Where To Invest Money To Get Good Returns

Investors are now looking to invest in long-term investment options. These options can help you get good returns, hedge yourself against inflation, and take advantage of potential tax benefits. The most popular investment options from which you can get money are: 

• Stocks
• Mutual Funds
• Fixed Deposits
• Savings scheme 
• Post Office Time Deposit 
• Real Estate
• PPF
• National Savings Certificates (NSC)
• Gold 
• REITS
• SIP mutual funds 
• ULIPs
• Bonds
• National Pension Scheme

1. Stocks

Stocks are popular forms of investment, and you will get some good returns from them. But, you have to know the market well to invest in stocks. Otherwise, you will face a loss. You have to do a lot of research before investing in this long-term investment option which gives good returns. There are various types of stocks like growth stocks, value stocks, etc. Stocks can be filtered based on key parameters like market cap, net profit, etc. You must understand which sector the stock belongs to like management, market scenario, etc. 

2. Mutual Funds

Mutual funds are investment options managed by fund managers. Mutual funds pool people’s money and invest in multiple assets like stocks, bonds, equities, etc. of various companies. Mutual funds thus help you diversify your investment options, and this reduces risk. There are various types of mutual funds - debt, growth, hybrid, and more. The fund manager filters the right mutual fund option for you based on why you are investing and how much risk you are willing to take. Mutual funds are preferred for both long-term and short-term investment options. Another benefit of investing in mutual funds is that you can avail loans against mutual funds. 

3. Fixed Deposits

FDs have been secure and traditional investment options in India. It involves minimal risk while giving you sufficient returns as well. FDs are offered by banks, post offices, and non-banking financial companies (NBFCs). They come with fixed interest rates, and the interest gets credited at regular periods. The interest rate of the FD varies across different banks and NBFCs. You can also take loans against fixed deposits or they can just be great fund reserves for the future. 

4. Saving Schemes 

Savings schemes are supported by the government, banks, or financial institutions. You can save your monthly income regularly by investing in these schemes. These saving schemes come with a particular lock-in period during which you cannot withdraw the money. They are regarded as low risk investment options which yield good returns. Employee Provident Fund (EPF), Senior citizens savings scheme, National Pension Scheme (NPS), National Savings Certificate (NSC), Post Office Savings Account, etc. are a few well-known saving schemes. 

5. Post Office Time Deposit Scheme 

Post offices also offer FDs known as National Savings Time Deposit. These investment options enable you to deposit your money for short or medium time periods. National Savings Time Deposits yield better returns than banks. They are low risk investment options since they are backed by the government. Here is a table that shows returns from Post Office Time Deposits for different time periods. 

6. Real Estate

Investing in real estate is expensive, but it serves as the best long term investment option for good returns. It is one of the quickly growing sectors in India. Buying a flat or plot is an excellent investment option in India. You can either get monthly rent from it or sell it as property rate increases every 6 months. However,  ensure to consider all the related charges like registration fees, property taxes, etc. while buying or selling real estate. 

7. PPF

The Public Provident Fund scheme or a PPF is a long-term savings scheme. It combines tax savings, returns, and low risk. The main objective of this scheme is to help individuals make small savings and provide returns on the savings. Investments start at as low as Rs. 500. Principal invested, interest accrued, and maturity amount are all exempt from tax. 

8. National Savings Certificates (NSC)

The national savings certificate scheme is a fixed income investment scheme backed by the government. The certificate can be easily bought at Indian public banks, some private banks and all post offices. It can be opened with a minimum investment as low as Rs. 1000 and there is no upper cap on the investment. NSC has a lock-in period of five years, and premature withdrawal is possible in situtations such as the passing away of the certificate holder.

9. Gold 

Gold is a traditional and well-known investment option in India. It is a low risk investment option, act as an hedge against inflation, well-known for its value appraisal benefit, and is considered an auspicious investment option. The various ways to invest in gold is through ornaments, coins, bars, gold ETFs, gold mutual funds, digital gold, etc. You should do thorough research and understand each gold investment option before investing in them. 

10. REITS

A REIT is an investment option where a real estate investment based company owns and manages income generating real estate assets. REITS then distribute the income generated by the underlying assets to its unitholders. REITs are one of the best high investment return options. 

11. SIP Mutual  Funds 

Systematic investment plan is a type of mutual fund wherein you can invest a fixed amount at regular intervals of time, say quarterly, monthly, etc. This is really easy as you can give your bank standing instructions to debit the amount at the particular interval. The quantum of the investment amount can be as low as Rs. 500. You must invest for a long term and hence must start early. This will maximise the returns. SIP investment plans help you invest in a disciplined manner without caring about market volatility and timing the market. 

12. ULIPs

ULIPs are plans that provide consumers the double benefit of insurance and investment. It offers you a long term investment plan and also acts as a life cover for your dear ones in case of an unforeseeable event like death. You can buy ULIPs from any bank or insurance company in India. A part of the premium paid towards ULIPs goes towards life cover while the remaining can be invested in a fund of your choice. You can invest in anything like equities, debt, or a combination of both funds as per your risk appetite and objectives. The best part about ULIPs is that you can choose the quantum of life cover that you want. Other perks include the option to partially withdraw a part of the money invested in your policy and tax benefits. 

14. Bonds

Companies and governments invest in bonds and get good returns for their companies. You can buy these bonds for a fixed interest and duration. Bonds are deemed to be a  low risk investment option in India. When they are government backed, they are more reliable sources of investment. 

 

15. National Pension Scheme

This is the most popular government backed investment options that provides pension alternatives. Since the scheme matures only when the person reaches the age of 60, the age of the investor determines the length of the lock-in-period. Your funds can be invested in stocks, government securities, bonds, and other investment options. 

How to Choose the Best Investment Plan? 

There are many investment options available in India. Before you pick an investment option, you need to understand it carefully. The risk factor of each investment is different, and all investments will not fulfill your needs. And also no investment will suit all your needs. So, you have to invest in multiple sources and create a well-balanced investment portfolio to lessen your risk. In this way, you can fulfill all your investment needs and even if one investment is not doing well, the profit made on the others must be able to compensate. 

Conclusion

Finding the right investment plan may be hard, but it is necessary to research, understand, and read about the investment options before diving into them. This will maximise your returns from investments. 

FAQs

1. In what schemes can you invest in India for a monthly income?

You can invest in schemes such as real estate, fixed deposits, provident funds, etc. to get monthly income. The amount of monthly income depends on the scheme you select. 

2. Is it a smart option to invest in gold?

Gold is a very good investment option. Although the price of gold fluctuates, it always Maintains its value over the long term. It is good to invest in gold especially during inflation as it acts as a hedge against it. It has stood against the erosion of major currencies. 

3. Which investment has the highest returns with low risk? 

Fixed deposits are the best investment options for many individuals because of their low risk and profitable. returns. FDs are not impacted by the oscillations in the market. So, they are highly dependable.