Best Investment Plan in India – Investment Plan is a mixture of both insurance and investment. In today’s world, earning money is not enough for fulfilling financial aims and takes your dreams towards accomplishment. As there are various multiple options for investment strategies, but it may seem a little confusing to take the right plan. For investment plans, there are some factors associated with investment planning which indicates how many returns you can earn, what are the benefits and how secure your investment plan will be. The investment plans in India are probably of two types: Firstly, the ULIP plan is Unit-linked Insurance plans that give a return based on market performance. And secondly, Traditional endowment plans is a single amount or annuity payout when the life insurance coverage financing approach develops.
Here we will discuss the best investment plans provided in India, which are popular options for saving their financial goals. There is a various investment option in India, but some of the most popularly used for investment options are:
It is one of the popular investment scheme used by the people, it is perhaps a long-term investment plan option. A mutual fund scheme in India is formed when cash is collected from various investors and invested in a company’s bond or stocks. There are several types of investment and portfolio, apart from all these investments, mutual funds are the best. From mutual funds, you can approach all the best and generate a superb income. Mutual funds offer two advantages:
- Automatic diversification- By diversifying your capital over various securities or even resource types, a Mutual Fund essentially decreases your risk and helps deliver more stable, less unpredictable returns.
- Intelligent investing- Mutual funds schemes are controlled by finance administrators with extensive experience in the market. These funds manager research and study the business sector before making investment decisions for the scheme. This enables an individual’s investor to keep away from the stress of attempting to time or studying the market excessively.
Public Provident Fund (PPF)
If you are searching for a long term investment option, a Public Provident Funds, is prominently known for PPF, is a secure choice for you. The best part about investing in a PPF is that you are not required to pay the charge on the premium you gain from PPF. The only disadvantage is that you cannot withdraw money before the completion of at least 6 years. In any case, you need cash; you can get a loan from a bank on the balance in your PPF account.
National Pension System (NPS)
This system is based on the Government-backed scheme, it is most suitable for individuals who are looking for an investment with a low-risk profile. This best investment option in India offers two choices that are, auto and active. In the auto option, the fund gets automatically invested in different assets, while in the active options it helps the investors to invest in the assets as per their choice.
Real Estate investment
It is also one of the best investment options for those individuals who have numerous money in hand. In India, investing in Real Estate is considered to be one of the secured wagers by the financial specialist. Over the recent year, Real Estate has gained in value rapidly. While there is the concern of a “bubble burst” by certain sections of investors, many continue to keep on having faith in Real Estate assets.
Unit Linked Insurance Plans (ULIP)
A ULIP is a choice that offers interest in bonds and values, along with assurance through protection. In this type of plan, a part of the premium is invested in stock and bonds as decided you, and the rest is paid towards life insurance covers. Just like another investment option, it includes some amount of risks.
Types of Investments
While taking an investment, it is important to know various investment plans. Generally, there are three types of investments and they are:
In this type of investment option, that pays to fix income irrespective of the changes in the business or economy. The fixed deposits, bonds and debentures come under this type of category.
Medium risk investment
This type of investment scheme incorporates at some percentage of risk but then also it pays a higher return to the investor. The medium-risk investment option is the best option for investors who have a medium risk appetite and also who want to gain a regular flow of income.
As in this type of investment, the risk and returns are directly proportional to each other. The stock of companies’ deviation, equity mutual funds, and even stocks come into this category.