What Are the Best Investment Options in India?

Written By Alla Levin
June 10, 2020
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What Are the Best Investment Options in India?

Becoming rich and financially successful is a dream of many individuals. There are many ways that you can earn a lot of money.

But investing is really a great way to earn money because in investing you don’t have to work; money is going to work for you.

There are many investment options available, but people prefer only a few according to their requirements.

If you want to invest your money, then it is advisable to know about different investment options around you.

Here in this article, we are going to understand different investment opportunities within India for 2020.

Investment options in IndiaInvestment options in India

Generally, investments are of two types such as financial products and non-financial assets.

There are different types of financial assets such as stocks, mutual funds, bank deposits, etc.

On the other hand, non-financial assets are gold, real estates. Another special kind of investment is the digital currency which is now legal in India.

Now let us understand different investment options in detail.

Direct Equities or Stock Market

Investing in direct equities is not the best option for everyone. Because the stock market is volatile in nature and there is a chance of losing money in the market.

Moreover, it is not only difficult to choose the right stock, there are more things to it such as the entry point and exit point in the market.

Choosing the right stop-loss according to the risk-return ratio is essential in investing in the equity market. Most of the long-term investors profit from the stock market.

However, with the spread awareness, people are getting into short term trading, day trading, and derivatives markets such as futures and options.

Mutual Funds

As compared to direct equities, mutual funds are less volatile and less risky too. If you want steady returns, then choosing the right mutual fund can meet your requirement.

Mutual funds offer different investment plans based on risk and terms of deposit. There are low, medium, and high-risk portfolios available in mutual funds that can be used as the best option for investment.

There are two major plans such as a systematic investment plan where and lumpsum. In lumpsum, you need to invest a significant amount once at a time.

Whereas, in SIP, you need to pay a monthly amount as a part of the investment plan.

Bank Fixed Deposit or FD

A fixed deposit is safer than both mutual funds and equities. It offers interest on a fixed amount deposited by the investors.

Mostly, elderly people choose this option as they don’t want to take any risk on their wealth.

To receive the interest, you can opt for monthly, quarterly, or yearly options from the bank.

Alternative Investments

The above are the major financial options. Now let us focus on some alternative investments.

Gold

Investing in gold is also a possible option but there are some reasons people don’t want to possess gold.

Because acquiring gold ornaments has safety concerns like theft. However, traditional people still buy gold coins and store them to gain profit later when the price increases.

Digital Currency

There is chaos in the market about digital currency. Initially, there were many disputes regarding the legal status of investing in digital currencies like bitcoin.

However, many people are now investing in bitcoin and in other cryptocurrencies too. If you want to invest in cryptocurrencies, https://bitcoin-rejoin.com/ provides a great platform.

Conclusion

The above investment options are the most popular in India. If you want to grow your money, then choose any of the investment options.

Or you can also choose a few of them to invest in different asset classes to manage your risk.

If you are not sure where to invest, then you can seek help from a fund manager or financial advisor who can help you to build an investment portfolio.

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