Smart Way To Invest Money In India

Whenever you are going to invest your money invest in such a way that you can get highest returns. Keep in mind risk losing principal and invest in profitable scheme. Most investors keep their eyes on the plans that can double money in few moth or years without any risk.
Risk and returners go hand in hand there is no ideal project or plan with 100% surety . Unfortunately high returned plan comes with higher risk and low returned plan comes with low risk.

There are two category of investment products financial and non- financial assets.
 

Financial assets      &

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                           Smart Way To Invest Money In India

Whenever you are going to invest your money invest in such a way that you can get highest returns. Keep in mind risk losing principal and invest in profitable scheme. Most investors keep their eyes on the plans that can double money in few moth or years without any risk.
Risk and returners go hand in hand there is no ideal project or plan with 100% surety . Unfortunately high returned plan comes with higher risk and low returned plan comes with low risk.

There are two category of investment products financial and non- financial assets.
 

Financial assets                                                                                                                                                                                                 

A) Market linked products: Mutual fund and Stock
b) Fixed income products: Bank Fixed Deposit, Public Provident Fund

Non financial assets

Physical gold , Real state

Few Investment Avenues for Financial Goals
 

Real Estate

Real Estate is highest employment generating sector in the country. Real Estate contributes 7 percent to the GDP. Nationwide lockdown broke the supply chains and create overseas procurement .  Real sector face liquidity issue and shortage of labor. But after vaccination process started real state sector is growing  again. so now It is good idea to invest in real estate in 2021

Top 5 cities to invest in India according to experts are Bangalore, Mumbai, Ahmadabad, Hyderabad, Delhi.
 

Direct equity

Investment in stock is little risky because of no guarantee returns. Stock is volatile assets. For direct investment in equity you need to open demat account. It is difficult to right stock at right time and exit is also not easy.

Equity Mutual Funds

It is mutual fund that invests principally in stocks equity fund can managed actively and passively both. It is also know as stock fund. Mutual fund can be risky but with careful approach losses can be avoidable. Returns depend on fund managers ability to generate returns.

Types of equity mutual funds are

Investment strategy-based categorization

Market capitalization-based categorization

Tax Treatment-based Categorization

Investment Style-based categorization

How equity mutual fund works

As per SEBI Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65 percent of its assets in equity and equity-related instruments. Fund manager can choose to invest in a growth-oriented or value-oriented manner and select companies according to his assessment of the investment generating maximum returns.

Debt Mutual Funds

This schemes are suitable for investors who wants steady returns compared to equity funds debt mutual funds are less risky. Debt mutual funds are less volatile. There is security of fix interest generation. Debt mutual fund invest in Corporate bonds, Government securities, Treasury bills etc.

National Pension System (NPS)

NPS is voluntary and long term investment plan. It is basically plan for retirement. It is a social security initiative by the central government. It is under purview of pension fund regulatory and development authority( PFRDA) and central government. This scheme is open for all except for armed forces. All employees from public or private sector or from unorganized sector can take benefit of this scheme.

Minimum annual contribution to remain active NPS Tire-1 account is reduced from 6000 to 1000. You can decide how much money you want to invest.

Public Provident Fund (PPF)

PPF is a long term investment scheme for those who want to earn high but stable returns. it is good for individual with low risk appetite. PPF account is for long tenure of 15 years on investment. Before 15 year we can not withdraw fund completely. Lock period can also be extended for 5 years before over. Annual investment can be from 500 to 1.5 lack.  every year investment is mandatory to remain account active. Investors are eligible for 12 yearly installments payments into PPF account. PPF provides the benefit to take advantage of loans against the investment amount if it is taken at any time from the beginning of 3rd year till the end of the 6th year from the date of activation of account.

Bank Fixed Deposit (FD)

Fixed Deposit is amazing way to grown your saving with maximal safety. In fixed deposit you lock your money for fixed amount of time. You can earn interest on the principal throughout the tenure on a cumulative basis.  After every specific interval earned interest gets added to the principal amount. Senior citizens are eligible for more than the existing rate. usually 0.25% to 0.65%. 

Types of fixed deposit account are

Normal Fixed Deposit

Tax- Saving

Senior Citizens

Cumulative FD

Non-Cumulative FD

Flexi Fixed Deposit

Fixed deposited are safer than other investment plan

You can earn interest in fixed period of time

There is no cap on maximum deposit

Senior citizen can get additional rates benefit

Senior Citizens' Saving Scheme (SCSS) 

Scss is scheme for senior citizens of India. This scheme is appropriate choice for senior over 60 year of age. Scheme offer regular income with tax saving benefits. Scheme provide long term long term saving. Scheme is available by post office and certified banks. Retirees who opted VRS or superannuation in age 55-60 are eligible for this scheme. defence personnel with age 50 are also eligible but HUFs and NRIs can not take benefit of this scheme

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

This is a pension scheme for senior citizen announce by government of India. This scheme is now extended up to 31 St march 2023 for further period of three years beyond 31 march 2020.

For PMVVY Following documents are required

Aadhar Card

Age Proof

Address Proof

Passport Size Photo

Documents of Retirement Proof

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