Investment is just like planting a seed and watching it grow gradually over time. Its growth may not always be evident, but you know it is growing. If you sow a seed today you will reap its benefit in the future. Same with an investment, you have a feeling of financial security in the future. It helps you save money for your future. There are a number of investment plans available in India which provide higher returns. We bring you a list of top 10 investment plans in India for the year 2024. You can choose the one that is suitable for your needs. In addition you can join the best option trading telegram channel SEBI registered to get the best Intraday trading tips.
10 Best Investments Options in India
Here is a list of top 10 investment options in India for 2024:
1. Stock Market
Investing in the Stock Market is one of the most common investment options. However you need a bit of expertise to invest in stocks. In this investment process you get the opportunity to participate in the growth of India’s leading companies. Stock market helps you make high returns over a long period, but because of the market volatility the risk is also very high. In India, the average return from the stock market is expected from 12-15% annually. It may not be the same for all the companies.
2. Mutual Funds
Mutual Funds investment instruments are managed by the trading experts or financial manager. Mutual Funds collect money from a number of investors to invest in multiple stocks and other securities. Among all the mutual funds, equity mutual funds are known to give higher returns by investing in multiple stocks in a wide range of sectors. In mutual funds investment, investors do not require expertise. You just have to find an excellent mutual fund company. Annually, the expected returns range from 12%-18% from equity mutual funds.
3. Real Estate Investment
In India, real estate investment is the most rapidly growing investment option. It gives you opportunities for capital growth and rental income. In real estate investment, the return differs based on a number of factors for example location, type of property, and the condition of the market. As the rates of properties rise every six months, real time investment can give you a return up to 8-12%.
4. Fixed Deposits (FD)
It’s been a long time since fixed deposits are a popular investment option. The investment is very popular with parents and grandparents because there is a fixed return and the risk is minimal. There are a number of the banks and NBFCs (non-banking financial companies) that provide various FD plans. In these plans the investors get pre decided interest rates and timeframe. They have to invest a certain amount for the specific tenure. In fixed deposits, the expected returns range from 5%-8%. The returns may vary from bank to bank.
5. Public Provident Fund (PPF)
Public provident fund is a long-term and reliable investment option in India. The option is provided by the government of India. Hence mostly people benefit from it at minimal risks. PPF provides alluring interest rates as well as tax advantages. But PPF has a 15 year lock in period. It means you cannot withdraw the money before 15 years. Annually, the expected interest rate is 7% to 8% in PPF investment.
6. National Pension System (NPS)
The NPS or National Pension System is also an investment option provided by the Government of India. It is a retirement savings scheme that is voluntary and regulated by the PFRDA (Pension Fund Regulatory and Development Authority). It is a type of pension alternative. The NPS fund is invested in corporate bonds and government securities via many investment options. Remember, the NPS investment plan matures only when the person is 60 years old. Annually, the expected interest rate is 8%-10% in NPS investment.
7. Systematic Investment Plans (SIPs)
In the current market, SIP investment is very popular. In this investment, the investors can invest a specific amount on a regular basis in mutual funds. It is great for all to begin systematic investment plans with only 100 Rs. The investment benefits from rupee cost averaging. It helps the investors to build up disciplined investing habits. Annually, the expected returns range from 10%-15% in SIPs. It also depends on the performance of the market conditions and mutual funds. Remember in the long term plan (3-5 years) it allures higher returns.
8. Gold
Gold is a higher asset and its been used as a way of storing the value and hedge against inflation since centuries in India. It is an excellent investment as the gold prices are increasing day by day. There are a number of ways to invest in gold for example:
- Physical gold
- Gold ETFs (exchange-traded funds)
- Sovereign gold bonds (SGBs)
- Gold mutual funds.
It is highly risky to have physical gold. Hence you can opt for a much safer way like gold ETFs, SGBs, and gold mutual funds etc. Annually, the expected returns range from 6%-10% in gold investment.
9. Government Bond & Scheme
The best way to start investment is to trust the government for the investment. There are so many schemes run by the government like:
- Sukanya Samriddhi Yojana (SSY)
- Senior Citizen Savings Scheme (SCSS)
- Post Office Savings Schemes
These schemes provide higher returns at low risks. Also, a government bond is a debt which is secured by the government. If you buy government bonds, it simply means that you are loaning money to the government. It also has a higher level of return. Annually, the expected returns range from 7%-9% in government schemes.
10. Cryptocurrency
In recent years, cryptocurrency investments have gained a lot of popularity. It is because it has higher returns in very less time. Investors buy and sell Ethereum, Bitcoin, and Ripple via cryptocurrency exchanges. Remember, cryptocurrency investments are highly volatile in nature. They require careful consideration and risk management. Annually, the expected returns from cryptocurrency investments can widely vary and are tough to predict.
The Bottom Line
Investing can be a brilliant method to build your wealth over time. There are a wide range of investment options like lower-return assets with low risks and higher-return ones with high risks. However finding the right investment option that suits you is not an easy task. You will need to understand how these options work, what are the returns and risks level to make an informed decision.
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