Best investment options are always different according to different investors. What suits one person might not suit another. Because the goals, risk tolerance levels and financial capacities of every person are different.
According to this theory, every investor is different and like different investment plans. So, we have summed up the best investment options for all kinds of investors.
List of Best Investment Options In India 2022
1. Bank Fixed Deposit
via: HDFC Sales
Fixed deposit is the oldest and most popular investment option in India. It is the instrument provided by banks in which you invest a lump sum amount of money for a fixed period. After the maturity period, one can withdraw it with higher returns without any risk.
- For whom: Best for long term investors
- Minimum Investment: Rs 10,000
- Maximum investment: Rs 150,000
- Period: 7 to 10 years
- ROI: 3.5% to 5% per annum
Axis Bank, Karnataka Bank and Jammu & Kashmir Bank are providing the highest return of 5.1% per annum.
2. Mutual Funds SIP Plans
via: Money Control
Investing in Mutual funds is being a trend for the last 2 or 3 years. The company borrows money from investors and reinvests lent money in stocks, bonds, and short term debt. It contains many types of investment options and services you can invest in. SIP plans are one of those services.
Systematic Investment Plans (SIP) is a way to invest a fixed amount of money in regular intervals, once a month or quarter. After a fixed period of time, you can get your money with higher returns. It is way too similar to a recurring deposit in banks.
- For whom: Best for salaried employees
- Minimum investment: Rs 500 per month
- Maximum investment: No limits
- Period: 3 to 5 years
- ROI: 10% to 15% per annum
There are many companies listed in mutual funds that provide you SIP plans like ICICI Prudential Bluechip Fund, Axis Bluechip Fund, Kotak Bluechip Fund etc.
Also Read: Best Digital Investing Platforms In 2021 Making Investment Easy
3. National Saving Certificate (NSC)
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National Saving Certificate is short or medium savings available in all Post Offices in India. It is also a recurring type of investment option in which you can invest every month or quarter. It possesses a very low amount of risk and is backed by the government of India. NSC interest rates were announced by the Ministry of Finance every quarter.
- For whom: Best for salaried employees
- Minimum investment: Rs 100 per month
- Maximum investment: No limits
- Period: 5 years
- ROI: 6.80% per annum
Also Read: How To Make Short-term Investment in 2022-23? Take A Look At The Options Here!
4. Sukanya Samriddhi Yojana (SSY)
via: Granthshala.in
If you are a parent of a girl child and want to secure her future, then you must invest in Sukanya Samriddhi Yojana. It’s an initiative launched by Prime Minister Narendra Modi as a part of the “Beti Bachao Beti Padhao” campaign. The girl must be under 10 years old to register for this investment option.
The returns are very high in this scheme with tax deductions under section 80C. You can open this account in any government bank.
- For whom: Best for girl child
- Minimum investment: Rs 250 per year
- Maximum investment: Rs 1.5 lakh per year
- Period: 21 years
- ROI: 8.6% per annum
Also Read: Bitcoin vs Litecoin – Which Is The Best For Retail Investors?
5. Senior Citizens Savings Scheme (SCSS)
A senior citizen saving scheme is a plan for people after retirement. One can invest a lump sum amount in it and get access to a regular income with several tax benefits. The citizen should be between 55-60 years old who wants to opt for the scheme.
People can secure their old life with open an account in the nearest post office or any authorised bank under SCSS. It is the most reliable investment option for senior citizens.
- For whom: Best for senior citizens
- Minimum investment: Rs 1000
- Maximum investment: Rs 15 lakh
- Period: 5 years (also expendable for 3 years)
- ROI: 7.4% per annum
Also Read: 5 Useful Tips To Improve Your Personal Finances During Covid-19
6. Debt Mutual Funds
via: theglobeandmail.com
Debt mutual funds are basically those types of funds that invest in fixed income instruments and money market instruments such as treasury bills, corporate bonds, government securities, etc. The main motive of those funds is to generate interest income from the capital invested. The underlying assets bring out a fixed rate of interest over the tenure.
Debt funds are the best investment options for beginners or risk-averse. There is very low risk in it and generate regular income.
- For whom: Best for beginners
- Investment: Different amounts according to different funds
- Period: No time limits, you can withdraw your money on any business day
- ROI: 7% to 9%, market-linked
Kotak Savings Fund, Axis Liquid Funds, Aditya Birla Sun Life Liquid, and IDFC Low Duration Fund are the best debt mutual funds nowadays.
7. Public Provident Fund (PPF)
via: divestopedia.com
Public Provident fund is a post office saving scheme launched in 1968 by National Saving Institute. It is also run by some nationalised and private banks. The government backs it and the returns are guaranteed.
Investors can invest a fixed amount every financial year for a fixed period of time. Your interest is calculated monthly on the PPF balance and payment is made on 31st March of every year. Along with that, such deposits also provide tax deductions under section 80C. It’s the safest way to invest your money with very high-interest rates.
- For whom: Best for long term investors
- Minimum investment: Rs 500 per year(Some banks allowed to start with Rs 100 per year)
- Maximum investment: Rs 1.5 lakh per year
- Period: 15 years ( Can be extended up to 5 years)
- ROI: 7.1% per annum
These are the best and safest investment options for Indian citizens in 2022. Choose according to your needs, goals and capacity to start investing.