In today’s time, investment plans are one of the most crucial things one can do to take care of their loved ones financial security. Furthermore, as mishaps do not occur with prior notice, people must be well prepared for the future so that they do not face any financial constraints.
With rising inflation, the cost of the majority of the things like education, buying a house, etc., have increased by multiple folds. Moreover, it has become quite challenging to fulfil the life goals. Therefore, for better planning, one should invest their money in a smart way and invest in the best investment options available in India.
Let us first understand what is an investment plan?
What is an Investment Plan?
An investment plan is a plan that lets an investor invest their money in the market for money growth. Investment plans help secure the investor and their family’s future in terms of financial security and future financial goals.
Let us look at the 10 best investment options in India.
Some of the Popular Investment Plans in India
- Unit Linked Investment Plan (ULIP)
ULIP offers dual benefits of both investments as well as insurance. Not only does ULIP keep a part of your money for insurance purposes, but it also invests your money in the market for its growth.
- Fixed Deposits (FD)
For people looking for the safest and risk-free investment plan, then a fixed deposit is for them. FD is a risk-free, stable and ideal investment plan. One can invest in FD if they want to guarantee sustainable returns and security of the money invested at the same time.
- Mutual Funds
For someone willing to take a slight risk, a mutual fund is the best investment option. Though it does involve some risk, mutual funds offer historically high returns and quite good growth of money.
- Public Provident Fund (PPF)
PPF is an investment plan with a maturity period of 15 years, with partial withdrawal facilities after completion of 5 years. PPF also provides the provision of loans against it. In addition, with PPF, you can enjoy the advantage of tax benefits (subject to certain conditions).
- National Pension Scheme (NPS)
The objective of NPS is to provide regular income and financial security to the investor after his retirement with high-interest rates. It also lets you invest in government bonds, shares, etc.
- Senior Citizen Saving Scheme (SCSS)
SCSS is an investment plan for people above the age of 60. It provides steady and regular incomes to retired people at interest rates decided by the government.
- Stocks
Stocks, though they involve risks, are known to provide high returns. People who wish for fast returns can go for stocks as an investment tool. However, please note that the performance of a respective stock depends on the market conditions.
- Bonds
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). It provides fixed interest payments and the safety of your investment.
- Direct Equity
Direct equity is buying a company’s equity which entitles you to the legal ownership of the company. How your direct equity performs directly depends on the company’s performance in the market.
- Liquid Bonds
A liquid bond is an investment plan which is similar to a stock-market investment. Here, you can withdraw your money at your convenience. They generally involve less risk with good returns.
Conclusion
Investing in an investment plan keeps you free from financial worry in the future and lets you achieve your financial goals and dreams. When one plans to start with an investment plan, they must go for the best investment option that is in sync with their needs and future financial goals.
