Best investment options in India & steps for a successful investment

Last Updated: Mon, Mar 19, 2018 14:59 hrs
Rupee (AP Photo)

The best investment options in India for 2018 particularly include fixed deposits, insurance investments, PPF, NSC & Mutual funds.  You need to check your priority and risk-taking ability to select the option that is best suited to you.

Fixed Deposit - A good option to begin with

Regular deposit in banks is the first step to start a systematic investment for most people in India. The most important factor that makes this option popular is the reasonable rate of returns it offers and the money invested is locked securely for a definite time period. You may always be assured of the returns. The term for an FD varies from 15 days to 10 years or more, depending on the bank you chose. The returns you will get are also determined by the rates prevalent in the market. The best factor right here is that your money invested would be secure & you don't have to worry until the maturity period.


Apart from fixed deposits in banks, the other popular mode of investment is insurance. Insurance gives you peace of mind in the form of safety coverage and also provides you an option of getting returns for your money invested. Coverage policies vary with a variety of products. Coverage policies like life insurance, domestic insurance, car insurance & medical insurance are few examples of such form of investment options.

Public Provident Fund - Investment option with higher returns

Public Provident Fund (PPF) is also a brilliant choice to invest money securely for future. The primary reason is the high rate of return mainly for people who are beneath 30% tax bracket. The time span of investment may be as high as 15 years, but with almost no threat & suitable returns, this is quite a feasible option to choose.

National Saving Certificate (NSC)

National Saving Certificates (NSC) is another preferred investment option in India. This investment alternative comes with six-year lock-in period & with the ease of government subsidies NSC's are an apt choice. All these characteristics make this selection secure in every sense. A person can start with as small as Rs.100. The rate of interest is 8% which is calculated twice in 12 months. You could get advantage from tax deductions till Rs. 1 lakh on NSC returns.

Mutual Fund Investments - A safer option

Mutual funds (MFs) are also very popular amongst people. They could prove to be very fruitful if you make regular investments and create a diverse portfolio which can give greater returns. If you need to go into inventory markets & don't desire to take unnecessary risks then this is a feasible option. Additionally, you can generate higher profits. It's an excellent investment option if you want to generate a great amount of return. However, the key thing is to remain invested for a long period of time.  A diverse portfolio reduces the danger elements and prevents you from loss of your entire investment.

Investments, whether done for a short period or for a longer period of time, needs regular discipline and ability to stay invested. If done properly and with the right frame of mind, any form of investment will yield good returns which you can utilize at the desired time.

Here are few quick steps for successful investments:

1. Outline your necessities: You need to realize what you are investing for. Is it for retirement? kids education? a big purchase? or something else.  When you outline your dreams, you may calculate how a whole lot it'll take to acquire them.

2. Make Investment: An Investment Policy Statement (IPS) is a document which defines the parameters for which you may invest. It ought to be in writing and it is an essential part of your funding plan management. It facilitates you to keep your plans on track and avert any diversions. Your investment coverage announcement must mention the types of investments you'll own, how you will pick the managers in your investments (which mutual price range or ETF's may be bought), how you may update one's investments while necessary, what percentages of which asset may be bought,  how you'll manage and monitor your investments and when you will re-balance your portfolio.

3. Maintain: Finally, it's not sufficient just to make investments and forget about it! Investing takes time to bring out the desired results from your portfolio. Hence stick to it for a longer duration of time.

Each investment assessment must be in tune with your current investment, focusing on a benchmark of where you have to be in the future to fulfill your dreams.  It is a fact that your asset allocation might require adjusting from time to time.

The essential thing to do is not forget the investments made by you and monitor them from time to time to ensure that they are on track as per the goals set by you.

If you are looking for an effective investment plan, take help of an online insurance web aggregator for the same. It will help you with free quotes and guide you towards the needful steps.

Naval Goel is Founder & CEO