With the Indian economy growing at a rapid pace, keeping your money in financial institutions doesn’t make much sense anymore.
The best way for you to grow is to invest in various financial instruments available today. As people in India, it’s challenging to find the best investment options and investment advisories.
However, India has a handful of investment options that are worth your time. The best investment options in India for 2022 should be considered carefully as they are meant to offer a stable income return and growth over a period of time.
So we have consolidated a solid list of the best investment options in India in 2022, check out:
Unit Linked Insurance Plan
A Unit Linked Insurance Plan is a fixed sum of money that you invest for a specified time period. At the end of the time period, the plan will pay out a lump sum amount to your nominee if he survives that long.
The value depends on when you elect to start receiving payments from your ULIP and their prevailing interest rates.
If you have a long time horizon that assures regular savings, then unit-linked insurance plans are the way to go.
However, even in such a scenario, you should compare the insurance of a diversified mutual fund portfolio to get your highest returns.
A mutual fund is generally considered the best investment option by all kinds of investors. You just have to invest and relax, it takes care of rest. By the way, you can call it, the most trusted financial option for both the good days and bad times.
As we all know, Mutual Funds are an important part of any investment portfolio as they diversify your investments and protect your money against market crashes.
Mutual funds help simplify investing by giving you a single investment vehicle to buy into a wide range of stocks, bonds, and other available securities.
Simply stated, mutual funds let you participate in multiple investment opportunities within one fund, simplifying the process of investing and allowing you to put your money to work in a variety of asset types.
Bank Fixed Deposits
Bank fixed deposits can give you a great return on investment (ROI). Usually, an amount from ₹ 50,000 to ₹ 10 lakh can be made in your bank account. However, when it comes to investing, safety doesn’t always mean high returns.
The Fixed Deposit is the most popular investment product in India. In a fixed deposit account, we deposit some of our money (usually in a lump sum) for a fixed period of time with a banking institution.
The banks offer us a lower rate of interest on FDs and FDs are a great option to park money in the short term but earn small interest. The banks provide FDs on various maturities and they come with added benefits.
National Pension Scheme (NPS)
The National Pension System is a pension scheme introduced in 2004, which is an initiative by the Ministry of Finance, to help people save for retirement. NPS was started with the intention to supplement the lack of sufficient employment-related pension provisions in India.
With NPS, people can get tax benefits and social security benefits which encourage them to invest in their future. We have just started exploring the investment opportunities in this financial instrument.
NPS has enough potential to become one of the most sought-after tax-efficient retirement products in India.
Senior Citizen Savings Scheme
It seems appropriate to delve into the details of one such option that can help senior citizens in investing their savings – the Senior Citizen Savings Scheme (SCSS).
It offers attractive returns with no restrictions on withdrawal and tax benefits as well. The senior citizen savings scheme introduced by the Narendra Modi government is the best investment option in India for 2022.
Senior citizen savings are the best old age benefits schemes in India. The government has launched many other pension schemes but none has been this good for senior citizens as this one.
Real Estate Investment
Masses are investing in real estate, be it for the first time or for long-term investment for future use. While other inexperienced investors go for different commercial sources, real estate investment is not something to be ignored.
Real estate investment is one of the best options for investment in India, it is a long-term and secure investment. The real estate industry can give great profits in the coming years with increased infrastructure development.
RBI, a form of the Government of India, introduced investment schemes known as RBI Bonds in 1994. This was done to manage liquidity and secondary market borrowings of the Government of India. There are many other factors that make these bonds an attractive investment option.
They have high credit ratings and usually have a fixed rate of return. The reason to invest in bonds is that they are less volatile than stock markets and can provide a steady source of income in the long run.
Gold ETFs is only meant for short-term investments as they can be risky when compared to other ETFs. As per statistics, for the last 10 years, the value of gold exchange-traded funds has increased by 16%.
This makes it one of the best possible options for investors who are looking forward to investing in gold as it’s a hassle-free investment option.
Investing is always a challenging task, especially in an economy like India. Some people swear by their fixed deposits while a few others rely on savings accounts and some prefer mutual funds. There are a number of financial instruments available in India for investment.
Through this article, we have gone through each of these investment instruments and elaborated on the potential benefit they hold. We have come to the end of this guide, and hopefully, you have learned that investing in India is often overlooked by investors with more money to spare.
Finally, now that you know which are the best investment options in India for 2022 and then have read about them in detail, it is time to make a decision.
You can invest for the long term so that it is not going to fail very fast in 20 years but will provide you steady income throughout life. That way your principal investment can be used for buying other assets or even the next generation’s education.
The best investment options in India for 2022 are often ignored because they may not be known enough. However, they tend to provide the best returns while being much better than inflation.
Due to all the restrictions, regulations, and bans imposed on banking products, it is difficult to invest as much as you want to. So, you can take help from a value research stock advisor.