An investment plan is a sure shot method to beat inflation and at the same time increase your capital. But this is only achievable through investing in the best investment plan in India. Continue reading to know more about investment plans and India’s popular investment plans.
Importance Of Having the Best Investment Plan in India
India is a developing country, but it also means that the expenses rise. So shortly, the price of any currently cheaper product can increase substantially. And adding inflation in this scenario can further worsen the situation for people who haven’t opted for a plan yet. A Savings plan can never be the solution for long term money safekeeping. It is because of the limited interest rates that banking companies and other NBFCs give. The only way to tackle the rise in rates of services due to quality upgrades and the slow degradation of the value of money is through investment.
The investment will always have higher interest rates than conventional savings schemes. And through choosing the perfect investment modes and correct allocation of funds, all investment risks are avoidable. The major reason people give for preferring a savings plan instead of an investment plan is that the latter has several risk factors. But obtaining correct knowledge of investment meaning can teach the investor how to avoid most occasions that bring losses. Also, anyone best investment plan in India can ensure that wealth keeps on growing on its own, without the extra effort of the investor, which is not seen in a savings plan.
5 Best Investment Plans In India
Currently, there are several investment plans in India, which the people opt to get high return rates. Most of these are banking and securities linked instruments, which adds to the genuineness of the product. And the constant guideline updates and regulation from the government and the associated development board makes investing in those much easier and risk-free. Below are five of the plans worthy of being known as the best investment plan in India due to the high returns it provided over the past years.
Gold and Sovereign Bonds
Gold has always been the most invested object in India. Indian households and religious institutions have more than 23,000 to 24,000 tonnes of gold in their possession, which is more than triple the gold reserves of the USA. This high demand is because it has always been a part of the culture and its capability to increase value over time. Sovereign bonds are also equivalent to gold investment as their value is linked with the rate of gold. These high returns and popularity make gold the best investment plan in India.
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Fixed deposits are a banking tool that provides interest rates on larger funds over longer durations. They are the second most preferred investment in India due to their guaranteed return of capital and interest. Thus, fixed deposits are worthy of being known as the second-best investment plan in India. These schemes are also under the direct regulation of banks, which have the backing of reserve banks and the government. So, the chances of deferral due to any circumstances are very low.
Other Banking Instruments
Other banking instruments can include recurring deposits, savings schemes, centralised schemes, and savings certificates. Even though the returns of these schemes are lower in comparison to fixed deposits, they have assured returns. A setback for investing in fixed deposits is the high amount of investment money that the investor has to accumulate and pay at a time. So, the major purpose of these other schemes is to allow people who don’t have such high funds to a good investment mode.
The stock market is a growing investment plan, capable of becoming the best investment plan in India. It can provide higher returns than any other investment plan but with higher risk levels. But several of these risks are avoidable if the investor devotes time and resources to learn them. India’s stock market has also been rising for the past few years, and the market cap has crossed those of several top-ranking countries. And with the recent provisions of investment opportunities in US stocks, there is no limit to the returns it can achieve for Indians.
A Term Insurance is an affordable insurance policy that provides financial protection to loved ones in the policyholder’s absence. The nominee receives a lump-sum amount of policy as a death benefit in case of the policyholder’s sad demise during the policy term. A Term Insurance also fulfils a family’s future needs, such as children’s higher education expenses, marriage, housing, daily expenses, etc. Term insurance offers you the best maturity amount at low premiums rates among all other life investment plans.
You can obtain financial safety through any of these investment plans. It is because these are all methods through which several people invested and obtained high yields. However, despite all these means being popular, term insurance proves to be the best investment plan in India due to its added benefit of life coverage. If you wish to pursue term insurance as an investment option, check out Max Life Insurance plans. They have a wide range of specific plans suitable for different categories and provide extra benefits for minors and senior citizens. So do visit the Max Life Insurance official website to get more detailed information.