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Best Investment Options in India

2 Mins 22 Jul 2022 0 COMMENT


Every investor wants to make investment plans that involve minimum risks and higher returns. However, investment is all about the correct knowledge of different options, your risk appetite, financial goals and needs. Proper analysis of these factors helps you make an informed decision and generate long-term returns. Here are some of the best investment options in India that can help you make an informed choice.

Best investment options in India

1. Stocks

Investment in stocks or direct equity is one of the best options to generate higher long-term returns if you have a high-risk appetite. Investing in the shares of a company makes you a partial owner in the company’s profits and losses. So, before investing in direct equity, ensure you have adequate knowledge about the stock market and the company in which you are investing. You must know where to invest and when to buy or sell a stock.

2. Mutual funds

If you have no market experience but wish to invest in stock markets, an equity mutual fund is one of the best investment options in India. The investment allows you to reduce market risk as it offers you a diversified portfolio of stocks. Moreover, a mutual fund is easy to understand and buy than investing in individual securities. The fund is professionally managed in which a fund manager helps you make a portfolio as per the fund’s objective. Not only stocks, but you can also invest in other asset classes like debt, gold, etc., with mutual funds.

3. Real estate Investment Trusts (REITs)

Real estate is one of the fast-developing sectors in the economy, which makes investment in the sector lucrative. A real estate investment trust helps you invest in large properties related to housing, commercial, hospitality, etc. The investment trust manages income-generating real estate assets that help you increase wealth with long-term returns. So, without actually buying properties for investment, you share the income growth of properties with the REITs.

4. Gold ETF

Investments in gold ETF are similar to holding stocks where you hold gold units without the hassle of buying actual gold. The prices of the gold units depend on the gold price making the investment more transparent and predictable. Also, gold ETF can be traded on the stock exchange and used as security while availing loans. The investment option comes without a lock-in period where you can exit a gold ETF anytime.

5. Bank fixed deposits

Bank fixed deposits are considered one of the best investment options in India if you want fixed returns with low risks. This investment instrument is not market-linked and is one of the safest investment options. The fixed deposit provides cumulative and non-cumulative investment choices. In a cumulative option, you can reinvest the interest earned on the deposits which are paid at maturity. Whereas in the non-cumulative option, the interest will be paid periodically.

6. Public Provident Fund

Being a government initiative, a Public Provident Fund is a secure investment option. You can open a PPF account in selected Indian bank or a post office.  The investment in PPF is locked for 15 years, but you are able to make partial withdrawals after five years with compound interest earned. You can invest a minimum of Rs. 500 to maximum Rs. 1.5 lakh annually under a PPF. Moreover, availing of loans against investment is one of the major benefits of PPF.  The investment amount and interests earned are tax-free under a PPF.

7. Unit-linked insurance plans

Unit-linked insurance plans (ULIPs) are one of the best investment options in India allowing you to make investments and get insured at the same time. The plan helps provide life cover along with long-term financial savings. A part of the premium goes to insurance coverage and the other half is invested in equity, bonds, etc. A ULIP comes with tax benefits under Section 80 C and Section 10(10D) of the Income Tax Act, 1961.

8. Government bonds

A government bond is issued by the central and state government in India. You can purchase the bonds either at a fixed interest rate or floating interest rate. The investment in government bonds is suitable if you are looking for steady return and don’t want to take default risk.


Investments allow you generate higher returns if you have the right level of patience and knowledge. They can be beneficial in accumulating wealth and providing a secure financial future. However, choosing the investment option that suits you best is essential. So, gather all possible information about the investment option before you consider moving ahead.