Categories: Investment

9 Best Investment Options 2021

9 Best Investment Options 2021

We all want to invest our money in the best investment instruments. Everybody wants to choose the best investment option to get good returns.

We want our invested money to grow very fast and returns should be very high.

You should also read about this: How to open a Demat account online and it is having all investment options.

You should not worried about the best investment options, I am writing this article about “9 Best Investment Options 2021” for you all.

I am sure this will help you out to choose the best option out there.

Remember and keep always it in your mind, “don’t work for money but let the money work for you”

Look at these 9 Best Investment Options 2021 for making good returns from your principal.

1. Public Provident Fund(PPF)

Public Provident Fund or PPF is a saving-cum-tax-saving instrument introduced by the Ministry of Finance’s National saving Institute.

The instrument serves the purpose of mobilizing the saving by providing reasonable interest coupled with tax benefits.

You should also read about this: How to open a Demat account online and it is having all investment options.

It allows an individual to build a retirement corpus while saving on taxes.

The maturity period of your investment is 15 years which is quite long but the returns are also best in this instrument.

Features of PPF Account

The PPF scheme has many beneficial features. We’ve listed some of them here.

Interest at an attractive rate of 7.1% is fully exempted from income tax under section 80C.

Good long-term investment option with a tenure of 15 years.

The minimum deposit amount of ₹500 and maximum deposit amount of ₹1,50,000 in one financial year.

You should also read about this: How to open a Demat account online and it is having all investment options.

Deposits in multiples of ₹50

A loan that can be availed between the third and the sixth financial year

Partial withdrawal facility that can be availed after the completion of five financial years from the date of opening the account.

The option to extend the PPF investment tenure by a block period of five years after the maturity date.

Deposits can be made in the form of cash, cheque, online fund transfers.

2. Equities

Investing in equity is not merely a guessing game.

To play it right and ensure that you don’t suffer unexpected losses, it’s essential to adopt a calculated approach that’s based on research and dependable information.

You are reading article 9 Best Investment Options 2021 and you must read it carefully.

Oftentimes, beginners who are investing in equity for the first time should invest in equity under expert guidance.

At the same time, the risk of losing a considerable portion or even all of your capital is high unless one opts for stop-loss method to curtail losses.

In stop-loss, one places an advance order to sell a stock at a specific price.

To reduce the risk to a certain extent, you could diversify across sectors and market capitalizations.

To directly invest in equity, one needs to open a Demat account.

3. Mutual Funds

A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt.

The combined holdings of the mutual fund are known as its portfolio.

Investors buy shares in mutual funds. Each share represents an investor’s part ownership in the fund and the income it generates.

Investment in mutual funds is less risky compared to equities.

One must choose mutual funds rather than equities if risk-taking capacity is less.

4. National Pension Scheme(NPS)

The National Pension System is a long term retirement – focused investment product managed by the Pension Fund Regulatory and Development Authority (PFRDA).

The minimum annual (April-March) contribution for an NPS Tier-1 account to remain active has been reduced from Rs 6,000 to Rs 1,000.

It is a mix of equity, fixed deposits, corporate bonds, liquid funds, and government funds, among others.

Based on your risk appetite, you can decide how much of your money can be invested in equities through NPS.

Any individual can open a Pension account under NPS through eNPS using one of the following options:

Option – 1 & Option – 2

You must have an Aadhaar Registered Mobile Number.

You are requested to upload Aadhaar Paperless Offline e-KYC ZIP file.

If Zip File is not generated, Click Here to download from the UIDAI website. Please note UIDAI website best support Google Chrome 6.0+ | Internet Explorer 9.0+ | Safari 4.0+

Enter the Share code of 4-characters created at UIDAI website.

You should also read about this: How to open a Demat account online and it is having all investment options.

Demographic details (Name, Gender, Date of Birth, Mobile no., Address and Photo) will be fetched from Aadhaar Offline e-KYC Zip after Successful authentication and other mandatory details need to be filled up online.

You need to upload scanned copy of PAN card and Cancelled Cheque in *.jpeg/ *.jpg/ *.png /*.pdf (unsigned) format having file size between 4KB – 2MB.

For further detail please visit NPS site here.

5. Fixed Deposits(FDs)

We all are very much aware this term FD.

The fixed deposits are much ,ore secure than other instruments so elderly people prefer this option.

A bank fixed deposit is considered a comparatively safer (than equity or mutual funds) choice for investing in India.

Under the deposit insurance and credit guarantee corporation (DICGC) rules, each depositor in a bank is insured up to a maximum of Rs 5 lakh with effect from February 4, 2020, for both principal and interest amounts.

Earlier this limit of insurance was Rs 1 lakh.

6. Senior Citizen’s Saving Scheme(SCSS)

Probably the first choice of most retirees, the Senior Citizens’ Saving Scheme is a must-have in their investment portfolios.

As the name suggests, only senior citizens or early retirees can invest in this scheme.

You should also read about this: How to open a Demat account online and it is having all investment options.

SCSS can be availed from a post office or a bank by anyone above 60.

SCSS has a five-year tenure, which can be further extended by three years once the scheme matures.

The upper investment limit is Rs 15 lakh, and one may open more than one account.

The interest rate on SCSS is payable quarterly and is fully taxable.

Remember, the interest rate on the scheme is subject to review and revision every quarter.

However, once the investment is made in the scheme, then the interest rate will remain the same till the maturity of the scheme.

Senior citizens can claim a deduction of up to Rs 50,000 in a financial year under section 80TTB on the interest earned from SCSS.

7. Pradhanmantri Vaya Vandana Yojna(PMVVY)

PMVVY is for senior citizens aged 60 years and above to provide them an assured return of 7.4 per cent per annum.

The scheme offers pension income payable monthly, quarterly, half-yearly, or yearly as opted.

The minimum pension amount is Rs 1,000 per month and a maximum of Rs 9,250 per month.

The maximum amount that can be invested in the scheme Rs 15 lakh.

The tenure of the scheme is 10 years.

The scheme is available till March 31, 2023.

At maturity, the investment amount is repaid to the senior citizen.

You should also read about this: How to open a Demat account online and it is having all investment options.

In the event of death of account holder the money will be paid to the nominee in the account.

8. Real Estate

The house that you live in is for self-consumption and should never be considered as an investment.

If you do not intend to live in it, the second property you buy can be your investment.

The location of the property is the single most important factor that will determine the value of your property and also the rental that it can earn.

You should also read about this: How to open a Demat account online and it is having all investment options.

Investments in real estate deliver returns in two ways – capital appreciation and rentals.

However, unlike other asset classes, real estate is highly illiquid.

The other big risk is with getting the necessary regulatory approvals, which has largely been addressed after the coming of the real estate regulator.

9. Gold

Possessing gold in the form of jewellery has its own concerns such as safety and high cost.

Then there’s the ‘making charges’, which typically range between 6-14 percent of the cost of gold.

For those who would want to buy gold coins, there’s still an option.

Many banks sell gold coins now-a-days. An alternate way of owning gold is via paper gold.

Investment in paper gold is more cost-effective and can be done through gold ETFs.

Such investment (buying and selling) happens on a stock exchange (NSE or BSE) with gold as the underlying asset.

Investing in Sovereign Gold Bonds is another option to own paper-gold.

An investor can also invest via gold mutual funds.

9. Bonds

A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).

A bond could be thought of as an I.O.U. (I owe You) between the lender and borrower.

It includes the details of the loan and its payments.

Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations.

Owners of bonds are debtholders, or creditors, of the issuer.

Bond details include the end date when the principal of the loan is due to be paid to the bond owner and usually include the terms for variable or fixed interest payments made by the borrower.

Source of Information : Economic Times

You may also interested in: What is a Demat account?


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