Investing is how you control your finances and maintain financial security. Various investment alternatives such as stocks, ETFs, bonds, or real estate provide either growth or income and, in some cases, both. Investing in suitable options in India can help you in living a secure life. With the help of the best investment options, you can make a difference in your wealth. Since there are numerous Investment alternatives, it is normal for an investor to get stuck when selecting one. Along with the regular options, these are the 5 lesser-known investment options you need to start considering:
A Digital Chit fund is an excellent financial instrument for both saving and borrowing. The fundamental advantages of taking part in chit reserves are the simple access one gets to an enormous entirety of cash, the adaptability to call when the need emerges, preferable rates of acquiring over conventional advances, and preferred return on investment over bank items for savers. There are numerous Chit Fund companies & platforms in India to choose from for an effortless investment.
The government operates a national Pension Scheme (NPS) to promote your retirement needs and simplify it to save a predefined amount every month. Though the masses widely used NPS till the 90s, the scheme has lost some of its popularity in the new millennium. The NPS is open to those in the 18-60 years age bracket and is a simple scheme where you can contribute monthly to get a return after retirement.
The Sukanya Samriddhi Account is attractive to educate a girl child and the returns and the available tax benefits. If you are considering saving up for your daughter’s education, this account can be very effective. Not only does it play an attractive rate of interest of 8.4%, but it also gives you the benefit of Section 80C, which provides you with a tax rebate of 30% of the invested amount each year.
These are subsets of mutual funds but have some unique characteristics that can add value to customers. Opportunity funds are just like average equity funds except that the fund manager has much more leeway in-stock selection, sector mix, market cap mix, etc. FMPs are fixed maturity plans for a specified period like one year, three years, or five years. MIPs are structured to give regular monthly income from a debt fund. They are more tax efficient as the returns get split up into returns and redemption.
Real Estate Investment Trust or REITs is a scheme much like mutual funds, but the underlying asset is real estate. REITs deal mainly with infrastructures like malls and other public properties. Real estate investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are similar to mutual funds. The only difference is that the underlying asset is either real estate properties or infrastructure assets.
The basic rule to make an intelligent investment is to understand different investment options and start investing as soon as possible. The earlier you get started and the longer you stay invested, the more returns you earn on your investments.
Aatish Khanna works with the Content Marketing team at Money Club,a digital chit fund platform that makes saving, borrowing, and investing your money more efficient. He writes on topics to help his readers understand processes so they can make better financial decisions. He’s the go-to person that his family, friends, and colleagues turn to for all their money matters. He loves to play board games and aspires to one day build his one finance-related board game and app.