Top 10 Best Investment Options in India 2023

What is investment?

Investment is an enthusiasm of money to attain an increase in value over a period of time. Investment helps in increment of value of money within a time and over a time period. Investments require patience for increase in assets value that takes time and give a positive response to us.

Investment is future oriented, aimed at earning in the future. In investment use take an element of risk. The risk can be high in case of investment in stocks, new business ventures, business expansion and so on.

How we can understand the purpose of Investment?

Investment always includes the assets, for a specific goal you can invest your asset which helps to you in your achievements. You can invest for new business, education, after retirement, life insurance etc.

Best Investment Options in India

1. Direct Equity – Stocks

2. Equity Mutual Funds

Mutual fund is a group of investment which is professionally managed by a fund manager who determines the fund’s investment and maintains a profit and loss account. A group of investors jointly invest in stocks, bonds, short term investments or other securities.

There are many types of mutual fund in the market-

1)-  The money directly invest into shares that is called Equity funds. On the basis of size of companies, they are further divided in to small-cap, mid-cap and large-cap. The short-cap investment can be risky but mid-cap and large-cap helps you to earn the best return.

2)- Fixed income funds of mutual fund give fixed return to the owners. This type of investment is done by those investors who do not want to take risk.

3)- Exchange traded funds (ETFs) are choosing by the investors to take care of their risk. This type of scheme is used in both stocks and bonds.

4)- Solution oriented mutual funds are use according to the specific goals or solutions.

3. Debt Mutual Funds or Bond Funds

4. National Pension Scheme (NPS)

5. Public Provident Fund (PPF)

PPF is one of the most popular savings schemes among investors in the country. It is the safest long term investment product among the best investment options in India. The best thing about this investment option is that it gives you the benefits of EEE (tax free at the time of investment, tax free on interest, tax free on redemption). It is completely tax free.

Under Section 80C of the Income Tax Act, you can get tax exemption on investment of Rs 1.5 lakh in PPF in any one financial year.

PPC can be opened in either bank or post office. Money under PPF account opened in bank or post office is locked for 15 years and you can earn compound interest from this account. You have the option to extend the time limit of your PPF account for another five years.

The only drawback with this PPF account is that you are allowed to withdraw your investment only at the end of the 6th year. If you have any requirement of money, you can take a loan against the balance available in your PPF account.

6. Bank Fixed Deposit

FD is a very popular type of investment. It takes fix time period for fix money. There are different time periods for different amount. It’s depending on fixed interest rate. A fixed deposit account can be open opened for a minimum period of 7 days to maximum period of 10 years. It varies from bank to bank with low rate as Rs. 50/-.

7. Senior Citizens’ Saving Scheme (SCSS)

This type of investment ensures earning with an interest rate of 7.4% per annum and can be opend by an individual who is above 60 years age. Senior citizens also  can be invest jointly and get access to regular income along with  tax benefits.

8. Real Estate Investment

9. Guaranteed Saving Schemes

10. Gold

11. PMVVY

12. Bonds

If you feel uncomfortable investing in mutual funds and in direct equity market, you can try investing in bonds too. Investing in bonds can be one of the best investment options as there are very good bonds that actually offer a high rate of return on investment.

There are many bonds that are under the government and providing good interest rate for 10 years. So, find out, research, understand and decide on the best savings investment option to secure your future.

13. Post Office Saving Scheme

The post office schemes are launched by the government and offers investment rates ranging between 5.5% – 7.6%. These schemes are investment instrument that is higher yielding when compared to FD or mutual funds. It also reduces tax liability.

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