When it comes to investing funds to build a corpus, there is a fair bit of confusion among people with regards to the best investment options in India. There are several different investments, each with a different return. However, the best investments are those that provide inflation beating returns consistently over the long run and manage to also save tax.
Here is a list of best investment products in India:
1. Mutual funds:
This includes both equity mutual funds and debt mutual funds. Debt mutual funds have a fixed and guaranteed return and are a great avenue to park funds for the short term. Since it is a mutual fund, the money is liquid and can be converted to cash at any point of time. Equity mutual funds grow based on the market movements. However, they are the best tool to grow capital in the long run. Investing in special tax saver mutual funds gives a deduction under Section 80C of the Income Tax Act up to Rs. 1,50,000.
Investing in mutual funds is the best option for people who want to enter the market but don’t have the right expertise. Mutual funds are professionally managed and an investor can take advantage of the fund manager’s expertise while making his investment.
2. Equity shares:
Equity shares are units of capital issued by a company. Investing in equity shares, especially in reputed companies can be an excellent strategy to grow your capital. Investing in equity shares also gives a return in the form of dividends which are tax free. Equity shares can be purchased from the secondary market or via an Initial Public Offer (IPO) which is the first time a company issues shares to the public.
3. Saving Bonds:
These are bonds issued by the Government of India. They come with a coupon rate of 7.75%. Since they are issued by the Government, they are a risk free investment option. The interest on these bonds is taxable.
4. Capital Gains Bonds:
These are bonds issued by the National Highways Association of India (NHAI) or the Rural Electrification Corporation (REC). These bonds are excellent for investment to reduce the capital gains tax on transfer of assets. However, from AY 20-21 or FY 19-20, this deduction is available only to people who transfer houses or plots of land. No other asset transfer will be allowed for taking an exemption.
5. Inflation indexed securities:
These securities are issued by the Reserve Bank of India. The coupon rate on these investments is 1.5% more than the consumer price index. This investment is only available for retail investors. These securities are only available via SBI, HDFC Bank, ICICI Bank and Axis Bank.
It is possible to make an online investment to invest in any of these products. To make an investment, the first step is to open a demat and trading account with a reputed company. The best way to ensure you grow your capital to meet your targets and goals is to avail professional investment services of a financial planner. This way, your capital will be managed professionally and you can ensure it is deployed in the best investment options in India to meet your goals.
Here is a list of best investment products in India:
1. Mutual funds:
This includes both equity mutual funds and debt mutual funds. Debt mutual funds have a fixed and guaranteed return and are a great avenue to park funds for the short term. Since it is a mutual fund, the money is liquid and can be converted to cash at any point of time. Equity mutual funds grow based on the market movements. However, they are the best tool to grow capital in the long run. Investing in special tax saver mutual funds gives a deduction under Section 80C of the Income Tax Act up to Rs. 1,50,000.
Investing in mutual funds is the best option for people who want to enter the market but don’t have the right expertise. Mutual funds are professionally managed and an investor can take advantage of the fund manager’s expertise while making his investment.
2. Equity shares:
Equity shares are units of capital issued by a company. Investing in equity shares, especially in reputed companies can be an excellent strategy to grow your capital. Investing in equity shares also gives a return in the form of dividends which are tax free. Equity shares can be purchased from the secondary market or via an Initial Public Offer (IPO) which is the first time a company issues shares to the public.
3. Saving Bonds:
These are bonds issued by the Government of India. They come with a coupon rate of 7.75%. Since they are issued by the Government, they are a risk free investment option. The interest on these bonds is taxable.
4. Capital Gains Bonds:
These are bonds issued by the National Highways Association of India (NHAI) or the Rural Electrification Corporation (REC). These bonds are excellent for investment to reduce the capital gains tax on transfer of assets. However, from AY 20-21 or FY 19-20, this deduction is available only to people who transfer houses or plots of land. No other asset transfer will be allowed for taking an exemption.
5. Inflation indexed securities:
These securities are issued by the Reserve Bank of India. The coupon rate on these investments is 1.5% more than the consumer price index. This investment is only available for retail investors. These securities are only available via SBI, HDFC Bank, ICICI Bank and Axis Bank.
It is possible to make an online investment to invest in any of these products. To make an investment, the first step is to open a demat and trading account with a reputed company. The best way to ensure you grow your capital to meet your targets and goals is to avail professional investment services of a financial planner. This way, your capital will be managed professionally and you can ensure it is deployed in the best investment options in India to meet your goals.
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