Where and how to invest money?

In order to make your future financially secure and better, it is necessary for every person to not only save continuously but to invest that savings properly. Invested wisely in future inflation ( Inflation helps in meeting the increased needs and becoming a new source of Passive Income.

It depends on the investment scheme you choose. The biggest question is, which type of investment plan should you invest your money in and which not? It completely depends on that -

👉What are your Long Term and Short Term Goals?

👉How much risk can you take?

👉How many years are you going to invest?

Here, keeping in mind all the investment objectives and Investment Returns, according to this, we are giving information about the 11 best Investment Options. Before this, you can also know how to earn more interest (up to 9%) on your Saving Bank Account, for this you can visit this post.

👏Maximum Benefit Investment Schemes -

1. Investment in Equity

The best option is to invest in Equity Shares. According to the analysis, the highest return on equity is obtained as compared to other investment schemes, there is no upper limit on the returns on equity. There are many investors who get many times more returns from their investments on equity shares.

But with High Return there is also High Risk and the same applies to Equity. The probability of its rise in the share market is always equal to the probability of it falling and if you decide to invest in equity wisely, it can reduce the risk to a great extent.

Things to keep in mind while investing in Equity - (Investment Tips)

If you are in the initial stages, then first of all research it how it works and what are its main points. Which will help you in further decisions and avoid risk.

If you want to invest in equity, you should always invest thinking of long term. If you invest for a period of 10-15 years then it will give the highest return on your investment.

You should not invest your entire savings in the stock market. Rather 50% -70% of Total Saving is considered a good option for investing in the stock market, this will help your portfolio.

Make a list of your favorite stocks, get deep research and information on the past years' performance of these shares and future plans of the company. Never invest in those random shares on which you have never done research.

Keeping all these things in mind, invest in yourself.

Advice - Brokerage companies recommend investing in Free. Never go on his advice because he wants to get more and more investment so that he can get brokerage.

2. Mutual Fund -

Investment in Mutual Fund is considered as the best Investment Option for Salaried Person, ie, who gets salary every month - Best Investment Option for Salaried Person

Mutual funds are the best option to invest in equities and bonds with a balance of risk and return.

A small portfolio can be made by investing a small savings every month through SIP.

With Mutual Funds you can invest in equities of companies from various sectors like finance, energy, healthcare, technology. This will reduce your total risk. For example, if at one time one company does not give a good return, but other companies will reduce your loss by giving a good return and your portfolio will be in profit.

3. Investment in real estate -

Real estate is one of the fastest growing investment sectors in India. A few years ago, people used to buy homes, land or commercial space for their use, but due to change in the trend of investment and returns, they are starting to sell them and invest in real estate to earn high profit in future.

As you know, there is no minimum or maximum investment limit in real estate. If you do not have much money, you can also invest in the shares of real estate companies.

Sometimes, the value of the shares in the market increases more than the actual price, which keeps going on its own. This should be kept in mind while investing in such situation.

The profit on the sale of Real Estate is fully taxable. However, you can save tax by re-investing Sale Money.

Investment in real estate depends only on how wisely you invest. For example, suppose you are buying a land in a remote area outside some city, so if there is a possibility of development there in the future, then you can get a big profit.

👉Best long-term & safe investment scheme

4. Public Provident Fund Investment -

Public Provident Fund is the safest and long term tax saving investment scheme in India. The reason for this is that PPF investment is being run by the Indian government. PPF accounts can be opened at any nationalized, authorized bank and some specific private banks and post offices.

👉PPF Important Points -

Tax is not charged on Return or Interest received on PPF and you can also save tax under Section 80C of Income Tax by investing up to Rs. 1.5 lakhs per annum. Good Tax-Saving Investment.

👉It is for long term investment which is for 15 years, it can be extended for 5 years.

👉The minimum amount of investment in PPF is INR 500.

👉If you are considering income tax deduction under Section 80C then the maximum amount is INR 1,50,000.

👉The current rate of interest on PPF savings is 8%, which is higher than Fixed Deposit.

👉You can earn compound interest on your investment and the amount of interest is tax-free.

👉You are allowed to withdraw your investment from your account only after the end of the 6th year.

5. National Savings Certificate for 5 years -

National Saving Certificate (NSC) is a type of Government Saving Bond which is a Risk Free Investment option. It is a part of the Indian Postal Service.

NSC: Important Points

👉The duration of NSC VIII has been fixed for 5 years.

👉The interest rate is 7.9% compounded annually.

👉Investments up to Rs.1,00,000 / - per annum are tax-exempt under Section 80C of the Income Tax Act.

👉There is no maximum limit for investment and the minimum limit is Rs.100.

👉Interest received from NSC is taxed and it is not tax free.

👍Best Investment Plan for 3 Years

6. Equity linked savings schemes - (ELSS)

ELSS is a type of Mutual Fund Scheme in which you can take Tax Benefit in Section 80C of Income Tax on investing. ELSS is the best investment plan for up to 3 years. ELSS is basically a diversified equity mutual fund, which gives you the benefit of tax deduction under Section 80C of the Income Tax Act. It is also called 'Tax Saving Mutual Fund' Most Indians do not have this investment option. This is the best investment option to save some tax under 80C along with the benefits of equity.

👉Best Short-Term Investment Plans in India

7. Short-Term Fixed Deposit

Short Term Fixed Deposit is the most popular Short Term Investment Option. Deposits are deposited in a deposit for a fixed period of time. On that fixed period you get the principal with interest and you can also invest money in fixed deposits for a long period of time. But in the long term, other investment schemes give better returns than fixed deposits. Therefore FDs are a good method for short term.

👂There are following options to invest in FD -

👉Fixed Deposit with the Post Office

👉Fixed Deposit with Banks

👉Fixed deposit with companies

8. Recurring Deposit -(RD Account)

Recurring Deposit is the best option for those who are not able to invest a lump sum and are looking for a monthly or quarterly investment in a security plan. An RD is usually opened for a fixed time and can be monthly, quarterly at pre-determined or fixed intervals according to the terms and conditions of the deposit scheme.

👀 The following are the options for investing in Recurring Deposit: -

👉Bank Recurring Deposit

👉Postal Recurring Deposit

Life Insurance Investment has become another better option as it serves two types of purpose and it also provides life insurance along with investment. Life insurance companies also pay the last additional bonus along with a fixed rate of bonus at the time of maturation.

9. LIC Jeevan Labh -

👉Key Points of Life Benefits - LIC

👉The policy term will be 16 years, 21 years or 25 years.

👉The premium paying term will be 10 years (for 16 years), 15 years (for 21 years) and 16 years (for 25 years).

👉The minimum fixed amount is Rs. 2,00,000 and the eligible age for admission should be 18 years.

👉The maximum age at entry is 59 years (for a policy term of 16 years), 54 years (for a policy term of 21 years) and 50 years (for a policy term of 25 years).

👉Maturation amount is tax free under Section 10D.

👉Premium payment on this policy is exempt from income tax under Section 80C.

👉Best Investment Plan for Child

10. Sukanya Samriddhi Yojana -(SSA)

Sukanya Samriddhi Yojana is an investment scheme launched by the Government of India for the benefit of the girl child only. SSA is a good investment scheme for higher education and marriage of Girl Child.

Sukanya Samriddhi account of the girl child can be opened till the age of ten years.

It is necessary to deposit at least 1000 rupees per year in this scheme. The maximum limit is 1.5 lakhs per annum.

The scheme offers an average interest of 8% to 9.5%.

The maximum time period of this scheme is 21 years from the date of account opening.

Up to 50% of the amount can be withdrawn when the Girl Child turns 18.

The account automatically closes when the girl gets married and the entire amount is paid.

Best Investment Plan for Senior Citizen

11. National Pension System -

The NPS is set up by the Government of India for the purpose of providing pension benefits to all citizens. Due to the involvement of the government, it is a safe investment scheme for pension purpose.

👉There are two types of options available to build your portfolio in NPS -

👉Tier 1 Account - Under this account, customers cannot withdraw funds before retiring. It is mandatory for all government employees to invest 10% of their salary in this account.

👉Tier 2 Account - Under this account, customers are free to invest funds as well as withdraw funds at their convenience. However, to open a Tier-II account, a customer must have a Tier-I account.

👉Final thoughts

If you want to invest in a long-term high return scheme, then equity and mutual funds are good measures, but the risk is also high. For low risk schemes, invest in PPF, NSC or FD. If you are at the youth level then you should invest more in an investment scheme with high return, like 70% -80% of your investment portfolio. After that, as you progress, you can reduce your investment risk and switch to more secure investment schemes.

About

Hi , This is Pramod Choudhary from Nagaur Rajasthan India. I an student and I would like to share my positive thinking with everyone that's my passion . Thank you