Numbers of best investment options in India are available in which one can invest. However a large portion of India believe to invest in Gold or in Land, low yielding bank fixed deposit or insurance policies. A very few people are aware of other investment options rather than discussed before. People do believe that investment in real estate, land and goal are more safe ways to investment and future savings. As according to Financial Asset of Household Sector report it was seen that investment in these assets were around 70% of all household assets. In the below image you can check out the FAHS report in 2012-2015. In which the large portion of investment was in Bank Deposits, Currency and Life insurance funds.
Investment options may vary investors to investors as per their risk appetite. Hence, below are some of the best investment options with their past returns along with their risk level.
Investments with Low Risk and Stable Returns
FDs—Fixed deposits can are secure investments. Many banks provide better interest rates on FDs, which typically range from 3% to 7% per annum. Investors can park their money for a minimum period of 7 days to a maximum of 10 years. A similar option to Bank FD is Recurring Deposit, which is equally effective.FD rate may vary depending on the bank. They have a minimum of six months to a maximum of a decade’s tenure. Their interest rates are around 6–7% per annum. it is one of Best Investment Options In India.
Liquid Funds— These funds invest in short-term money market products such as treasury bills, commercial papers, term deposits, etc., which have a low maturity period, usually less than 91 days. Liquid funds provide easy liquidity and are less volatile than the other types of debt instruments.They are not subject to too much changes.
Ultra Short Term Funds— Ultra short-term funds invest in fixed income instruments which have a maturity period of around six months or lower and are mostly liquid. Ultra short-term funds help investors avoid interest rate risks. Short term funds mainly invest in Commercial Papers, Certificate of Deposits, Money Market instruments, etc.
Fixed Maturity Plans— This scheme is offered by Mutual Funds, which invest in money market and debt instruments. These funds come up with lock-in period varying from a month up to three years. Unlike FDs, you cannot withdraw your money in FMPs before the maturity period. However, FMPs are more tax efficient than FDs, and you can also expect better returns than other plans in it and is also safe.
Investments with Mod-High Risk and Returns
Equity Funds— Equity funds are best suitable for long-term investment plan. They are high in both risk and returns. Investors can choose from a host of option such as large-cap funds, mid & small-cap and thematic funds. Large-cap funds carry low risks compared to mid-cap and thematic funds. ELSS is considered to be one of the best options to save tax (up to 46,000) and also grow wealth through equities.Best Stock Market Strategies To Get Great Returns
Stocks— Stocks are preferred for higher returns, but it is also important to know the risks attached to it.You may loose lakhs and may gain lakhs Investors wanting to invest in stocks should assess themselves on the following parameters-
- In-depth knowledge about the markets
- Knowledge on how to assess good stocks from bad ones
- Ability to Monitor, since exiting is also important
- Ready to take high-risks
Debt Funds— Some of the debt funds like long term income funds and gilt funds carry very high-risks. Since these debt mutual funds largely invest in government securities, corporate debt, etc., they are not affected by equity market volatility. But any adverse interest rate movement can give negative returns.
Few of the best investment options are listed below:
- Life Insurance
Every income tax payer should have life insurance policy not only for tax exemption but also to secure his/her family.According to 2018-2019 budget, life insurance offers tax benefit of up to Rs 1.5 lakh under section 80 C of the Income Tax Act as shown in the table above. It is one of the best tax saving instruments. Also in the case of death, the lump sum amount which is offered to the beneficiary is not taxable under section 10(10D).
- Health Insurance
Health insurance or Mediclaim is one of the tax saving instruments and policy that every family should possess a security against any illness. Under mediclaim, tax deductions are availed on the premium paid under section 80D. Thus premiums up to Rs. 25,000 are subjected to tax deductions. If we purchase a health insurance for ourselves as well as our parents, then we are eligible for deductions up to Rs. 30,000.
- Unit Linked Insurance Plan (ULIPs):
For a long term investment, Unit Linked Insurance Plan is one of the good tax saving instruments. The premiums are invested in debt and equity. It also offers insurance to our investment. We can expect good returns if we invest in it for 10-12 years. In case of ULIP, there is no premium holiday. Our policy can get discontinued if we fail to pay premium. It is the only tax saving instrument which allows us to switch from equity to debt. It allows tax deduction of up to Rs. 1.5 lakh under the section 80 CCC of the Income Tax Act.
- New Pension Scheme (NPS)
If we are looking for a one of the tax saving instruments which offers both retirement and tax benefits, then New pension Scheme is the best investment option. It is a low cost and friendly investment option. We can invest a minimum amount of Rs. 6000 in instalments as well as lump sum. An investor can also choose where to allocate money, whether in equity, gilts or corporate bonds.
- Equity Linked Tax Saving Scheme (ELSS)
Equity Linked Tax Saving Scheme (ELSS) is a short term investment option with lock in period of 3 years. The minimum amount which can be invested is Rs. 500. As it invests in equity, ELSS is a good tax saving instrument for even long term. We are not bound to continue after the lock in period gets over. It is always better to invest our money over a period of time than investing in lump sum. One can get tax deduction of Rs. 1.5 lakh under section 80 C of the Income Tax Act.
- Public Provident Fund (PPF)
This is one of the most preferred long term tax saving investment options under section 80 C of the Income Tax Act. It has a locked in period of 15 years and can be extended in blocks of 5 years. According to 2018-2019 budget, the investment limit has been extended from RS. 1 lakh to Rs. 1.5 lakh. The minimum amount that can be invested in Public Provident Fund (PPF) is Rs. 500 and the maximum amount that can be invested is Rs 1.5 lakh. It is one of the best tax saving investment for the people who are not covered under Employee Provident Fund like the self employed professionals.
- National Saving Certificate (NSC)
It is a fixed deposit service which is offered by the post office. As National Saving Certificate (NSC) is different from bank fixed deposit, it offers fewer returns. But this investment scheme is Government secured. Therefore our money is completely safe. It has a lock in period which ranges from 5 years to 10 years. The longer we invest in NSC, the more we will become eligible for extra tax deductions.it is one of Best Investment Options In India-Top Government Policies
We should plan our savings not only for tax exemptions but also for a better and financially stable future. We should save our hard earned money from getting depleted by paying taxes on it. The above investment options can help us to achieve the targets of tax saving and also provide good returns for our Future needs.
When you think of returns, firth thing that comes to our mind is whether the investment option is safe or Risky? Investors must understand high returns is possible only when you take high risk. What are Best Investment Plans in India with High Returns for high-risk investors? How much risky are these Investment plans in India with High Returns & high-risk? Below are some of the Best Investment Plans in India with High Returns for high-risk investors 2019 filtered based on past data. If you do with clear understanding, these investment options will have a high potential for getting excellent returns.Best Stock Market Strategies To Get Great Returns
In recent Quarters, Small-cap and Mid-cap stocks have fallen heavily die to many reasons, while there are many quality stocks in this segment which will multiply your returns multifold. However, these stocks are very volatile and stock prices are moving up and down. Mid-cap and small-cap stocks have beaten all index references in the long run and although these stocks are down from a past couple of quarters, long term returns from these stocks even after falling so much is very high compared to NIFTY 50 Returns.
2) Invest in IPOs for High Returns with high-risk
3) Invest in Corporate Fixed Deposits/ Bonds/ NCDs
There are many corporate FDs which gives higher returns than Bank FDs, Higher the risk, higher the return. many Companies have 10% annual Interest rates even now where FD rates in Banks are at 6 to 7% range. Investors with a high-risk profile can invest in them to get higher returns compared to Bank FDs. These investment options will have ratings mentioned by agencies like Crisil and ICRA, you may choose the best-rated option to avoid failures. This is best one under Fixed income category for Best Investment Plans in India with High Returns for high-risk investors in 2019.Its one of Best Investment Options In India-Top Government Policies
4) Trading in Forex currency / Day Trading in Stocks
You might have seen many online advertisements on Forex trading and money getting doubled overnight. Though this investment option is risky, there is a possibility of such an opportunity of making money with this method, one must learn and experiment in paper trades before taking actual trades as your money is at high risk. However, this requires a lot of time in analyzing and people with regular job/working professionals will not be able to allocate time for such study.
Investment through Options trading carries risk, if not done without any knowledge you will not have any option other than losing your money .
There are a lot more option trading strategies which are considered as high risk but with consistent profits. Few methods if done well can fetch you over 35% annually without taking much risk of capital.
No doubt these are Best Investment Plans in India with High Returns for high-risk investors 2019, investors must learn and practice in paper before actually investing money or trading. Though I have mentioned many of the options, I personally prefer Option 1, 2 and 5. Others are for knowledge purpose and can be taken appropriately based on the risk profile of investors.Best Stock Market Strategies For Beginners