Home Finance 12 Investing Options In India - Make In India

12 Investing Options In India – Make In India

Investing is not an IQ game where a person with a high IQ beats the person with a low IQ.

Here an idiot with a plan can beat a genius without a Plan.

Many investing options in India are available where impatience people invest their money and want within a short period of time their money gets double or triple.

They want to earn lots of returns,   but they do not want to take risks. Corporate Tax is reduced by investing

In investing if you take high risk wisely so the probability of earning money is too high. Here lots of patience is required.

As a result, very few people get success in investing because the majority believe in the get rich quick scheme.

 There are three level of risk in Investing

Low riskLow returns
Medium riskMedium returns
High riskHigh returns

What Will You Get Here

  1. About Investing
  2. Direct  Equity
  3. Equity  Mutual  Funds
  4. Debt Mutual Funds
  5. National Pension System
  6. Public Provident Fund
  7. Bank fixed deposit
  8. Senior Citizen  Saving  Scheme
  9. Real Estate
  10. Gold investment
  11. Stock Market
  12. Tax Saving  Fixed  Deposits
  13. Monthly   Income  Scheme Of  Post  Office
  14. Conclusion
  15. Frequently Asked Question

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About Investing

Here I want to mention one thing that only taking a risk is not sufficient in other words you have to take the risk wisely only taking a big risk is not the guaranty of high returns.

Many steps are responsible to select the right kind of investment. Sometimes a wrong selection of investing options in India loses the principle money.

In our country, the majority of the population considers it as gambling because they start investing without actually getting the knowledge about it.

An investment product that gives high returns with low risk is not present in the market place. People are always waiting for the right opportunity, but only a trained mind can see the opportunity. Personal Finance is related to Investing

There are two types of investment

financial (Stock Markets ,Mutual funds )

Non Financial  (real state)

As good things takes time the same as that investing sometimes takes lots of years. You did not give birth to the baby in one month so good things always take time.

If you can- not control your emotion as a result you will not earn money.

our emotion gets you in trouble so use it properly.

It must work in your favor so you can utilize the power of it.

There are many Investing Options In India by which you can invest  and get high returns just by complying the fundamentals of investing:

Direct   Equity

It is the process Of buying the share of the company when the company put some percentage of its capital public in the form of share.

People buy the share by seeing the future possibility of a company, hence it requires lots of research and study about the company so that it gives profits in the future.

Generally people buy the share when it goes down and sells it when its value goes high. This process takes many years so investors wait for the right time.

As I already said patience is a virtue in investing.

Currently, the 1, 3, 5-year market returns are around 13 percent, 8 percent, and 12.5 percent, respectively.

To invest in direct equity you would have to open Demat Account there is no guaranty in it

Your profit depends on the performance of the company. An equity fund is also known as stock funds.

Equity  Mutual  Funds

Equity funds invest in the stock to get high returns. It is also a risky investment. It is one of the best investing options in India  

According to the Exchange Board of India (SEBI), Mutual Fund Regulations an asset management company must invest 65 percent of assets in equity.

There are trained experts in finance who manage an asset.

Instead of investing in a one-sector they invest in various sectors meanwhile where chances of return are high.

It is classified according to the domestic (investing in domestic countries ) or international(investing in foreign countries ).

Debt  Mutual  Funds

This is ideal for the person who does not want to handle big risk .It is less risky in comparison to equity mutual funds.

DMF invests the fixed deposits generating securities like corporate bonds, government securities, treasury bills, commercial paper, etc.

 during , the 1- 3- 5- year market return is around 6.5 percent, 8 percent, and 7.5 percent, respectively.

National  Pension  System (NPS)

It is a scheme that is sponsored by the government.In addition It came into existence in the year 2004.

Earlier it was for the government employee, but later in 2009 it was opened for all the sector, either for a government employee, private employ, self-employed, NRI.

Age criteria are between 18 to 65. It is a type of national retirement Plan. In addition, It has two types of account

TIER 1 A/C=500Rupees /Month

TIER2 A/C=1000/Month  

Firstly Tier 1 has tax benefits, you did not withdraw money easily. After the completion of the period of the scheme.

Secondly Tier 2 has  no  restriction, it does not have tax  benefits .it has Point  Of Presence (POP)   to open the account like LIC, Post Office, ICICI State Bank Of India  (SBI), Kotak Mahindra  

After the completion of 60 age, you can take your whole money. You can take 60%of your money in cash and 40 %in the form of a monthly pension. Generally 40% is exempt and others are taxable.

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If a person dies in between the period of the scheme then the nominee would be given all the money.

12 investing options in india

Public Provident Fund (PPF)

It is risk-free and tax-free .In addition it is a long term investment. Therefore it is popular investing options in India.

Where you withdraw your money in between the scheme or after the completion of the scheme, you do not have to pay interest on your returns. So here you get  good interest in comparison to Fixed Deposite

Eligibility: resident Indian individuals, one person can open 1 can open one account only.

Bank fixed deposit (FD)

It is a high interest yielding investment, In addition, and provides interest way more than saving accounts.
FD has a certain period of deposit, the longest possible term for  FD IS 10 years.
It is seen that the interest on FD is paid in the third month from the date of opening the account.
For ex .if you open the account on 15 April so you would get interested on 15 July.

Senior Citizen  Saving  Scheme  (SCSS)

It is basically for the senior who has passed over 60 years.
People do not want to put their money in the equity where the risk of losing the money is high
Here They can not withdraw till a lock-in period and don’t offer any income until maturity so it is suitable for the old age group.

Real State

Once upon a time real state was at the top-notch because it gives lots of returns so generally, people take it at a low cost after a certain period of time they sell it at a high cost.
But real estate affected badly after the demonetization.

The house you lived in is not an asset, it is a liability. Do you know?

When you own a house after that it takes money from your pocket, so it is considered as an asset.

And as time passes its value keeps on decreasing, it needs lots of maintenance.

you can consider it as investment .you can earn money by giving it in rent.

Gold

There are many metals that are precious and have value in the market.

Due to its liquidity and inflation-beating capacities, in other words, it is higher in cost.

Gold

It is considered as the best investment among the metals

Gold investment can be done in many forms like buying jewelry, coins, bars, gold exchange-traded funds, Gold funds, sovereign gold bond scheme, etc.

Stock  Market

The stock market is the place of the auction for the investors therefore they buy and sell the stock.
The company which did their share public, so investors buy the share in low of cost and when the prices go up they sell it.
There are four types of stocks
Growth stocks.
Dividend aka yield stocks. …
New issues. …
Defensive stocks.

Tax Saving  Fixed  Deposits

Firstly It is used for tax exemption under Section 80C. It has a limit of the amount of 1.5 lakh per year.
Secondly, In the case of a joint tax holder, the tax exemption would be enjoyed by the first one.  
Tax-saving fixed deposits have a lock-in period of 5 years.

Monthly   Income  Scheme Of  Post  Office

It is a low-cost MIS that generate steady income. Most Importantly It is the product of the bank.

Where you can invest at low risk. In addition, You can withdraw when the investment gets mature.
Features & Benefits of Post Office Monthly Income Scheme

post office

Capital protection: Here capital is safe until maturity because it is a government scheme so it is not risky at all.

Tenure: The lock-in period for Post Office MIS is 5 years

Small start: You can start with a very low amount just a cost of 1500. In addition, You earn returns with a certain amount of interest.

Investment doesn’t fall under Section 80C so you are taxed on the returns you get
firstly there are a few points which you keep in mind before selecting the investment :

Risk Factor
Goals And Expected Results
Investment Period

Conclusion

Investing is not an IQ game where a person with a high IQ beats the person with a low IQ. You can start investing by saving

Many investors invest their money but want within a short period of time their money gets double or triple.

There are many ways to invest money in India and every option has pros and cons so invest wisely and have patience.

In addition, there are options where you can invest for example Direct  Equity, Equity  Mutual  Funds, debt mutual fund, National  Pension  System (NPS), Public Provident Fund (PPF).

Frequently Asked Question

1:Which Is Best Investment Options In India

There are many investing options in india which is mention above , each has pros and cons .Different investment is for different purpose .So you can choose your investment according to your purpose .

2:Why Investment Is Necessary

There are two methods to become rich first is business and second is investing .

3:Which Is Better Saving Or Investing

Investing is better because your money keeps on increasing and you earn money if you have the correct knowledge and if you have chosen the correct form of investment.

4:Best Investing Books

The intelligent investor is one of the best books recommended by top players of investing

This is Anurag Dwivedi. I have completed my B.A from Allahabad University. Help you at content writing, WordPress site development, FB ads, and SEO

Anurag Dwivedi
This is Anurag Dwivedi. I have completed my B.A from Allahabad University. Help you at content writing, Wordpress site development, FB ads, and SEO
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