Top 5 Investment Options in India

Investment Plans available in the Indian capital market is a great blend of risk-reward transactions. And, it’s very important for every investor to acquire detailed understanding of the economic trends. This will not only help him in decision making, but also in creating a diversified investment portfolio depending on the different investment plans in India.

Here, we are going to discuss the 5 most credible investment plans available in the Indian Capital market. But, you need to keep in mind that very investment plan come with some risk.

Fixed Income Instruments:

This is the type of investment that delivers a fixed amount of return to the investor after a certain period of time. Compared to other form of investment plans fixed income instruments are low risk options. Some of the examples of fixed Income Instruments are – Public Provident Fund, Post Office Savings Scheme, Certificate of Deposits, Corporate Fixed Deposit, Corporate Bonds & Debentures, and Government Bonds.

Equity:

Equities are shares of companies and are offered through Initial Public Offerings (IPO) and Follow On Public Offerings (FPO). You can invest in equities either in the primary market or the secondary market. Return on equities come in two forms, dividends paid to the shareholders and capital gains from the increase in share price of the company.  Returns from shares are not guaranteed and they are mingled with high amount of risk.

Mutual Funds:

Mutual funds have different lock-in periods and before investing in mutual funds, you are recommended to check the return history of funds say about them. There are many websites that provide detailed analysis about the performance of mutual funds. On an average Mutual Funds can get you returns between 12 – 30% percent depending on market risk.

Gold & Silver:

Due to ever rising value of precious metals, gold and silver have become attractive investment options. However, these types of investments are definitely not free from risks. At the time when you want to claim your deposited gold 0r silver the price associated with them may not be moving upwards in the price ladder.

Real Estate:

Property has always been a great investment option. Ever since the price of property sky rocketed in the Indian Market, more and more people are getting interested in it. Improved facility of home loans and smaller area apartments being available, you can now invest in property with much lesser funds than what was required earlier.