Risk is a major factor on which many people base their investment upon. It is very well known that higher the risk, higher the returns might be. However, regardless of your risk appetite, it is very important to reflect upon the correct tools to grow your savings. To come forward with a better and detailed description of such plans, here’s a look at the top investment instruments in India:
1. Stocks: Stocks are currently the best long term investment plans one can opt for as they represent a share of ownership in the company or entity. These stocks can be easily traded, both online and offline, through the affiliate marketplace named ‘Stock Market’ where all the trades are done digitally.
2. Fixed Deposit: Investors who are looking for lucrative return, with a very low market risk, Fixed Deposit (FD) is the best avenue to choose. By investing on a Fixed Deposit, you can easily get assured returns at fixed intervals of time. This is also the reason why it the most liked and preferred plan in India as well as around the globe.
3. Mutual Funds: Mutual Funds are collective investment ventures managed by a fund manager of a company, which pools people’s money to invest in stocks and bonds and thus create affiliate returns. With the convenience of low investments, Mutual Funds are volatile investment strategies, best suited for the medium-risk bearing investors.
4. Senior Citizen Saving Scheme: This is a government initiated scheme for individuals above the age 60 years. The Senior Citizen Saving Scheme is an excellent long term saving option for retired people. It brings in steady and secure income with a steady or high rate of interest.
5. Public Provident Fund: Public Provident Fund is one of the most secure and common plans in the country. It brings in annual interest rates, with only a minimum investment of ₹500/anum. This comes in with a life of 15 years with partial withdrawals allowed, together with higher returns as prescribed by the government.
LONG TERM INVESTMENT PLANS: Long term investment plans are the ones that last long, but also come with a lesser risk for a higher return. These plans work away with investors who want to carry less risk but also back their asset with a profitable remark. Fixed Deposits, Public Provident Fund, Senior Citizen Saving Scheme, Equity Funds and Unit Linked Insurance Plans are some of the well known examples of long term investment plans in India.
SHORT TERM INVESTMENT PLANS: Short term investment plans are the ones that are invested for a shorter term, with relatively a very profit. With a high profit, there also comes a higher risk, which can lead to loss on some days or profits on the others. There’s an equal chance for both loss and profit for an investor, hence once should invest after proper research and market knowledge. Stocks, Mutual Funds, Money Marketing, Treasury Securities, Recurring Deposit are some of the common examples of short term investment plans in India.
