Which are the Best and Worst Investment Options for You?

Why do individuals save money? Furthermore, where are you going to get this money from? People typically like to set aside some of their regular income for savings. Financial planning includes budgeting. It is done in case of emergencies and future needs.

Future needs might include your child's education, medical requirements, the building of your home, festivals, your marriage, the purchase of a car, etc.

Simply saving money and depositing it in a bank locker does not provide the benefit of return necessary to acquire any asset. The value of money declines over time.

Remember that ₹100 today will be worth less and less. Therefore, you must adopt a sound investing strategy to beat inflation and ensure you get a healthy return on your investments.

Your main goal as an investor should be to maximize returns. Even though money kept in a bank earns some interest, there are other opportunities where you can make more money. The choice of an investment instrument is influenced by the investor's psychology and several other factors.

It is critical to understand that investing is not a precise science. While some people profit from their investments, others seem to lose money on every investment.

The percentage of people who invest in it and get their money back is the simplest, most direct way to judge any investment. So the following guiding principle is how many generated returns exceeded their initial investments.

Various Investment Options Available to An Investor

This blog will assist you in identifying the best and worst possible investment options for YOU!

Please remember that this article does not purport to offer investment advice; instead, it merely highlights the investments that historically have been most likely to result in financial gains and those that have been most likely to result in financial disappointments or losses. As a result, the choice of which investments to make is entirely up to you.

• Bank Deposits

Money deposited in banks for storage is referred to as a bank deposit. These deposits are made to various deposit accounts, including savings, checking, and money market accounts.

According to the terms and conditions governing the account agreement, the account holder has the authority to withdraw any funds that have been deposited.

• Gold

Gold might be a promising investment avenue. Investors looking to buy gold directly typically have three options: accept the physical asset, purchase shares of an Exchange-Traded Fund (ETF) that tracks the price of gold, or trade futures and options on the commodities market. 

• Public Provident Fund (PPF)

One of the most well-liked long-term savings and investment products is the PPF account, also known as the Public Provident Fund scheme, primarily because it combines safety, returns, and tax benefits.

The National Savings Institute of the Finance Ministry made the PPF available to the general public in 1968. Investors use the PPF to regularly set money aside over a long period to build a corpus for their retirement.

The PPF is a top choice for small savers due to its attractive interest rates and tax advantages.

• Mutual Funds

A Mutual Fund is a collection of funds that a fund manager professionally manages.

A trust that invests money in stocks, bonds, money market instruments, and other securities after collecting funds from several investors who have similar investment goals. They are managed by qualified money managers who select the securities to buy and decide when to sell them.

You are exposed to every investment in the fund and any income they produce.

• Real Estate

Buying, managing, and renting out or selling real estate for profit are all aspects of Real Estate investing. A Real Estate entrepreneur or investor makes active or passive real estate investments.

To increase the value of their investments, some investors actively develop, upgrade, or renovate real estate.

• Insurance Products

Plans for investing in insurance offer two benefits in one. With this plan, a portion is supported after a specific amount of time when you pay your insurance premium. Your investment grows in line with an increase in the premium's value.

• Direct Equity

An investment in direct equity is one in which the investor purchases company shares from the stock exchange. A share is an undivided portion of capital that grants voting rights in exchange for proving an investor's stake in the company.

• RBI Bonds

The government of India occasionally issues bonds with financing public welfare programs, boosting economic investment and enabling citizens to contribute to the country's development.

Savings bonds are typically regarded as risk-free investments because the federal government guarantees their returns. These bonds also demonstrate the level of confidence that citizens have in their government, their nation's future, and the economy's structure.

The government has previously issued a variety of different savings bonds. Generally speaking, the rate of return on investment for savings bonds is average.

• National Pension System (NPS)

The National Pension System (NPS) is a voluntary, defined contribution retirement savings plan created to help members make the best choices for their future through systematic saving throughout their working lives.

In addition, the NPS aims to help citizens develop the habit of saving for retirement.

• Senior Citizen Savings Scheme

Senior Citizen Savings Scheme, or SCSS for short, is a government-sponsored savings program for people over 60. The Indian government launched this program in 2004 to give retirees a reliable and secure source of income during their post-retirement years.

Investment Instruments and their Profiles

Conclusion

We can provide information that suggests what have historically been the best and worst investment options, based on past performance, even though we are not qualified to provide professional investment advice.

We do not advocate investing in the best and avoiding the worst. We merely suggest that you consider these findings before making any investment decisions.

The data in the table above will undoubtedly assist you in comprehending different investment fields and identifying the best and worst investment options for you.

Happy & Safe Investing!

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Himanshu Sinha