Many people want to save and invest their money for a long period of time. But, they don’t have an idea regarding where to invest and which investments help to grow money over a long period of time. Currently, there are plenty of investment options available in the market. In this blog, we will discuss top four investment options currently available in India.
One of the best options to grow your money over a long period of time is by investing in Mutual funds, particularly equity mutual funds. When compared to other investment options in the market, mutual funds will definitely give good returns. In the last 10 years, top funds have generated nearly 20% CAGR. Investing in mutual funds is very simple and investors with no knowledge of the stock markets can also invest in mutual funds. Through Systematic Investment Plan (SIP) route, you can start investing in mutual funds with as low as Rs 500 a month.
Investing in the stock market is another option to grow your money over a long period of time. Even though the government has introduced long-term capital gains tax, equities are still a tax-friendly investment option. But, before investing your hard earned money in shares, make sure you know how to analyse the stock market. Invest in the stock market only if you are ready to take the risk and stay invested for long period of time.
Real estate is one of the fastest growing sectors in India. If you want your investment to reap good returns, you can buy a flat or plot and wait for it to appreciate. Safety of the investment in real estate has been increased with the implementation of RERA. The risk is very low in real estate investment because the rate of property increases with time.
Public Provident fund is backed by the Government of India and it is a favorite investment of many investors. Public Provident Fund offers you an attractive interest rate and it enjoys EEE benefit. The money you invest in PPF will be exempt up to Rs 1.5 lakhs under Section 80C of the Income Tax Act. The money accumulated and withdrawn at maturity, are also exempt from tax. Investors who do not want to take much risk in the investment can invest in Public Provident Fund.
One can invest in PPF either through lump sum mode or through 12 monthly instalments. The minimum amount of money that should be invested in PPF to keep an account active is Rs 500 and the maximum amount that can be deposited in a year is Rs 1,50,000.