Investing your money in schemes without analyzing the risks and advantages can be dangerous. In the year 2020, investors have identified the importance of making wiser decisions that can help them overcome unforeseen crises. For this, it is important to start afresh in this new financial year and revamp the way we plan our investments. Stockbroking, stock market advisory, and investment advisory companies in Mumbai are the best guiding source for an investor. They’ll map out your goal and advise the best investment options for you. Here are a few options you can consider while investing your money in 2021:
United Linked Insurance Plan
ULIP is dual benefit insurance and investment plan that uses a percentage of your premium for insurance coverage and the rest of it is invested in other options such as shares, bonds, stocks, etc. Another advantage of opting for ULIP is tax exemption and the flexibility to invest as per your risk appetite. This is a long-term investment option and one of the best in India so do invest in ULIP wisely.
If you are looking for higher returns over long-term investments, mutual funds are one of the most recommended and reliable options in India. With mutual funds investments, you can put your money in various financial instruments such as debt, stocks, equity, etc. The return on investment will be generated based on the market performance of your funds. There are two major types of mutual funds people opt for in India, equity mutual funds and debt mutual funds. Equity mutual funds provide high ROI when you invest in shares of companies from various segments whereas, debt mutual funds provide a steady ROI when invested in fixed interest securities. A stock market advisory will guide through this with in-depth classification.
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Public Provident Fund
PPF is considered one of the most secured long-term investment options. You can open a PPF account in a bank or a post office. When you put your money in PPF, it gets locked for a period of 15 years, you can expend this for more than five years. You will receive compound interest on the investment done at the end of your tenure. Most people refrain from PPF investments as you are only able to withdraw the amount if necessary after the first 6 years. Until then, if you need a loan, you can get it on the balance of your PPF account. However, PPF is a government-backed scheme, making it a secure and guaranteed investment option. You can invest a minimum of Rs. 500 up to Rs. 1.5 lakhs per year. PPF also is a tax-saving option.
Real Estate Investment
2020 has taught everyone the importance of investing in a good home. People have realized the value of real estate and this is the perfect time to invest in this segment. In years to come, experts predict to see a boom in the real estate market. It is a fast-growing segment and currently, the prices are being kept low to attract buyers. But soon, once the economy and the country get back on their feet, the prices will reach a rocket high. Real estate also acts as an asset with high returns on long-term investment.
National Pension Scheme
If you are planning to spend your retirement at ease, an NPS is a reliable option for investment. Here your money can be invested in financial instruments like bonds, equity, government securities, and more as per your preference. You can choose these investments to be active or auto. Auto investments mean that your funds will automatically be invested in verified assets whereas active investments mean that you can choose to invest where you’d like. You can withdraw the funds with their interest earned once you reach 60 years of age. The interest earned will be tax-free.
There are various other investment options available such as bank fixed deposits, senior citizens savings schemes, direct equity, gold EFT, post office monthly income schemes, and more. But if it seems like a challenging task to analyze and invest your money wisely in these options, reach out to us. We are one of the leading stock trading and investment advisory companies in Mumbai. We’ll help you out with the best investment options available to suit your life goals. Get in touch with us today!
Also Read: How to invest in the stock market in India