There’s no shortage of ways to invest in the Indian market. But there are often a lot of different ways to approach a market, and some of the most obvious ones don’t always pan out the best for the investor. So, which one is best? We’re here to give you 6 investment options in India that you probably weren’t aware of, that are still great investment choices.
1. Deposit in small finance bank
You read that right. In India, you can actually start investing in small finance banks. The interest rate will depend on your deposit amount, but it’s typically around 8% or even higher. And also, the minimum deposit amount is much lower than what we’re used to in the developed world. You can even open an account where the balance never drops below INR 100.
2. Sukanya Samriddhi Account
SSAs are a retirement account offered to every individual from the age of 10. This was part of a programme initiated by the Government that aimed to ease out poverty and unemployment in India. What can you do with this account? You can put money into mutual funds so that they compound everyday and generate constant income .
3. National Savings Certificate
These certificates have been around for many years, but their sales have increased greatly. Why? There are 2 main reasons. First, the interest rates are much higher than other certificates offered today. Secondly, the passive nature of these certificates means that you can sleep and leave them there – they’ll handle everything. You simply need to take care of your regular saving.
4. Investment in mutual funds
Nowadays, most people are aware of mutual funds. These are funds which are owned by a fund management company. These companies invest the money on different stocks, bonds, real estate etc. As the name suggests, everyone can participate in these funds. The best part is that you don’t need to worry about how to invest the money because it will be done by professional fund managers.
5. Tax Free Bonds and Tax Saving Bonds
Now this might be the easiest way for you to save money. Both these are offered by the government. The interest rates are very low, so you should be able to make good use of this. The government allows all salaried people to invest in tax free bonds. These bonds are issued by the government and also offered by various companies. The interest rates are low and sometimes they provide benefits too.
However, before investing, you should make sure that you are eligible for it. Also, these are not guaranteed and the market can crash at any time. So, in order to secure your capital, it is always recommended to use mutual funds or other mutual investment products.
6. REITS and InvITs
This type of investment is suitable for those who have sufficient capital, but don’t have a lot of time to invest in the market. You should know that these are real estate investment trusts (REITs) or indirect investments in the real estate sector. So, if you want to invest in property, then you should consider this option. The returns of these are high. There are plenty of options available on the internet as well. And, you can also invest directly in the real estate.
So, if you are thinking of investing in property, you should consider some options first. And, if you need advice, then you should contact your financial adviser. It will be easier for him/her to provide you with the best investment options in India.