Have you decided to make an investment? If yes, it can be a great choice, especially when you choose to invest correctly from where you can get amazing returns. It is never a great idea to lock your funds but choose the correct ways to make investments that would provide greater returns.
While there are so many options available in the market, it can be really tricky for any new investor to make an investment. However, before we start looking for the best investment plans that would yield higher returns, we will take a look at the significant advantages of starting to invest money.
What are the major advantages of choosing investment plans?
When you make a proper investment, it can be greatly helpful in growing your savings much faster than any other scheme. The following are the prime advantages of choosing a property investment plan.
- You can be able to manage the income properly by keeping it in another source
- You get more understanding of the net financial worth, which can be improved when you choose the right investment plans.
- It helps you to reach your financial goals by adequately aligning your money with the right investment plans.
- It helps to improve your worth and quickly get rid of debts.
Only when you choose the right financial plan that helps you to increase your money, will you be able to reach your financial goals. However, it is imperative to make the right choice before investment to eliminate any kind of risk. So here we will find out the best investment plans that provide great returns.
Top 4 Investment Plans
A recurring deposit is an excellent choice, as you can make regular monthly investments for a specific tenure. The bank or financial institute you choose for recurring deposits will add the interest according to the market that gets added to the funds. Recurring deposits are chosen as a great way of investment available in the market. The primary intention of choosing recurring deposits is to mobilize savings and get great returns from your investment to meet different financial goals. The interest rates are calculated quarterly or as mentioned by the financial institution that you choose.
SIP (Systematic Investment Plan)
SIP is another safe choice for investing money. A systematic investment plan is a way where you choose a certain amount that will be deducted from your bank every month. SIP is a long-term investment plan that helps you to make huge investments by the end of your tenure. You get great interest rates, and you can start with a minimum amount of Rs.500 every month. There are multiple advantages of SIP, and it is a great way to save your money for a greater future intention.
Mahila Samman Savings Scheme
The latest Mahila Samman savings certificate scheme is again an excellent way to invest. However, this is only for women or girls. Taking part in this scheme provided by the government of India will become a great choice for a short-term investment plan. You can deposit a minimum of Rs 1000 to a maximum of Rs.2,00,000 in the course of two years. With a 7.5% interest rate per annum, you can get great returns from your invested money.
FD (Fixed Deposits)
Fixed deposits are another safe and stable investment option for people. It is greatly recommended to choose a fixed deposit because it can provide higher returns by choosing proper FD schemes and help people enjoy easy renewal to get more returns. You also don’t have to be worried about depreciation in the principal amount as it is not susceptible to market fluctuations. However, you have to make sure that you choose a financial institution offering great interest rates against fixed deposits before you decide to go for it.
PPF (Public provident fund)
Public provident fund or PPF is controlled by the government of India. One can avail of the benefits of a PPF account through banks and post offices. This is a long-term investment plan that can be stretched to 15 years of tenure. However, it starts from seven years. Everything from its maturity amount, interest, and principal invested is tax-free. The interest rates were revised quarterly and are greatly dependent on government bond yields.
You can also choose debt mutual funds with a higher maturity period. This generally ranges from 90 days and can be extended to 3 years. As it is slightly longer, you can stay assured that the investment funds remain protected against any kind of reduction and fluctuation in the interest rates. This is why these are considered much more stable than any other funds. Additionally, you can get great returns on short-term debt funds compared to fixed deposits. But you must keep in mind that market volatility can affect these funds.
Choose an Investment fund correctly
While there are several other investment plans that you can choose according to your requirements, these four are excellent choices for people as they have low risks and higher returns. However, irrespective of the type of investment plan to use, remember it always is determined by any financial institution that you are choosing. With the right institution or bank, you can get excellent services, easy access to funds, and enjoy higher returns.