Apart from Mutual Funds, there are various other investment options in India. There are short-term and long-term investment options like bank fixed deposits, stocks, equity shares, etc. While you have a lot of options to choose from, your choice of investment options should be as per your budget, needs and future goals.
Let’s take a look at the various investment options we have in India:
1. Public Provident Fund
This is among the safest investment options in India. It is a long-term investment and is completely tax-free. When you open a PPF account in a bank or post office, your money gets locked for a time frame of 15 years. You can earn compound interest from this account. The flipside of this account is that you can withdraw your amount only at the end of the 6th year. You can take a loan on the balance of PPF account if you need it.
2. Direct Equity or Share purchase
This is one of the best options for long-term investment. Before buying direct equity or share, be sure that you have enough knowledge to analyze a share stock. This kind of investment when made for 15 years or more can bring you very high returns.
3. Initial Public Offerings
This kind of investment opportunities come once in a while. Initial Public Offerings are opened by any company only once. While there are huge benefits from IPOs of large and reputed companies, there are certain risks associated with them. This makes them uncertain for most investors.
4. Real Estate Investment
Real Estate is one of the fastest growing sectors in India. It holds prospects in major sectors like housing, commercial, manufacturing, hospitality, retail and so on. This is one of those sectors which has low investment risks as the rate keeps changing every six months.
5. Investment in Gold
Investing in gold has been in practice for quite some time in India. The value of gold keeps increasing and hence it is known as one of the evergreen products for investment. There are various options for investing in gold. Some of these formats are gold deposit scheme, Gold Bar, Gold ETF, Gold Mutual Fund ETF, etc.
6. Post Office Saving Schemes
These government saving investment scheme promise high returns. The best part of these schemes is that they do not have any risk-related factors.
7. Company Fixed Deposits
Other than bank FDs, you have the option to invest your money in Company FDs. These offer higher rates of interest than banks. While this kind of investment can bring you higher returns, you have to be very careful while selecting the period of investment as you cannot withdraw money before the maturity date. Another drawback of Company FDs is that they do not cover any insurance benefits.
8. Investment in Bonds
Investment in Bonds can be one of the best investment options which can give you a high rate of return on your investments.
These were some of the investment options in India. Before deciding to choose the best investment option, spend some time in understanding these options by research and analysis. Make sure to choose only that investment option that truly has the capability to fulfil your needs and goals. Find the top mutual funds in India for 2019