It is natural to feel confused by choices. You might find hundreds of attractive options especially when it comes to investing. How do we pick one or a few out of several equally agreeable choices? There are a few things an investor has to be good at to be able to decide on a particular investment instrument. As a nudge in the right direction, we are going to tell you what the trending and most rewarding investment options are.
1. Direct Equities
Investing directly in stocks is for the brave hearts out there. The benefit of equities is that they give fair returns in the longer run. However, there is a greater risk of heavy losses too. Apart from that, one has to be knowledgeable about stocks and businesses to pick out the best stock to invest in. Other than that, timing your entry and exit is a crucial part of getting benefits. There is chance and diligence in play when it comes to profiting from equities.
2. Public Provident Fund
In the world of investments, PPF has to be the safest savings option. It requires next to no effort to set up and can be operated even through a post office. Though it comes with a relatively short tenure of fifteen years, it can be extended. This is ideal for middle-aged investors who are looking to save up enough for retirement. One can also avail loans from the PF amount should the need arise. Another advantage of PPF is that there is little risk, and the returns from PPF is exempt from taxes.
3. National Pension Scheme
National Pension Scheme is a government scheme that offers a low-risk platform for investment. You receive a pension for the investment you make in the scheme. As it is supported by the government, the chance of losing your investment is unlikely. NPS also comes with bonus features such as tax benefits and more savings.
4. Mutual Funds
Mutual funds are the go-to investment option for many Indians nowadays. The credit for its popularity goes to a variety of features that are exclusive to mutual funds. Mutual funds come in a variety. There are mutual funds that suit everyone’s needs and capabilities. Greater diversification balances out possible risks and returns, thereby making mutual funds safer and more beneficial.
The expertise of the fund manager is a key factor that influences the success of the mutual fund. But asset management companies usually make sure that the fund manager is an experienced professional with the skill-set necessary to navigate the highly volatile market.
In addition, a very attractive feature of mutual funds is the ease of getting started. On online applications like Groww, this is as easy as a few clicks. Setting up a SIP requires no paper-work and can be completed in a matter of minutes. Also, withdrawing your money is as easy as investing. Investors can redeem their money any time they wish to.
5. Other Tangible Assets: Real Estate and Gold.
Although real estate sector have gone into a lull in certain parts of the country, it remains the most viable form of long-term investment. As a rapidly developing country, India’s escalating urbanization led to a quick rise of real estate sector in the past few decades. It still continues and cities are expanding more and more. Real estate holdings is most likely to bring fortunes to those who can afford it. However, a problem with real estate is that it is not as liquid as other investment options like mutual funds. It may prove harder to change hands, and delays in regulatory approvals may also cause worries.
Gold is a similar type of investment, the one most familiar to the common people. Less known alternative to investing in gold in the form of jewellery are Exchange-Traded Funds (ETF), Sovereign Gold Bonds and so on. These options offer the value of gold sans making charges as well as the risks of safe-keeping.
Leave a Reply