10 Top Investment Options in India in 2022

     

 

                         10 Top Investment Options in India in 2022

1. Fixed Deposits (FD) and Recurring Deposits (RD)

Many investors, especially those who want assured returns with no risk, continue to favor fixed deposits (FD) and recurring deposits (RD). Leading banks, Non-Banking Financial Companies (NBFCs), as well as the post office, make it simple to open FD and RD accounts.

2. Mutual Funds

Mutual fund investments are exposed to market risk; thus, one should consider the risk before making an investment. Mutual funds might develop into your ideal investment possibilities if we comprehend the market and its risks and how to use them to multiply our money. We can design a portfolio of assets based on our preferences, whether we choose to invest in the long run or the short term. 

Monthly systematic investment plans or systematic withdrawal plans can be good investing choices if we desire a stable income from mutual funds but have a reduced risk tolerance. If we wanting to invest in India and want a large return, it may also be a good option.

3. Direct Equity

One of the strongest investment options for long-term goals is direct equity investing. It has to do with a company's equity shares, which bind us in relation to the ownership of the business legally. We must understand as an investor that a company's success affects the share price, both favourably and unfavourably. We can also decide to later sell the shares back to the company or a third party, depending on the market and your risk tolerance.

4. Post Office Saving Schemes

India Post, the organization in charge of managing the nation's postal system, has made these deposit options available to investors. This investment choice was originally made available to encourage people to develop a lifelong habit of disciplined saving while also offering investment opportunities to support financial planning.

The simplicity of enrolment or application is what distinguishes these schemes as one of the best investing possibilities. By going to the closest post office location, we 

can make an investment in these savings plans.

5. Bonds

Companies and governmental entities, like individuals, require money for social programmes and infrastructure development, thus they sell bonds to the public markets. The interested parties then purchase the bonds to aid these organizations in raising money.

In other words, bonds are fixed-income investment choices that serve as collateral for a loan that a shareholder makes to a governmental or corporate borrower.

Also, bond prices are inversely proportionate to the provided interest rates. It implies that these prices decrease and vice versa as interest rates rise.

6. National Pension Scheme (NPS)

To replace the pension plans for employees of the State and Central Government, the National Pension System (NPS), also known as the National Pension Scheme, was first launched. However, starting on May 1, 2009, all Indian nationals had access to NPS investments. Tier 1 account and Tier 2 account are the two accounts into which NPS investments may be made. As per current guidelines, only NPS Tier 1 account gives tax benefits and is obligatory. There are no tax advantages to the optional Tier 2 NPS account.

7. ULIP

Unit Linked Insurance Plans are an additional investment choice for people who want insurance and returns that are linked to the market (ULIP).  One of the top investment plans in India is now the ULIP.

This best investment choice in India combines the advantages of insurance and stock market investing to help us grow our money over time. Depending on whether we choose long-term or short-term investing alternatives, you can select the policy tenure that is most appropriate for you. Additionally, ULIP also offers tax benefits under section 80C of the Income Tax Act 1961.

8. Liquid Funds

Liquid funds are like stock market investments, wherein money is invested in government bonds and securities. It is one of the best investing options on the market because there is no lock-in time, and you can withdraw money as needed. 

Liquid funds are among the greatest investing options in India for short-term investments. You can put money into it for three to five years and take money out when you need it to accomplish short-term objectives. They are also one of the greatest investing options because they are less vulnerable to market hazards than mutual funds.

9. Public Provident Fund (PPF)

A government-backed programme called Public Provident Fund offers guaranteed earnings depending on the current interest rate. The government determines the PPF interest rate, which is subject to change on a quarterly basis. 7.1% is the current PPF interest rate, and it will remain in force through September 2022.

10. Senior Citizen Savings Scheme (SCSS)

It is one of the better investment alternatives supported by the Indian government and is designed for those over 60. After five years from the account's opening date, the sum placed in this plan matures. Additionally, it may be renewed once for the next three years. The SCSS interest rate is currently 7.4% through September 2022, making it one of the highest government-sponsored saving plans accessible in India.

                                                                                                          By

                                                                                                         M Kiran Mahi

                                                                                                         30-075