Investing plays a key role in securing many people’s financial future, which is why its importance cannot be overstated. There are several benefits to investing, including earning an additional income, planning for retirement, and even being able to pull you out of a financial bind in the future.
Undoubtedly, investing is one of the best ways to achieve your financial goals and increase your purchasing power over time. If you have enough funds in your account, it is advisable to allow those funds to work for you by finding out the investment in popular schemes.
Listed below are types of Investment plans you can consider for your portfolio
Corporate bonds
Corporate bonds work the same way as government bonds, but they are issued by private companies, not by the government. Because the government doesn’t back these bonds, they are a riskier option to consider. It should also be noted that high-yield bonds can carry a significantly higher level of risk, taking on a risk-return profile that is more similar to that of stocks than bonds.
Exchange-traded funds
Mutual funds pool investor money to buy a collection of securities; exchange-traded funds, or ETFs, are similar to mutual funds in that they pool investor money to provide a single diversified investment for investors. In terms of how ETFs are sold, they are just like stocks in that investors buy shares of the fund just as they do when buying individual stocks in the market.
National Pension Scheme
You can invest in a National Pension Scheme to prepare for retirement as it is one of the most popular pension plans in India. The National Pension System is a government-backed scheme governed by the Pension Fund Regulatory and Development Authority.
With the NPS pension plans, you can have a substantial retirement corpus at your disposal once you retire and are no longer working. In addition, salaried or self-employed investors can invest in pension plans such as NPS as a retirement savings tool.
Public Provident Fund
The PPF is one of the best government-backed long-term savings or pension plans that provides an attractive rate of interest, as well as a reasonable return on investment.
There are various nationalised banks and post offices where you can open a PPF account. You can earn risk-free returns with a PPF. There is no restriction on who can invest in PPF except non-resident Indians.
Bank Fixed Deposits
In India, Bank Fixed Deposits have been a trusted investment plan for years. Long-term Fixed Deposit accounts allow you to save lump sum amounts for a specific period and offer a guaranteed return on the investment. Upon opening the Fixed Deposit account, a fixed interest rate is applied, and the rate remains the same throughout the tenure.
Therefore, investing in a Fixed Deposit scheme will provide you with guaranteed returns. However, it is important to note that senior citizens are eligible for higher interest rates than standard FD schemes. Fixed deposit act as one of the best pension plans for senior citizen.
Mutual Fund
One of the popular investment options in India is mutual funds, considered one of the most efficient investments that offer high returns on investments over the long term. Market-linked investments are an investment alternative in which money is invested in various financial instruments, such as equity, debt, stocks, funds, etc.
It is important to note that the returns generated by the fund are based on the performance of the market. As a result, even though mutual fund investments involve a higher level of risk, they are still one of the best investments in the market as they offer much better returns than other investment options.
RBI Bonds
RBI Taxable Bonds have a maturity period of seven years, and the interest rate charged on them is 7.75 percent per year. Investors receive a Certificate of Holding as proof of their investment. The bonds are issued for a price of Rs. 1000.
In the case of the cumulative option, it is possible to access the reinvested interest as regular income, while in the case of the non-cumulative option, it is possible to access the interest as a regular income.
Final Thoughts
When it comes to making a wise investment in the best saving or pension plans, it is usually a good idea to keep an eye on the various types of investment options available on the market to make the right decision. Most investors claim that when they invest, they are looking for a specific purpose, which can vary based on their financial objectives, time frame, level of risk, etc., that they have set for themselves. Consequently, anyone looking to grow their money will have to make wise investments that will result in lucrative returns over time.