There is a saying of a famous personality “If you buy things you do not need, soon you will have to sell things you need”. In other words, you have to financially secure yourself in every way for any unavoidable circumstance. A disciplined economy is a mandatory requirement for each and every person. Money is nothing but a medium of exchange which entirely depends on value. With the passing time value of things may increase or decrease. Like 1rupee coin’s value was different a few years ago in comparison to the present year. Hence, we have to work smart in choosing plans among Various Investment Avenues in India.
Though savings and investment are two inter-related terms but still somewhere there is a thin line between the two. Savings means simply accumulating wealth while investment comes with an aggressive way with a reasonable return. Sometimes, due to lack of knowledge some people save money either in the home or in a bank. They don’t understand through inflation, the value of money is increasing day by day. If they don’t invest the money in a proper way, they will never able to beat the huge inflation rate. Therefore, you need to be very careful and wise while making the secured and stable investment decision for the future.
Various Investment Avenues Available in India
Any type of investment comes with an expectation of a profitable return. Everybody knows the need for the investment but most of them do not know the suitable medium to do so. Thus due to lack of proper knowledge, they lose the advantageous opportunity. We are able to jot down important mediums of investment. In this article, you will able to get brief discussions about Various Investment Avenues Available in India.
Investment options can be classified into many categories. There are basically three factors on which the classification is made. The factors are the risk, return, duration. In India, there are hundreds of investment alternatives available in India, so it is not possible to describe all of them. I’ve tried to choose the best plans of all.
Bank Savings or FD
This way is the most secured investment avenue available in India. One thing should be clear to you that the more you are able to take the risk, the more return you will able to get. Risk and return factor always go in the same direction in the financial market. Here, investors can choose your duration and amount according to your capability. Here, investors only look for the financial ability of the selected bank, otherwise, this investment holds near about zero risk ratio.
Bonds and Debentures
Bonds and Debentures are the most well-known security options in India. They are issued by corporations and institutions. Generally, bonds are issued by PSU. Hence, the risk is quite low here in comparison to other options. Though most of the time, both bonds and debentures use almost in the same way, they don’t include the same features. Bonds is like a loan, secured by specific assets while debenture is not secured by an asset.
This investment alternative carries medium risk and moderately high return with it. Field of the mutual fund is quite vast. According to the risk and return factors, there are thousands of plans or schemes under it. For example, SIP (Systematic Investment Plan), SWP (Systematic Withdrawal Plan), MIP (Monthly Income Plan) etc. Broadly we can categorize the mutual fund into two section, Open-ended (can enter-exit any time), Close-ended(can exit at maturity period).
It is the most volatile and risky market of all but with highest profitable return capacity. Like mutual funds, equity field also the biggest one. There are the variety of options available in the equity market. Aggressive investors who have knowledge and experience in the stock market may earn millions of money from it. Here, in this field, the more knowledgeable you are, the more successful you will be. There is no maturity period at all. Investors can trade on the one-day basis or long-term as per their wish.
Equity and commodity trade happen through a demat account. Just like equity investors can invest for commodity also. The risk factor and return are the same as equity. There is also no maturity period. You can trade as per your own choice able duration.
Properly rate are increasing day by day which has made real estate a hot investment alternative. Through buying, selling and holding of properly, investors can make a huge profitable return. Appreciation of property makes real estate a profitable investment tool in comparison to other.
Small Govt Investment Schemes
People with low-income rate and lowest risk bearer may apply for small Govt investment schemes. If you update the proper record of Govt policies and schemes, you can notice there are several small govt investments schemes. Some of them are Employees Provident Fund, Sukanya Samriddhi Schemes, National Pension Schemes etc.
Investment in gold is an ancient avenue of investment. Gold price is gradually increasing day by day. Therefore, some investors choose gold as their investment alternative. With the increasing value of gold, investors take profit from it.
However, these are the Various Investment Avenues Available in India. Through the various investment avenues, people can make a secure and stable financial future. It is advisable to start invest as early as possible. The more early you start, the more capable you will be to beat the inflation.
Ankita is a graduate in English language and she has also done her MBA from the Calcutta University. She has a high knack in the stock markets. An experienced stock market content writer Ankita is also trading on her own account. Ankita is also preparing for the NISM Research Analyst Series XV examination seriously.