According to a report published by CEIC, India’s total investment is accounted to be 29.7% of its nominal GDP as of September 2019.
Out of the total investment, around $130 billion is invested through the NRI deposit as of 2019 according to reports from the RBI. This extensive amount of investment by NRIs is because of the fact that they are secure and facilitates assured returns.
Individuals seeking investment options
take two things into account,
Subsequently, individuals look for
profitable investment opportunities that provide a balance of both. Here are
some of the best investment options that individuals prefer to grow wealth in
A fixed deposit is a secured investment option in India that provides depositors with lucrative interest, which they can’t avail in case of a savings account.
the features of fixed deposit are as follows –
Investors can use a fixed deposit
calculator to check their returns and plan their investments portfolio
Public Provident Fund is another safe and
long-term investment option that investors can take into account in 2020.
Individuals can open a PPF account from a financial company or post office for
a period of 15 years. They can also avail income tax benefits against such
investment options. However, a PPF account holder can withdraw the funds only
after 6 years and not before.
Employee Provident Fund (EPF) currently offers an 8.65% rate of interest. While employees contribute a specific portion from their salary, employers invest from their own funds to the former’s account. Unlike PPF, EPF is only available to employees of a registered organization.
Unlike fixed deposits and other such secured investment options, mutual funds come along with potential risks as they are market-linked. However, these can fetch higher returns considering market conditions are favorable.
Investors must stay up to date with the
market fluctuations to determine when it is good to shift mutual fund
investments into a fixed deposit.
Since the market conditions of shares and
stocks are unpredictable, individuals hesitate to invest in these even though
they can bring hefty returns.
Consequently, secure investment options
such as fixed deposit and other such alternatives are preferred by those
residing in the country or outside. Several NRI deposit made in recent times
shows a preference for fixed deposits that offer security while assuring
As opposed to popular notions, investing
in real estate goes beyond purchasing property for personal use. It requires
you to strategically plan your investments and find better ways to gain higher
While there are higher margins and
lucrative government schemes that encourage investments in real estate, factors
like slowing home prices, and risks in smaller markets could deter the most seasoned
real estate investors from investing.
Additionally, the real estate investment
sector is rife with volatilities due to global trade wars, lack of investable
properties, fear of lower yield, competition from Asian and global buyers,
along with increasing costs of finance and interest rate hikes.
At most investment forums, the
discussions about whether to invest in the National Pension Scheme or not,
often crop up.
As a government-backed scheme, National
Pension Scheme enables salaried employees and self-employed individuals to
invest in it, and claim tax deduction under Section 80CCD(1).
Additionally, you can also reap the
benefits of an additional tax benefit of Rs. 50,000 under Section 80CCD(1B).
However, despite offering these lucrative
benefits, National Pension Scheme enables investors to withdraw only at the
time of retirement, at the age of 60 years.
In case you want to withdraw before that,
you can only withdraw only 20% of the corpus, and the remaining corpus must be
used to buy an annuity.
most of the above-listed investment choices could help you grow your wealth in
2020, it is advisable to choose the avenues that offer a healthy balance of
returns and safety.
what makes most investors gravitate towards fixed-income instruments like fixed
deposits that offer assured returns on your investment.
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