Where to Invest Money to Get Good Returns in India
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Updated date : 19 June 2020
Where to Invest Money
With the rising expenses, individuals today look for investment options that would let the money grow over some time. It is good to increase your wealth and invest in investment options that can enhance and build your corpus. However, it is prudent to consider certain things and know where to invest money.
Besides, it is essential to contemplate the money that would be required in time of an emergency. In case you are unaware, most of the investment tools are offered against a lock-in time frame. This implies that the funds, which have been invested, will not be withdrawn until the period gets completed.
Therefore, before you make any payment, it is recommended that the investors should set aside the funds, which can be considered as the money that would be helpful in time of any emergency and will be helpful and handy at an uncertainty, for instance, medical or any other expenses.
Another key aspect is that you should clear off the debts before involving in any money investment plan. To avail, the best investment options and receiving the high returns make sure that you are free of debt so that you are not risk-prone and you are on a safer side.
In case you have debts then it would become difficult to manage the investment. Therefore, before you initiate on any money investment plan make sure that all dues and loan are cleared off so that when investing there is no financial burden on your shoulders.
When you are all set to manage your funds for emergencies and have no dues on you then it is the right to make the move towards the best investment options.
Which Investments Have the Best Returns in India 2020?
Listed below are some of the best investment options that should be considered to receive high returns in India:
1. Systematic Investment Plans
The SIPs are one of the most convenient and easy investment options wherein an individual needs to invest a sum, which is pre-determined regularly. Based on the convenience, the investor can invest the pre-determined sum by accordingly opting for the frequency of payment, which could be weekly, monthly or quarterly. Based on what the investor select, the sum will be automatically debited from the source account and will be likewise invested in the scheme of the mutual fund. It is to be noted that with every debit additional scheme will be bought and included to the investor’s account of the mutual fund. In India, SIPs are a preferred investment option and is an ideal saving tool because it provides healthy returns and likewise the investors also inculcate the habit and discipline of imbibing savings.
2. National Pension Scheme
The National Pension Scheme is for those individuals who are looking forward to an investment option, which has a low-risk profile, besides it is a government-sponsored scheme. As the NPS is being backed by the government, therefore, chances are slightly less that you will lose on the finance. Irrespective of the contribution you make, you will obtain a specified sum as a pension. Moreover, investing in an NPS is also beneficial within Section 80CCD (1B) you will qualify for tax benefits too. One can also easily save up to an amount of Rs 1.5 lakh per year within the Section 80 CCD, Section 80CCC and Section 80C. Besides, for an investment up to Rs 50, 000 additional deductions may also be availed within the Section 80CCD (1B). Also, if you fall within the bracket of high tax you may structure your salary in a way wherein the 10% of the salary amount will be contributed by the employer and you will not end up doing the same within Section 80 CCD(2).
3. Real Estate
Another best investment option to invest your money is to invest in the real estate. In case you are unaware, the returns upon the investment provided by the real estate are higher when compared to other sectors. It is important to keep patience as the value of any land or a property increase over time and not instantly. So, if you have the fund to invest, you should invest in real estate and you will not be left disappointed.
4. Public Provident Fund:
If you are a hazard opposed financial specialist, the Public Provident Fund (PPF) this investment option is for you. PPF is one of the well-known Section 80C alternatives for the basic man since it isn't hazardous. Likewise, the plan is anything but difficult to begin for the individuals who are not web sagacious. You can open this record in a bank or even in a mail station. This reserve is fundamentally the same as a Bank Recurring Deposit (RD) yet has the residency of 15 years with the choice to expand it forward up to five years. On the off chance that you are a salaried individual, you may locate this astounding method to put aside a specific whole consistently to put resources into PPF. On the off chance that you require a credit, at that point, you can profit one on your PPF and make a withdrawal, which could be early after the seventh year of opening the account. One of the most alluring highlights of a PPF account is that the premium that you acquire on this store is liberated from tax assessment.
5. Mutual Funds
When it comes to investing in the mutual funds it essentially means that the funds will be invested into investment alternatives majorly the bonds and equities. When you plan to invest in mutual funds, understand that the investment will be diversified and is a safer investment avenue wherein you invest in shares that are individual within the stock market. These funds are managed by individuals who are expert and trained enough who are professionally trained in terms of banking and are at a position to manage the portfolio of investment efficiently than other regular investors.
6. Initial Public Offerings
Initial Public Offerings is another money investment plan wherein companies that desire to sell the shares to the common public give undertakings and is referred to as IPOs. The prices of these are generally low when it is offered initially. When the performance of a company has been more than good, the investor has a better chance of making profits. In case you are in the dilemma of where to invest money, IPOs are a preferred choice in India as it might offer you with returns passing 60 per cent every year.
7. Stock Markets
When you plan to invest in a stock market it implies that you will contribute to the capital of the company that should be upon the list of the stock exchange. The equity of the company can be bought by buying the shares. The cost of the shares may rise or decline in the premise of the performance of the company.
The most significant thing to recollect when putting resources into the stock market is that acceptable returns are conceivable just if the investor is extra cautious while picking the stock in, which he/she wishes to contribute. Stocks that accompany low beta worth are a superior wagered as the ascent or decrease in stock costs will rely on how the market varies.
Therefore, before you spend analyze, understand your requirements and position of where to invest the money.
It is important to make the right investment choice and make the best investment for good returns in India 2020.
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