Before investing in an instrument, you often think of the several factors associated with it such as returns, the safety of the invested amount, benefits, etc. Some investments will complement your short-term financial goals whereas some of them will assist to meet your long-term financial goals. Some instruments provide tax savings as well.
Therefore, you must be aware of your financial needs and plans before investing. These are the top 10 best investment plans that will give you ideas on how to invest money and earn substantial returns:
SCSS i.e. Senior Citizens Saving Scheme is an investment option offered by the Post Office of India for individuals above 60 years. The SCSS Interest rate is high and it also allows you to claim a tax deduction of up to Rs. 1.5 lakhs on the deposited amount.
Like fixed deposits, the interest on Senior Citizen Saving Scheme is also compounded after every quarter. However, you can invest only up to Rs. 15 lakhs in it, and a maximum tenor extension of 3 years is provided on completion of the initial tenor of 5 years.
Mutual funds are market-linked instruments that provide high returns. Equity funds, debt mutual funds, and hybrid mutual funds are its main types.
However, since the money you invest in mutual funds gets further invested in stocks, debts, money market funds, etc. the growth of your investment will depend on the market conditions.
PPF i.e. Public Provident Fund is a government-backed scheme that provides high returns on maturity. However, it matures only after 15 years and its withdrawal options are also limited.
Also, it is only beneficial for those who are seeking long-term investment options.
NPS or National Pension Scheme is another government-backed scheme that invests a portion of your invested amount into an annuity fund that generates a pension for you after retirement.
The remaining portion can be withdrawn after maturity. However, this is also a long-term investment option.
Post Office Monthly Investment Scheme (POMIS)
POMIS is a monthly investment scheme provided by the Post Office of India. It is one of the best instruments for those who want to earn a monthly income without taking any risks.
A minimum deposit of Rs. 1500 can be made every month for 5 years. However, this long term investment option does not provide tax rebates on the returns.
RDs allow you to deposit a fixed amount every month that keeps on earning interest till maturity. The RD interest rate is better than a savings account but it offers lesser returns than an FD as only the initial deposit accrues interest for the entire tenor.
Investing in gold is considered to be a lucrative option. Gold investments like Gold ETF, Gold Deposit Scheme, etc. provide good returns in a short time whereas Sovereign Gold Bonds offered by RBI enables you to earn a good profit in the long term.
You can invest in shares if you have experience in stock market trading. It generates good returns over the long term but your investment gets exposed to market fluctuations.
Systematic Deposit Plan (SDP)
SDP (Systematic Deposit Plan) is introduced by Bajaj Finance and it lets you deposit a fixed amount starting from Rs. 5000 each month. You can deposit from 6 to 48 times according to your financial obligations and each deposit will be considered as a separate FD.
Each deposit is treated as a separate FD and can be locked-in for a tenor up to 60 months or all the deposits can mature on the same date as per your choice. The interest prevailing on the date of deposit will apply to every deposit. This deposit option is profitable for those who want to earn good returns without depositing a one-time bulk amount.
Company FDs provide higher interest than bank FDs. For example, Bajaj Finance FD grows your deposit at an FD interest rate of up to 6.85%. Also, it has received high ratings for stability and safety by credit rating organizations like ICRA and CRISIL. Therefore, your investments are secure.
A flexible tenor of up to 60 months is available and you can also invest in multiple FD plans simultaneously by utilizing the multi-deposit facility. Therefore, it proves to be ideal for achieving both short and long-term financial goals.
A 0.25% higher FD interest rate is offered to senior citizens that enable them to earn substantial returns. Also, you can use its FD calculator to predict your returns in advance.
An additional FD rate of 0.10% is provided on using an online FD form to invest in its FD plans. All these features and benefits make it a top investment option for everyone.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.