If you can make your money to work for you in order to make money then you are an Intelligent investor. In these days when multiple investment options are available you need to choose the best suitable options as per your risk appetite and financial short term and long term goals. In this article we will look in to what are the best investment options available for higher returns in 2024.
What is investing ?
investing is the strategic approach an individual takes to deploy their money to get better returns to meet their financial goals. An intelligent investor takes control of his finance and make sure his hard earned money invested at the right place to generate higher returns on investment. That’s why an individual must be aware of different investment options available to grow their money. Mentioned below best Investment options available for higher returns in 2024.
Top Investment Options for higher returns in 2024.
- Fixed Deposits
- Mutual Funds
- Direct Equity
- PPF (Public Provident Fund)
- EPF (Employee Provident Fund)
- Gold Investment
- NPS (National Pension Scheme)
- ELSS
1. Fixed Deposits
Fixed deposit is an option of Investment for those investors who want safety. There is no chance of depreciation of principal amount as well as it is not affected by market fluctuations. FD provides a return ranges between 6 to 8 percentage depending upon bank. If you are looking for a short term investment, you may consider it as as a good investment option. Some investors invest a certain percentage of their money in FDs for diversification of risk. You may also keep your emergency fund in FDs as they takes less then 24hours to withdraw. Some people also consider FDs as short term investment options as they are not affected by market ups and downs.
2. Mutual funds
Mutual fund investment is one of the best investment option in India as it can be opted by individuals of all age group depending upon their risk taking ability. Mutual fund investment is subject to market risk and investors who understands the equity market of India can make some great compound returns on their investment. When we talk about mutual funds, Systematic Investment Plans ( SIPs) can be a great option, where certain amount get invested every month and gives great compound returns in a long run. Generally the Mutual fund returns may lies between 10 to 15 percent subject to market condition. After due research one must consider to invest certain percentage of investment in mutual funds for high returns.
3. Direct equity
Unlike mutual funds( which is managed by big mutual fund companies and charges certain fees of your investment) direct equity investment allows investors to invest directly in stock market. Direct equity investment is relatively high riskier then mutual funds and required knowledge and expertise in stock market.
4. PPF (Public Provident Fund)
PPF stands for Public Provident Fund. This account is backed by the government of India hence it is completely risk free unlike equity investment. Any Indian citizen can open the PPF account. The minors can also have a PPF account by their legal guardian. The present rate of interest is 7.1 % which is compund annually. The investment amount is from 500 to 150000 per anum. The returns on investment is tax free as well as gives the tax benefits under section 80C. People can stabilize their exposure by investing in PPF. PPF account can be open at any nationalized bank or post office. Read extensive details about PPF here
5. EPF (Employee Provident Fund)
EPF stands for Employee Provident Fund. It is an uniquely designed pension scheme contributed by both employee and employer to raise the corpus for retirement. In this scheme the employee and the employer contributes 12% of its basic pay to the EPF account. Then the same is manged and invested by government in government securities to generate better returns. The interest rate for FY 23-24 is 8.25%. The investment can be partially withdrawn and the EPF account can transferred to new employer in case of a job change. Read the details in the official site of EPFO here.
GOLD Investment ( Gold investment can be categorized in to three categories such as (a) Traditional gold investment, (b) Solid gold, (c) Digital gold
(a) Traditional gold investment in jewellery
GOLD is a traditional investment option in India being followed long back. But buying jewellery may not give you best returns because it involves the making changes and GST which sinks the profit.
(b) Solid Gold (Biscuits/Bars/Coins)
You can also invest in solid golds like biscuits, bars, coins etc here the making change is very low but it’s difficult to store the solid gold as it may get theft.
(c) Digital gold
Out of all the gold investment options digital gold is best in investment point of view. Many fin tech companies allow the customers to buy digital gold at market price with few clicks starting as low as 1 rupees and more. The returns can be redeemed after selling at the market price.
6. NPS (National Pension Scheme)
The National Pension Scheme is an initiative by government of India to give retire benefits to the people of all the sector that I.e Government, private as well as unorganized sectors except the people in armed forces. In this scheme you can contribute a certain amount in regular intervals which gives you returns between 8 to 12 percentage compounded annually. After retirement you get a certain corpus as lumpsum and rest you get as regular monthly pension. This scheme is best for people who want retirement security as well as tax benefits during their course of employment.
7. ELSS
ELSS is the equity oriented scheme that gives maximum equity exposure along with tax benefits upto 1,50,000 rupees under section 80C. However the income earned is taxable under LTCG. People those are young want maximum equity exposure along with tax benefits can definitely avail this scheme.
Conclusion
Different investment schemes are made for different category of people, you can chose out of the above mentioned investment plans which of them you required to give fuel to your investment vehicle. It is always important to take help of a financial planner, who will understand your fiance and can suggest the best financial planning for you. Do let us know if any suggestions and feedback in the comment section.