While looking for an investment plan, a person must select a plan that will provide them with higher returns. Many investors do not have adequate knowledge about the stock market and need to figure out investment options that best suit their interests. Therefore, to help you out, here are some of the best investment plans that an investor can opt for to maximise their returns without taking many risks. Go through these investment plans and start your investment soon.
The top 10 best investment options available are:
1. Senior Citizen Savings Scheme
This investment can be made by senior citizens who are above the age of 60 years or are either in superannuation or have voluntarily retired from their jobs and are between the ages of 55 years to 60 years age. There are no risks associated with this scheme, and the minimum period of investment here is 5 years, which can be further extended to 3 years. The investor will be able to get a return of 8% p.a. The minimum investment can be Rs 1000, and the maximum amount is Rs 30 lakhs. Moreover, the investor will also get tax deductions under section 80C under the IT Act of 1961. You can research with top
investment apps in India to get better ideas about this scheme.
2. National Pension Scheme
This scheme can be invested in by people who are between the ages of 60 to 70 years, and this can also be extended by 5 years. All residents of India, as well as NRIs, are eligible to invest in this scheme. However, there is low to high risk associated with this investment, and the returns are based on market returns. However, the returns can range between 9% p.a to 12% p.a. Investment limit for Tier I is Rs 500, and for Tier II is Rs 1000. Here also, the investor is eligible to get tax deductions under section 80 CCD (1), 80 CCD (2), as well as section 80 CCE of the Income Tax Act of 1961.
3. Pradhan Mantri Vaya Vandana Yojana (PMVVY)
The minimum period to invest in this scheme is 10 years, which is made for senior citizens above 60 and also other normal people. This low-risk investment provides a fixed return of 7.4% p.a. The investment limit here is Rs 1,56,658 to Rs 15 lakhs. However, no tax benefits are associated with this scheme.
4. RBI Savings Bond
RBI Savings Bonds can be purchased for 6 years by any Indian citizen, institutions, HUF, universities, charitable institutions and others. No risks are associated with this bond, and the investors are eligible to get a 7.1% return. The minimum investment amount for this scheme is Rs 500, and the maximum investment amount is Rs 1.5 lakhs yearly. The investors can also get tax deductions under Section 80 C and Section 10 if they invest in this scheme. There are many online applications available where you can invest in this scheme. You will only need to search for investment app India to get more information about this scheme.
5. Initial Public Offering
The initial public offering is when a company initially issues shares to the public to raise money. However, in order to invest in an IPO, the investor needs to have a Demat cum trading account. Therefore, the risk level of an IPO is medium to high, and there are no specific rates of return associated with the IPO. It depends on the performance of the company and its performance in the stock market. Moreover, the money to be invested also depends on the price at which the shares are being offered to the public, and this varies from company to company. However, there are no tax deductions available on this. Moreover, the amount of gain is taxable under Long Term Capital Gains and Short Term Capital Gains.
6. Direct equity
Investors can also invest in numerous shares available in the stock market. The only thing required is to have a Demat account to get started. However, there are risks associated with direct equity, and it is up to the investor to decide the level of risk he is willing to take, considering his expectations of returns.
7. Mutual funds
Mutual funds are also a great option for investors. Mutual funds are for investors who want to invest in equity shares or debentures but are not willing to take high risks. Here, the investors tend to invest in companies that further invest in equity, debentures, or bond market. There is a lock-in period of 3 years, and this is highly market linked. The minimum amount is Rs 500, and there is no upper limit for the amount you can save. There are tax exemptions available under the ELSS scheme under section 80 C. You can get started with mutual funds by opening an account in going to investment apps in India.
8. Gold ETF
There are no time limits required for investing in Gold ETFs, and anyone can invest in these. The risk associated with Gold ETF is low to medium, and the returns are based on the performance of gold in the market. No minimum amount you can save, but the returns are taxable under STCG and LTCG.
9. Unit Linked insurance plan
Anyone below the age of 45 years can invest in these. These are for high-income individuals, and the returns from this scheme are medium to high, depending on market performance. No minimum or maximum amounts are set for investment in this plan, and tax exemptions are also available under section 80C and section 10 of the IT Act. You can search for Investment Apps India online, which will show you the different unit-linked insurance plans.
10. SIPs (Systematic Investment Plans)
Investing in mutual funds in a methodical manner may be done via the use of SIPs. They make it possible for investors to make consistent investments of a predetermined amount, enabling them to benefit from rupee cost averaging and the accumulation of wealth over the long run.
