Last Updated on Nov 24, 2023 by Anjali Chourasiya
With the uncertainty the world has faced in the past few years, investors are now moving towards long-term investment options. These options can help you build wealth, hedge yourself against inflation, and take advantage of potential tax benefits. Here are the ten popular and best investments where you can invest money in India:
- Mutual funds
- Fixed deposits
- Real estate
- Saving schemes
- SIP mutual funds
In this article, let’s understand each investment option and learn how to find the best investment option for your portfolio.
10 options where you can invest money in India
Here are ten options where you can invest money for good returns in India.
Stocks are one of India’s most popular investment options. It is preferred by investors looking for long-term options with good returns. However, it is important to note that investing in stocks involves risk, and you need to invest only if you understand the market well. As an investor, you need to do proper research before investing in stocks.
There are different types of stocks, like growth stocks, value stocks, etc. All these stocks can be filtered according to key parameters like market cap, net profit, etc. You must understand which sector the stock belongs to, management, market scenario, etc.
You can use Tickertape’s Stock Screener to find the best stocks in India. With Tickertape’s 200+ filters, you can quickly and easily narrow down your search to find stocks that meet your specific criteria. You can also create custom filters to find stocks that meet your exact needs. In addition to this, you can also create a custom stock universe to focus your search on a specific group of stocks. This is a great way to save time and focus on the stocks that are most relevant to you. Start your search for the best investment opportunities today; explore the screener now!
To understand deeply how to invest in stocks, read this article.
2. Mutual funds
Mutual funds are a common pool of money invested in multiple assets like equities, bonds, etc. A fund manager manages it. It allows you to diversify your investment portfolio, which can help you mitigate risk.
There are different types of mutual funds: debt, growth, hybrid and more. The fund manager considers your investment objective and risk appetite and invests in a fund that suits you. They are preferred for both long-term and short-term investment horizons.
Yet again, similar to stocks, there are various mutual funds in the market. But Tickertape comes to your rescue. You can use Tickertape’s Mutual Fund Screener to filter the best mutual fund according to key parameters like assets under management (AUM), net asset value (NAV), annual returns and more. There are over 50 filters, custom filters, a custom mutual fund universe, pre-built screens, custom screens, individual fund analysis, a mutual fund watchlist, and more. Learn How To Use Tickertape Mutual Fund Screener To Pick the Best Fund.
One of the many benefits of investing in mutual funds is that you can avail a loan against mutual funds. To understand how to find the best mutual funds and ways to invest in mutual funds, read this article.
3. Fixed deposits
This is one of India’s traditional and popular investment options. Fixed deposits (FD) are one of the first results that come to your mind when someone asks where to invest money in India. The reason behind its popularity is the minimal risk profile with decent returns.
Fixed deposits are offered by banks, post offices and Non-Banking Financial Companies (NBFCs). They are suited for your lump-sum investment to grow and also offer interest at regular intervals. The interest rate on FDs varies with the bank or the NBFC. You can leverage your investment in fixed deposits by availing a loan against them. Read more about it here.
This is one of India’s oldest and most popular investment options. Gold is considered an auspicious metal in India and is known for its value appraisal benefit. It acts as a hedge against inflation and is considered a low-risk investment.
The traditional way to invest in gold is through ornaments, coins or bars. Recently, several gold investment options like gold deposits, gold ETFs, and gold mutual funds have come up. If you are wondering if digital gold is a good investment, then find out your answers here.
With many gold investment options available in India, it is difficult to understand each investment and how to invest in them. Well, don’t fret; we have created a guide for you to understand how to invest in gold. Read it here.
You can start your journey of investing in Digital Gold on Tickertape in a few easy steps: enter the amount you want to invest in, start a habit of investing or investing one-time, and voila, you’re done. It’s that easy; you can keep a check on your gold investment by tracking them on your portfolio on Tickertape.
You may also like to read 5 Reasons to Invest in Digital Gold.
5. Real estate
Investing in real estate is also one of the popular investment options in India. Though it involves a good amount of investment, its returns are huge. You can get returns either when you sell it or monthly in the form of rent. But while buying or selling, ensure to consider all the related charges like registration fees, property taxes, and more. It can be considered a good investment option for the long-term horizon.
Similar to individuals, companies or governments need money to grow and develop. To raise funds for their company, they offer bonds. You can buy those bonds for a fixed interest and tenure. It is considered a low-risk investment option in India, especially when they are government-backed. Learn more about bonds here.
7. Saving schemes
As the name suggests, saving schemes help you save your monthly income for a period of time, which turns into a big corpus. These are backed by the government, banks or financial institutions. The savings scheme has a lock-in period and encourages you to save regularly. They are considered low-risk, long-term investment options that don’t require a lump-sum investment.
Employee Provident Fund (EPF), National Pension Scheme (NPS), National Savings Certificate (NSC), Post Office Savings Account, Senior Citizen Savings Scheme (SCSS), etc. are a few popular savings schemes in India.
8. SIP mutual funds
Well, you know about mutual funds, but did you know that all mutual funds don’t require a lump-sum investment amount? Yes. Systematic Investment Plan (SIP) is a type of mutual fund which doesn’t require lump-sum investment. The investment in SIP starts at Rs. 100 and allows investment at regular intervals. So, if you are interested in investing in mutual funds but are worried about lump-sum investment, SIP can be your go-to option.
Through SIP, you can invest monthly in a disciplined manner and avail yourself of the benefit of compound interest. You can visit Tickertape to find the list of SIP mutual funds in India. Go to Mutual Fund Screener and search for ‘SIP Investment’ in ‘Add Filters’. Find the list of SIP mutual funds in India and sort them according to your preferred parameters like AUM, NAV, 1-yr returns, etc.
Unit Linked Insurance Plans (ULIPs) are provided by insurance companies. Here, a portion of the investment is invested in stocks or bonds, while the remaining is invested in life insurance. Overall, it invests in equity and debt markets while simultaneously offering protection to the investor. It covers returns, protection and tax-saving as well. However, as it involves equity, there is a certain risk involved. Learn about them here, along with everything you need to know about ULIPs and the five best ULIP plans to secure your future.
Real Estate Investment Trust (REIT) is an investment option similar to mutual funds where investors pool in investment and REIT companies manage the investment. They invest the funds in primary real estate buildings and mortgages. They generate money from the rental income, and the investors will get a portion of the returns in the form of dividends. Learn more about this investment here.
How to find the best way to invest money?
Apart from the ones discussed above, there are various other investment options in India as well. The risk profile of each investment is different, and no investment suits all your investment needs. Hence, you need to understand each investment option carefully and pick the ones that suit your objective. You need to create a diversified investment portfolio to mitigate risk. Your portfolio should be well-balanced; even if one investment is not doing well, the profit on the other ones should be able to compensate. To check if your portfolio is well-diversified, connect it with Tickertape.
Tickertape’s Diversification Score is a powerful tool that provides insights into their portfolios and helps them make informed and profitable investment decisions. The Diversification Score ranges from 1 to 100, and the higher the score, the closer the portfolio is to being perfectly diversified and less volatile. If the score is too low, you can further diversify your portfolio by adding stocks from other sectors or market caps. Proper diversification can help you achieve better risk-adjusted returns and protect against market volatility. It sure helps to mitigate red flags, too! So, what are you waiting for? Connect your portfolio now!
Finding the right investment option that suits you may not be an easy task, but once you understand the working, you’ll be able to make wise decisions and help your wealth grow. If you are new to the investment world, try learning the concepts. Make use of the Blog by Tickertape that explains investment concepts in simple terms and provides expert opinions. And there are financial advisors to help you with investment choices.
Where to invest money in India for maximum returns?
There are investment options like stocks and mutual funds that offer high returns, but they are also considered highly risky. Therefore, invest only after considering your investment objective and risk appetite.
Where to invest money in India for monthly income?
Investments like real estate, provident funds, fixed deposits, etc., offer monthly income. The monthly income depends on the scheme you pick.
What are the investment options available with low risk?
Fixed deposits and provident funds are considered low-risk investments compared to other investment options.
What are the best stocks to invest in?
There are 7000+ companies listed on the Indian stock exchanges. The best ones can be picked based on different parameters like market cap, net profit, 5 yr CAGR, annual returns, and more. Use Tickertape Stock Screener to filter the best stocks in India. There are 200+ filters that can help you understand the performance of a stock better.