Top 10 Investment Options in India for 2022

While FD and RD investments in India offer comparable returns, fixed deposits are better suited to grow a lump sum investment with interest earnings. Recurring deposits, on the other hand, are better suited to inculcate a savings habit and steadily through regular monthly investments into the account along with interest earnings.

3. Direct Equity

One of the first things you should figure out is whether you are looking for long term or short term investments. Direct equity investing is one of the best investment options for long term purpose. It is about the equity shares of a company, which binds you in legal terms related to the company ownership.

By buying a company’s shares, you also get the right to get involved in company meetings and have your say on the company’s decisions. Also, you get the profits as distribution in proportion to your shareholding in the company.

As an investor, you must know that a company’s performance has an impact on the share price, both positive and negative. Depending on the market conditions and your risk appetite, you can also choose to give up the shares back later either to the company or a third party.

4. Post Office Saving Schemes

These are deposit avenues for investors made available by India Post, the body that controls postal chain in the nation. This investment option was once introduced to help people inculcate the habit of disciplined savings in life while also providing investment avenues to aid in financial planning.

What makes these schemes one of the best investment options is the ease of enrolment or application. You can invest in these savings schemes by visiting the nearest post office branch.

Saving schemes that fall under post office investments include:

• Post Office Savings Account
• Post Office Time Deposit Account (TD)
• 5-year Recurring Deposit Account (RD)
• Monthly Income Scheme Account (MIS), and many others
   

5. Bonds

Just like individuals, companies and government bodies need fund for infrastructural development and social programs, for which they issue bonds to the public markets. The interested investors then buy the bonds to help these entities raise money.

In other words, bonds are fixed-income investment options that cover the loan made by an investor to a corporate or governmental borrower.

What makes them one of the best investment plan in India is that the terms for fixed interest payment, loan principal, and tenure are all included in the bond details. Hence, it assures you of the safety of your investment along with an additional return.

Also, bond prices are inversely proportional to the offered interest rates. It means that these price fall when interest rates increase and vice versa.

NPS investments do not have guaranteed returns as they invest in market-linked instruments. However, considering the unique tax benefits and its potential to generate inflation-beating returns, NPS is still one the best long-term investments in India right now.

7. ULIP

Another investment option for individuals who want market linked returns along with insurance is Unit Linked Insurance Plan (ULIP). You can buy a life insurance which helps to invest in different funds and give you life cover option at the same time. ULIP has become one of the best investment plan in India.

This top investment option in India offers dual benefits of insurance and market investments, which helps you systematically grow your money. You can choose the most suitable policy tenure based on whether you prefer long term or short term investment options. Additionally, ULIP also offers tax benefits under section 80C of the Income Tax Act 1961.

8. Liquid Funds

Liquid funds are like stock market investments, wherein money is invested in government bonds and securities. Since there is no lock-in period, it allows you to withdraw money as per your requirement; thereby making it one of the best investment options in the market.

When it comes to short term investments, liquid funds are the one of the best investment options in India. You can invest in it for 3-5 years and withdraw money as per your requirement for fulfilling your short term goals. They are less subject to market risks than mutual funds, which also makes it one of the best investment options.

9. Public Provident Fund (PPF)

Public Provident Fund is a government backed scheme that provides guaranteed returns based on the applicable interest rate. The PPF interest rate in decided by the Government and liable to change every quarter. The current interest rate from PPF is 7.1% and will be in effect till September 2022.

Although the maturity period of PPF is 15 years, you can start the partial withdrawal of your money after completion of six years. However, you can also use your PPF balance as security to take loans. It falls under the EEE category of tax savings, since the principal amount, interest earned, and maturity amount – all are eligible for tax savings. Thereby PPF is one of the best investment options available. As per Section 80C of the IT Act 1961, you can avail tax deductions for your contribution towards the PPF account. 

10. Senior Citizen Savings Scheme (SCSS)

@Max Life Smart Wealth Plan|A Non-Linked, Non Participating, Individual Life Insurance Saving Plan|The guaranteed benefit are applicable only if all dues are paid

@Rs.9,46,489/-as lump sum at the end of 15 years, for 35 years old healthy male