What are best investment options for salaried person in India?
- Asked By
- Updated On:28-Jan-2021
- Replies:5
Short Answer
For a salaried class, there are many places where investments done. Know the best investment options for salaried person in India. The best investment options for a salaried person are Gold investments, PPF account, national pension scheme, ELSS, and fixed deposits.
Detailed Answer
As a salaried person, you tend to get confused while taking the right investing decision. A fixed salary, EPF, tax deducted(TDS) and monthly salary cheques/credits to your account, familiar terms for a salaried individual.
Now, the question is how to save and invest this salary income to generate future benefits?
A salaried person usually ponders over the best investment options available.
Best Investment Options for Salaried Person
Here are few long term investment options in India that came to my mind, which I would like to mention:
- PPF or Public Provident Fund: Who doesn't know this investment alternative? We all do, right. PPF fetches 8% p.a. interest for quarter Oct to Dec'18 and provides fixed income without any risk.
- NPS or National Pension Scheme: Another popular long term investment. Although, this doesn't give a fixed return, but still a common choice.
- Gold Investment: An all time favourite, we all love investing in gold, as and when we afford to do so.
Mutual Fund Investments: SIP or Systematic Investment Plan seems quite convenient since you can start investing a small amount regularly.
- ELSS or Equity Linked Saving Scheme: ELSS has a lock-in period of 3 years and tends to give you better returns. Although, there's no guarantee of higher returns, still a popular way to invest money in India.
- FD or Fixed Deposits (Recurring Deposits): A traditional way to invest money in India. FD is the simplest and the most common way to invest your earnings.
This is not "one fit all" solution. Individual needs and goals may vary. Similarly, there investment choices may vary as per their risk appetite.
Direct Stock market investing involves too many risks, so I won't call it the best option for a salaried person initially. Once a person grows in career and has excess savings he can explore new investment opportunities.
I have expressed my opinion, what do you think? Do you have any other best investment options to add to this list? Which is your favourite investment option in India? Any suggestions for a salaried person to get higher returns plus tax saving.
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Discussion (4)
Hi, ULIP's are Unit Linked Insurance Plans which are publicized as combo offer of insurance and investments. Ideally, the two goals i.e. insurance and investments should be separated from each other. Insurance is risk coverage of mis-happening and investment is wealth creation. The two should be treated differently. If you are looking for insurance, Its better to get a term insurance and invest rest of the amount in Mutual Funds or any other saving instrument which you are comfortable with. Also Post Office Savings Schemes are good, they offer higher rate or return, but problem is accessing their services, which are not completely online.
Yes, PPF is one of the favourite investing alternatives in India. I have seen most of the salaried persons opting for PPF as a long term investment option. In fact, it's good for one's who don't want to take any risk and look for fixed returns only. Mutual funds & ELSS have some risk attached to them. So, we must firstly analyse our risk horizon before diving into any particular investment option.
Hi, I think PPF is no longer the best option. I know it's a safe option. But, check the past few quarters interest rates. The PPF interest rate has reduced so much. It used to be above 8.5% few years back. This came down to 7.1% also in the previous months. So, I don't think we can call it the best investment option for all. For people finding sage alternatives, this may prove good. But, for the ones looking for higher returns, you need to try different investing options like mutual funds & stocks. What do you think? Any feedback.
Public Provident Fund Scheme is a saving scheme that comes with tax benefits. Ministry of Finance introduced this scheme in the year 1968. The main objective of PPF is to encourage general people to mobilize their small savings. The interest offered on these schemes are not taxable. Precisely, PPF is an investment with non-taxable returns.
Mutual funds are regulated by SEBI ( Securities and Exchange Board of India). SEBI regulates mutual funds as 1996 Mutual fund regulation. SEBI is also the regulator for wider capital and securities market in India. SEBI was formed in 1988 as a statutory body and drives it powers from SEBI act 1992.
Several monthly income plans available such as senior citizen fixed deposit, senior citizen savings scheme, post office monthly income scheme, tax-free bonds, debt funds, and many more are the best monthly income place for senior citizens in India.
The best investment plans in India for a year are to invest in fixed deposits, short-term funds, and ultra-short-term funds. These are less risky and produce relatively higher returns than banks.
Wise is one of the cheapest ways to send money internationally as compared to other available options in India. The only limitation of Wise is that it does not integrate with e-commerce online payments.
Interactive Brokers & Zeodha are two Brokers from the Discount Broking community but both are quite different from one another in terms of Features and Working. One is an Indian discount Stock Broker whereas the other is a U.S based Discount broker that has its branches in many countries. Let's look at them in depth below.
Liquid funds, a type of mutual funds which invest in different money market instruments. The withdrawals from these funds are processed within 24 hours and that's why these are regarded as liquid assets. The fund manager gets flexibility to meet immediate redemption requests.
Navigating the huge selection of investing possibilities can be a difficult chore for middle-class people.There are a lot of options, ranging from mutual funds and fixed deposits to the National Pension System. This will give middle-class Indians a thorough insight to the finest investing strategies.
Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.
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mehakpal
Stock market seems to be a lucrative option. But, that's actually very risky. So, I also won't probably add direct stock investing as the best option for salaried individuals. Being a salaried person, one can try out other available investment options. Why take too much risk initially? If you have started a new job then go for safer options. Once you have a fairly good earning & can afford bigger risks then only try riskier options. If you still feel like exploring stock market, investing in mutual funds still seems to be a less riskier way. Mutual funds also have risks attached. But, if you plan and invest smaller amounts like SIP or Systematic Investment Plan, then you may place yourself in a much better position.