Which is the best investment plan with high returns? : The answer is explained here in this article. When one is tired being a salaried man or getting the same amount of money over and over again, then one can choose investment as an option to add more money to your earnings. It is usual that an investor always chooses wisely an investment plan where there is high rate of interest and less risk involved. For this, the investors look out for different investment plan with unique schemes from where they can earn more money and double their income in the following years.
Although it is fact that such investment with high returns and less risk does not exist in the real world. Higher are the returns higher the risk. It is all about adjustment and choosing the risk wisely. So here are the top ten investment plans with high returns, have a read and chose accordingly.
Top 10 investment plans with high returns
The best investment plan with high returns are mentioned below:
1. Direct Equity
It is really not that easy or just a smooth task to invest in stocks as there isn’t a possibility that you will earn returns. In many cases it is a hard task to choose in what stock you want to invest including your entry and exit time. Now the only interesting part is equity was able to give high returns than inflated adjusted returns over a long period of time when compared to other asset classes. If you go on for stop-loss method then your chance of losing a high amount of capital will be less.
In this method one can order to sell their stock in advance with a specific price deal. You can also capitalize markets and diversify it across many places to minimize risk. But before you invest in equity you need to first open a demat account and then start. So, direct equity is the best investment plan with high returns.
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2. Equity Mutual Funds
According to Securities and Mutual Funds Board of India, at least 65 percent from assets in equities and equity instruments should be invested in the equity mutual fund scheme. You can manage the equity fund either actively or passively. The whole actively working traded fund’s returns are highly depended on how the fund manager generates returns. Index funds and Exchange traded funds can be managed passively.
Equity shares are categorized as market capitalization, sectors, domestic and international. Here, domestic means investing in Indian companies where as international means investing in companies abroad. Presently, the market returns are 15% and 20%.
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3. Debt Mutual Funds
If you’re an investor looking out for steady returns then investing on debt mutual funds is the right choice for you. Investing in debt mutual funds consists of less risk and less volatile when compared to other equity funds.
Usually, when investing in debt mutual funds, invest in fixed interest securities like government securities, corporate bonds, treasury bills, commercial paper and various other money related instruments. Market returns are 6.5%, 8% and 7.5%.
4. National Pension System
The National Pension System is managed by Pension Fund Regulatory and Development Authority. It is a long term retirement which focuses on investment. Now, the minimum amount to be maintained in NPS account annually is reduced from Rs 6000 to Rs 1000.
NPS is the combination of equity, fixed deposits, corporate bonds, liquid funds and government funds. Make sure you know that how much risk you can take based on which you can invest money on equities through the NPS. Market returns are 9.5%, 8.5% and 11%.
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5. Public Provident Fund
The public provident fund is very common among people as many people turn to this. This fund has 15 long years of tenure with a tax free compound interest, mostly in the late years.
Moreover, it is a safe and secure investment because the sovereign guarantee backs up the earned interest and invested principal.
6. Bank Fixed Deposit
One of the safest choices for investing in India. According to the rules in Insurance and Credit Guarantee Corporation, a bank depositor is insured up to Rs 100000 for the interest amount and principal amount.
One can choose either quarterly, half yearly, yearly or cumulative interest. The interest rate gets added with your income and is the tax rate will be in accordance with your income slab.
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7. Senior Citizens Savings Scheme
For the retired ones choosing the Senior Citizens Savings Scheme is the best option for investing. But only the retired and old aged people can apply for this investment scheme. A senior person who is above the age of 60 can avail this scheme either from a bank or from a post office. It is a five year tenure plan but can be extended by more three years after the maturity period.
The interest rate is 8.5% with added tax which is to be paid quarterly. You can open more than one account and the upper limit amount is Rs 15 lakh.
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8. RBI taxable Bonds
The 8 percent savings bond with added tax had been replaced with 7.75 percent savings bonds with added tax by the government. The investor can issue this bond either in demat form or to be credited in the investor’s bond ledger account.
Such bonds have 7 long years of tenure and the investor receives a certificate of holding as a proof to the investment.
9. Real Estate
Firstly, you should never consider on investing in your own house as its self consumption but you don’t wish to live in it anymore then your second property which you purchase can be your investment. The value of your property depends on location and the amount of rent it is to earn.
You can get returns in real estate investment in two major ways that is capital appreciation and rental. Though real estate being highly liquefied compared to other assets but still it’s got risk involved as you need to get regulatory approval which addresses largely after the coming of real estate regulator.
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Processing of gold through jewellery has its own cost and conditions which includes making charges ranging between 6 to 14 percent of the gold and when there are special designs the rate can go up to 25 percent. One can buy those ingeniously minted gold coins.
In addition to this another way of buying paper gold is through the medium of “gold ETFs“. Such buying and selling investments occur during stock exchange with gold as the asset. Also, you can invest in sovereign gold bonds to own paper gold.
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