Investment Options In India.

With increasing, financial literacy levels in India, the number of investors looking to explore the options of investment are also increasing. While people are now starting to recognize the need to fulfill their financial goals and the power of saving and investing, there is still something that bothers the potential investors. That this is choosing the right instrument or the best-suited avenue for investment.

The problem isn't the lack of knowledge about the right instrument. the problem is choosing the right one out of so many options that are available.
Well, worry not we have got your back. Here are our top 10 suggested investments that can lend you a great profit over the long term.

Note: These recommendations are in general. These may be may or may not suit you based on your age, goals and your overall financial appetite.
So, That's been said and that's been done. Let's look at the options.

1. Direct Equity: This investment consists of investing your money directly into stock markets and if you do not have adequate knowledge you might lose your fortune during an inappropriate exit of a fund. The only way to earn is to withdraw during a perfect time or have a horizon of more than 3 years, which will ultimately lead you to high returns. The risk here is high and you should consult a financial adviser before having a Demat account for buying and selling stocks. You should consider the performance of a company and its background, which will allow you to analyze that, is it worth to invest in its share or not. Some people consider it as gambling but in the actual world, it is a precise calculation based on forecasting with necessary considerable factors.
2. Equity Mutual Fund: Mutual funds in equity are also a high risk of investment, which is done in an indirect manner. In this, you invest through a registered AMC into equity markets. The money can be invested with major 2 plans SIP – systematic investment plan & lump-sum. SIP has a monthly investment of some predefined amount for a certain time period and lump-sum has a one time deposit of amount. The money you have invested will be managed by a fund manager, which will allocate your investment funds in various company, and schemes, which tends to be profitable. These fund managers are highly qualified and professional which deeply analyze the scheme or company before any investment as a huge amount of investments is at stake. They generally follow an aggressive way of investment in equity where you might get a huge profit in short term but there is more fluctuation in this investment. Any type of equity Mutual Fund and SIP you consider must have a long term horizon for investment, as these schemes tend to provide returns in large horizons of deposits
3. Debt Mutual Fund: Debt mutual fund is a secure option to invest in SIP and Mutual Fund which are invested into treasury bills, bonds which are corporate, government securities, money market and other which have a predefined maturity date and rate of interest. You will be gaining interest and appreciation in your total amount by investing in this mutual fund. Investors can see the ratings of the schemes, which is provided by FITCH, IRCA, BRICKWORK, CRISIL, & CARE.
4. National Pension Scheme (NPS): In India, the National Pension System is featured as a voluntary contribution to take benefits during retirements. The NPS was first introduced to only government employees later it was opened for all the citizens of India who are in the age range of 18 to 65 years. PFRDA authority of India manages the NPS and regulates the money flow for benefits. This scheme investment will allow you to get an assured monthly sum of amount after your retirement and in some case, they get a bonus amount. You can add a nominee which rely on your pension & which is most probably your spouse. The return on NPS Contribution varies somewhere around 6 - 8 % and the contributory amount can gain you a tax benefit u/s 80CCD(1) , 80CCD(1b) and 80CCD(2) of income tax act.
5. Public Provident Fund: PPF can be termed as the most popular type of investment, which is loved by the people of India for its quality of being secure. The interest rate of this scheme keeps on fluctuating, which can be determined by the government announcing it every three months of tenure. The benefits received in the form of interest will be credited into the beneficiary’s account in the financial term end of the year, which is in March. You will get the rate of interest for every month by the authority of India. Indian citizens can invest a minimum amount of Rs. 500 and a maximum of up to Rs.1,50,000. The amount invested in PPF is eligible to a deduction from tax liability subject to the maximum limit of Rs.1,50,000 U/s 80C of income tax act.
6. Bank FD: The Bank Fixed Deposit is considered as the most secure way of investment as compared to other equity and debt market. With this investment, you can easily get a fixed amount of interest and its rate is fixed by the bank. It can be considered as the most assured way of reliable investment. The investment tenure is quite long if you are expecting high returns without taking any risk. This scheme requires in-depth analysis. All the banks offer a different rate of interest so invest where it is the most reliable, you can opt for government banks like SBI. The rate of return on these FD vary bank to bank. However, the senior citizens get an additional 0.50 % as compared to others. The current rate of FDs is rolling around 6 to 8%.
7. Corporate FD: Fixed Deposits that are issued by the private/public companies are known as Corporate Fixed Deposits. The interest given by the companies on fixed deposits varies from company to company. The risk is associated with interest. Higher the risk, higher the chances of default. Corporate FDs are more beneficial in comparison to the bank FDs as it gives a higher rate of interest. However, be very careful while choosing any corporate FD as the performance of the company will play an important role in these FDs.
8. Senior Citizens’ Saving Scheme (SCSS): SCSS is one of the best options for the persons who are above 60 years in age. Banks provide them with more than eight percent of interest which is very good. This scheme ensures security to all the old peoples and retired ones. The maximum amount an individual can invest in this scheme is 15,00,000/- INR. There is no limit on the number of accounts which can be opened. The account holder has the right to open a joint account also and can opt for yearly, monthly or quarterly crediting of the interest. It is supported by the Indian Government, therefore, provides the best securities of your investments. The retired Indian population is taking a lot of benefits of this scheme.
9. RBI Tax Bonds: The Indian Government has overridden the previous bond with 7.75 percent savings taxable bond. The RBI tax bonds have an investment tenure of around 7 years. These bond type investments are for investors having a conservative approach. The interest rate in these schemes is not that much high so the people opt for more benefit schemes, which are useful in their retirement, and provides more rate of interest.
10. Real Estate: The house that you are currently residing can be rented if there is enough space to give it on a lease otherwise do not consider this type of investment unless you buy another property with the motive of investment. The house, flat, plot, shop or any other real estate you bought must be analyzed completely so that you will a good return after you sell it. This is the investment, which earns you in two ways. The first is an appreciation that you will be getting on its original value and the second one is the rental, which you will get every month. This investment is very difficult to liquidate therefore if you assume to have money in the near future than this investment is not considerable.