Investments done at a younger age will act as your financial backup during your retirement years. And so it is important to invest wisely so as to build a considerable corpus for the retirement years. Investments are of two types based on the tenor; they are a long-term investment and short-term investment. Based on the volatility of the investment, you can choose your investment vessel accordingly. Market-linked investment scheme is volatile in nature but offers high returns as compared to secure investment options. Safe investment options offer guaranteed investment returns and the returns are higher than that of a standard savings account. You can select your investment based on your risk appetite and your financial goals.
Things to Consider While Investing this 2019
If you have decided to diversify your investments in market-linked investment options as well as secure investment options, you need to keep a few things in mind before investing. Smart investment can not only give assured investment returns but will also offer high returns from your investment. Investing just in volatile investment options would not be an ideal choice if you have no other financial backup plan. Investing in secure investment options like Fixed Deposit, Provident Fund and such will provide a guarantee of the deposited amount as well as offer fixed interest rates on the deposit based on the tenor and other factors of the investment. Whatever your choice be, you need to compare the plans as well as the financial providers online as well as offline and choose the right financial provider and the right plan for you.
What are the Best Investment Options Available in India this 2019?
From the list of investment options available in India, below mentioned are a few prominent investment options you must consider this 2019:
Public Provident Fund
Unlike the Employee Provident Fund (EPF) that is a mandatory investment through some organizations, you can invest in Public Provident Fund (PPF) without the organization. The PPF investment scheme is backed by the Government of India assuring guaranteed returns from the investment. The investment, maturity returns, as well as the interest earned, are exempted from tax payment as per the Income Tax Act of India. With a maximum deposit limit of Rs. 1.5 lakh, there is a lock-in period of 15 years with a PPF account. At present, the interest rates offered from PPF investment is 8%.
Equity Linked Savings Scheme (ELSS)
The ELSS is a similar investment option like the mutual funds. You can avail tax benefits for returns earned up to Rs. 1.5 lakh as per the Income Tax Act of India. The interest rates offered from investment in ELSS ranges between 12% and 15%. However, the returns from this investment are not guaranteed and are subject to the market-risks. The lock-in period of this investment scheme is 3 years.
Unit Linked Insurance Plan (ULIP)
When it comes to investment, insurance plans hold significant importance. Instead of investing in insurance plans and investment plans separately, you can choose to invest in ULIPs. This investment option offers the benefits of investment and insurance at the same time. You will be invested in various market-linked investments based on the inflation as well as insured against the uncertainties of life.
Fixed Deposit (FD)
FD is accepted to be one of the safest investment options in India from the ancient time. This is because of the high and assured returns earned from the investment. Company FDs gain higher interest rates than bank FDs. One of the leading financial company, Bajaj Finance offers additional benefits like flexibility in tenor selection (12 months to 60 months), higher FD interest rates for senior citizens (up to 9.10%), option to take a loan against FD by using over 90% of the accrued funds and much more. It provides access to its customers in the form of 200+ branches spread across 200 cities in India. It provides online account management facility to its customers to track their respective investments. You need to check your eligibility, submit a duly filled application form and a few necessary documents.