We all have our own financial goals. Some save for shorter-term dreams – be it a wedding, a house, a car or may be a vacation while other might be seeking long-term investment schemes for their retirement years. To succeed in these goals there are a plethora of investment options too. But, the most difficult question is Where to Invest Money?
By and large, every investor desires good ROI with the substantially low risk of losing money. To make it easy for you here is a list of top 5 Investment Options in India popular amongst investors.
1. Fixed Deposit: It is the most common financial instrument available in the Indian market today. Investors consider is safe and easy to open. Depending upon the given maturity date it offers compounding returns of up to 7% per annum, it is comparatively higher than returns offered by savings accounts. Being an FD holder with the bank, you can also avail the additional services such as a loan against FD certificate.
2. Public Provident Fund: No matter you are salaried or self-employed you can open a PPF account with a minimum initial deposit of Rs. 500. The interest rates on PPF account is announced by the Ministry of Finance, GOI, for every quarter. The current rate of interest is 8% p.a. (October 2018-December 2018). It is compounded annually. The lock-in period of PPF account is 15 years. After a 7th financial year you are eligible for partial withdrawals and on maturity, you can withdraw the money in full or go for an extended account. Also, loan facility is available after the 3rd financial year.
3. Stock Market: The stock market is a marketplace where securities and ownership stakes in organizations and businesses are sold, bought, issued and traded. Assumed to be a risk investment it comes with its fair share of plus sides and downsides. Before making an investment decision – you must have proper knowledge of how to analyze the stock. It provides average ROI in the middle of 7% p.a. to 10 p.a. Examples – National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
4. Mutual Funds: With the recent advertisement, Mutual funds are becoming an increasingly popular investment option in our country. Offering a great alternative to the stock market, you can start with investment in mutual funds if you lack the proficiency to evaluate stocks. Most popular types of mutual funds are equity funds, debt funds, money market funds, income funds, fund of funds, specialty funds, index funds etc. These funds are managed by professional fund managers who have specialized knowledge about investing in the various asset class.
5. Peer to Peer Lending: Peer to Peer lending is one of the safest alternative asset class to build their wealth in short duration. The ROI is higher in comparison to traditional investment options such as stocks, PPF and mutual funds etc. You can invest in high yield Online Loan and earn highest ROI of up to 36% p.a. Investors can also diversify their portfolio into various credit risk profiles. With reinvestment, this investment offers compounding returns. It is a reliable and attractive investment options for salaried Person to include in your portfolio.