Earning: Whether the Monitory things or the feelings, both needs growth with the flow of time. Money should be grow which will helps us to fulfill our needs and relations/feelings must grow to get support in difficult times. In todays world, feelings and relations comes with Money. If you have money and have good wealth, everyone will be yours otherwise no one will come closer to you. Money is like magnet which attract everything.
Money needs continuous growth. Everyone can earn good amount of money through Job & Businesses but the main purpose is not just earning. The main aim is get the Idea how to grow that earnings in best way to increase the Returns on that amount. Choosing the best method of investment and continuous investment on that option is the key to increase your wealth.
If you have started the new job and started earning good amount but spending all the money in Party, buying useless things etc. (without any investments) then this tends to Financial Crisis. Always try to Invest a small part of your earnings in some place which secure your and your family's financial Life as well as you can enjoy your current life without the fear of future uncertainties.
What are the benefit of Investments?
1. Investment secure your savings and will provide you amount in case of difficult times
2. Investments helps to manage instant funds in case of any emergencies
3. Investment gives you regular Incomes
4. It helps you to tackle with Inflation
5. Investment provides you continuous earnings which helps you when you have business crisis of Job Crisis. It works as backup
6. Investment always increase your confidence and makes you confident in Financial Aspects
7. Your family doesn't need to face any financial problem if something bad happens to you
8. It helps you to cover medical expenses in case of illness etc.
So, Today we are sharing with you the 10 best Investment Ideas available in India through which you can earn good returns in Short Term as well as in Long Term and increase your wealth:
(1) PF (Provident Fund): Provident Fund is the Government Scheme where certain amount (approx. 12%) of the basic salary (per month) will be deducted by your employer from your salary and deposited in your separate Provident Fund Account. The employer will also deposit the same amount in your account from their side. Also you will get per month interest in those deposits. The rate of interest in PF is 7% to 9% which is best at this time.
Let's Understand with an Example: Let's say your Employer deducts Rs. 1,000 from your salary and deposits in your PF Account every month. Also he deposited Rs. 1,000 from their side. Now you have 2,000 Rs. in your PF account on which you will get monthly interest.
For the short term, you will think that the interest is low. But if you continue the same account for longer term then it can gives you lots of return because you are receiving extra amount from Employer and also earning Interest on it.
Estimated Figure: If Rs. 10,00,000 deposited in your PF Account throughout your Employment and your age is 25 now, then you will get 90,00,000 when you retire (9 times of returns on investment). We are sharing herewith the PF Calculator for your reference where you can calculate the estimated earnings by putting gross estimated amounts: Click Here
But keep in mind that you need to avoid partial withdrawal of amount during the employment. If you withdraw any amount during the employment, then the return will be less in amount.
So, try to keep your PF account for longer term and withdraw amount only if there if super emergency
Note: Investment in PF depends on Employer. If your employer is not registered under PF act then don't worry, we have also provided the similar investment methods below for those who are not able to invest in PF account
(2) PPF (Public Provident Fund): Public Provident Fund is similar investment option as Provident Fund with some changes. Public Provident Fund has been introduced for those whose employer is not registered under PF Act, but employees with PF account can also invest in PPF as well. PPF is publicly available Provident Fund account which can be opened by any citizen of India. There is no role of Employer in PPF.
You just need to do the following to start investment in PPF:
(a) visit any Bank (We prefer Govt. banks rather than Private Banks),
(b) Open your PPF Account by filling required forms (If you have Internet Banking then you can open PPF online as well),
(c) Invest minimum 1,000 to maximum 1,50,000 in your account (as per your earnings and savings),
(d) Repeat these investments each year,
(e) wait for 15 years (because there is lock-in period in PPF where you can't withdraw amount before 15 years but there are some exceptional cases available where you can withdraw amount after 3 years by mentioning the reasons)
Benefits of Investment in Public Provident Fund:
(a) Anyone can open and invest in PPF
(b) There is only minimum Rs. 1,000 investment required to regulate your account (every year)
(c) You can also get Tax Exemption of maximum invested amount of 1,50,000 in Income Tax
(b) Interest received from PPF account is Tax free. It means you don't need to pay tax on it
(e) Best investment option for Long term because it's secured with Government and there is no fear of Losing money
(f) You can invest money in installments also (monthly, quarterly, half yearly etc.)
If you invest minimum 10 lakhs for 15 years, then you will get the return of extra 10 Lakhs after 15 years. It means your amount will be get doubled in 15 Years
We are sharing herewith the PPF Calculator for your reference where you can calculate the estimated earnings by putting gross amount: Click Here
(3) NPS (National Pension Scheme): NPS is the most profit earning investment methods in nowadays but it has some risks because 50% of the amount Invested in NPS goes under investment in Stock Market. We know that Stock Market is the place of uncertainties because of which it makes NPS a little risky
But, the returns comes from the risks taste the best. It doesn't means NPS will not going to provide you good returns. Even there is loss in Stock Market, then it has also the ability to provide you more returns then PF & PPF. In NPS, you have to invest the amount till the age of 60 and then you can withdraw some part of investment in bank and remaining amount will be receive to you as monthly pension. NPS has been introduced by the government for the secured Old Age. If something happens to you before the age of 60 them your nominee will get the matured amount
You can open NPS account Online from NSDL Website. Open the account, Deposit the amount as per your availability and repeat the investments every year. After the age of 60 Years, you will get your returns which makes your old age life simple and easy
A monthly investment of 1,000 (suppose you age is 30 years now) in NPS will provides you the return of 40 Lakhs when you turn 60. Isn't it good investment? If you increase the monthly investment to 5,000 then the maturity amount will be 2 Crore.
We are sharing herewith the NPS Calculator for your reference where you can calculate the estimated earnings by putting gross amount: Click Here
(4) Bonds: Bonds are like a Loan given to Borrower but it termed as Investment Type where we investment in Bonds of Various Companies and in return, we will get some fixed rate of interest once the maturity period will over (in most of the cases this time is 5 years)
There are many bonds which are famous like NHAI Bonds, RIL Bonds etc. Government and the private institution offers Bonds to the normal public and assure the fixed rate of return. The Bonds will gives you returns of 9% to 12% (depends on the companies)
Most of the Government Bonds are Tax free. It means you don't need to pay tax on its interest. There are also some bods available which are taxable (these types of bonds offers higher interest rates as compared to tax free bonds). You can also get Tax Deduction in Some investments in Bonds as well
You can check many Websites like: IIFL Finance, NHAI Bonds, RIL Bonds, through Depository Participants like Zerodha, ET Money etc.
(5) Property (Real Estate): If you have lots of money in hand and want to invest in a place which will gives you instant returns in Short Term, then Investment in Real Estate is best Option.
With increasing Population in the world, the requirement of land has been increased and with increment of demand, the price of the Property also increasing. There was a time when a Single property cost 1 lakhs but today the same property valued more than a crore. The prices of property never decrease. It may still constant but as per the previous trend, it never decreased.
Investment in Real Estate includes Purchase and Sell of Land, Building, Plot, Flat, Farm Houses etc.
(6) Gold: The best investment options of our parents which gives beauty to the person and as well as the home available safest investment which always helps in case of any emergencies.
In year 2000, 10 gram of gold priced only Rs. 4,400 and now it reached and crossed 50,000. It means if someone purchased 1 kg of gold in 2000 worth Rs. 4,40,000 (4,400*100), he/she is now the owner of Rs. 50,00,000 (50,000*100). The absolute returns of 1100%
Gold is scare resource and hard to find because of which it always increases its value day-by-day
So, if you are thinking about to invest in Physical Gold, then you can invest now and left for longer period.
The longer you wait, the hotter you date (LOL). It means longer period investments in gold gives you more returns
Also, today Gold Bonds & Virtual Gold investment also available where you can invest in pure 23.99% gold without the physical existence of gold. It has been also approved by the government so there is no need to worry about it's authenticity
(7) Mutual Fund: With increase in Awareness and knowledge about Stock Market Activities among people because of Awareness Programmes and Television Advertisements, People started investing in Mutual Funds.
In Mutual Funds, any company registered in Stock Market takes the small amount of funds from the single Investors and invest the whole amount in Stock Market with the help of Research and Talented Fund Managers.
Instead of buying shares on our own, we provides the amount to fund managers of other companies and they will invest in Stock Market. Here, the experienced Fund Managers are investing the amount which assures the guaranteed returns. Then the returns received from that invested will be distributed among Mutual Fund Investors who invested in that Company's Mutual Fund
Lets Understand Mutual Fund with an Example: We have started SIP (Systematic Investment Plan) in Mutual Fund of Axis Bank. Like us, other many people done the same. From This activity, Axis bank received lots of funds and they invested that amount in other places such as Bonds, Debentures, Providing Loans and Stock Market through experience Fund Managers. When Axis bank will receive income from that investment, they will distribute that income to Mutual Fund Investors (among us) after deducting their portion of Profit
There are many companies who provides Mutual Fund Schemes. You can register yourself with any Depository Participant and start investment in Mutual Fund. You can invest from minimum Rs. 100 to maximum as per your limit/savings
One thing keep in Mind, you can withdraw your amount anytime from Mutual Fund but if you want huge returns then suggesting you to keep investing for minimum 5 years. Longer the Mutual Fund, higher the returns.
Some of of best Mutual Fud Schemes are as follows: Axis Bluechip Fund, Mirae Mutual Fund, Canara Robeco Mutual Fund, HDFC Bluechip Funds etc.
Note: Investment in Mutual Fund consist market risk. Please go through all documents, clear your all doubts and then start the investment
(8) Stock Market (Equity Market): If you have knowledge of Stock Market, its functioning and its Procedure then you can invest and earn good income in Short Term as well as in Long Term
Schemes like Future & Options gives you the opportunity to get instant income in just a day but this needs lots of Market & Technical Analysis, knowledge and experience
So, another method to invest in Stock Market is to invest in those companies which are famous, which have profits since many years, ranked top companies in India, having huge functioning in Indian as well as outside India, the companies who provides services which are essential for human beings etc.
Some of these Companies are: IRCTC, Colgate, Reliance, Infosys, Tata Motors, Banking Companies etc. These company's functioning affects us in daily life. It means the goods and services provided by these companies will never ends because they are providing basic services in society.
The best method to invest in these companies is to start SIP and invest a small amount every month for long term investment purpose by buying shares. Once day the amount will grow and gives you absolute huge returns.
But keep in mind, the share prices of companies affects in market activities and uncertainties. So, keep track your investment status on daily basis and whenever you finds that the situation is going down and share price also falling continuously, left the market with the profit available that time.
We have already mentioned a best short term investment method called IPO in our previous Post. You must read that. We assure that you will going to find the post very very useful. Click Here to read
(9) ELSS Mutual Fund Scheme: ELSS (Equity Linked Saving Schemes) are part of Mutual Funds which can gives more than 10% of annual returns. The Lock-in-period of ELSS are 3 years and amount invested into ELSS also gives the Deduction u/s. 80 C while computing Income Tax.
There is no limit to invest in ELSS but monthly SIP will be beneficial because ELSS linked with Stock Market and putting all of your savings in one place like Stock Market is not a wise decision because it's the most uncertain place for investment.
More than 60% of the investments goes into Equity Oriented schemes. It means the higher risk but at the same time Equity Investments always gives you highest returns than others.
(10) Fixed Deposits or Recurring Deposits: Fixed Deposits and Recurring Deposits are the best rick free investments in India, followed by most of the Indians. Fixed deposits gives you risk free interest in minimum investment.
But interest received from Fixed Deposits are too low as compared to other Investment methods. People invest in Fixed Deposits because they are risk free but if you are investing for the higher returns, then please avoid Fixed Deposits and start investment in other above mentioned methods.
The present rate on Fixed Deposits are 5.4% for 1 Year. Previously the rate of Saving interest was 6% which was more than the present rate of Fixed Deposit. Fixed Deposits are safe but not that helpful for long tern investment.
If you don't want to take risk in Equity Markets and also don't want to freeze amount for more than 15 Years then Fixed Deposits is best for you to get required interest in short period
Hope you are now aware about the best investment opportunities in India. Think about the opportunities, available funds with you and invest in best place to get the best returns
Also, do comment your valuable thoughts about our work and if you think that the article is helpful then please share with others as well
Thanks & Regards
Team: Online Knowledge Zone
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