While growing up, for the longest time, most of us believed that the money plant in our house will grow cash for us in the future. Though, it would have been great had that belief was true, the reality remains the same- we all want to see our money grow!
So, if you are looking to grow your wealth, investing your money in different schemes can be a brilliant option provided you make the right investment decision, at the right time.
India is a land of savers and not many investors. According to a report by New Indian Express, ‘only 2% of the Indian population participates in equity markets directly or through mutual funds due to their risk-averse nature.
Most of the Indians are always on the look-out for a high-return, low-risk combination in an investment plan. Unfortunately, it does not exist, at least not in the real world.
So does that mean you should not invest? Certainly not! Here are 3 top investment plans to look at while reaching for your financial goals:
- Debt Mutual Funds
Do you want steady returns? The Debt Mutual Fund schemes are for you! These schemes are less volatile and involve less risk as compared to equity funds.
Debt mutual fund primarily invests in fixed-interest generating securities like government securities, corporate bonds, commercial paper, treasury bills, and other money market instruments.
- National Pension System (NPS)
Managed by the Pension Fund Regulatory & Development Authority (PFRDA), NPS is a long-term plan focused on retirement. This investment scheme is a mix of equity, corporate bonds, fixed deposits, government funds, and liquid funds among others. The minimum annual contribution has been reduced to INR 1,000 for an NPS Tier-1 account to remain active.
- Public Provident Fund (PPF)
The Public Provident Fund is one of the most popular investment schemes that every Indian turns to. The scheme has a long tenure of 15-years. Thus, it offers huge tax-free compound interest. One of the major reasons behind its popularity is that it is a safe investment as it is backed by a sovereign guarantee.
Some of the above-mentioned schemes are fixed income while others are linked with the financial market. Where fixed-income schemes help to preserve your savings, market-linked investments offer high returns and high risks too.
However, for a long-term financial goal, it is important to make use of both worlds. Hence, make informed decisions by keeping time duration, taxation, and risk in mind. You can understand the in-depth stock market knowledge with our problem-solving courses. To know more, click here: https://www.badabusiness.com/psc?ref_code=ArticlesLeads
