There are numerous investment plans for business loans and personal loans. Some of the best investment plans in India are multiple investment options one can consider. But the ultimate question is which investment plan is suitable for a person tailoring to their need and requirements. Amongst the top investment tips, One way to select the perfect investment plans for your portfolio is to divide the financial goals into 3 main buckets such as long-term, medium-term, and lastly short-term. After doing this it will give you an idea about the time you have in your hand to achieve the desirable goal. In addition, you can select among the available options according to your risk appetite and individual goal.
This article will look at some of the leading investment options in India that fit into these 3 buckets, i.e., long-term, medium-term, and short-term.
What is an Investment Plan?
An investment plan is understood as a roadmap for their financial journey. It assists a person in deciding why, where to invest, and how much to invest so that they can achieve their financial goals. Such goals could be buying or renting a house or car, higher education, marriage, or retirement planning.
Various high-return investment options prevail in India, such as equity, mutual funds, fixed deposits, bonds, etc. Therefore, it is necessary to analyze the advantages and disadvantages of such investments and to select the one that best fits your requirements while developing an investment plan.
An investment plan should be tailored to an individual’s objectives and risk tolerance. It is not a one-time process, one should regularly revisit and adjust their investment.
Different types of Investment Options in India
Investment types in India can be divided into high-, medium–, and low-risk options based on the level of risk and potential returns. Below is a detailed discussion of each type of investment:
Low-risk investments:
At first, Low-risk investments are those that possess a very minimal level of risk, or zero level of risk. It offers stable returns, which are the guaranteed return on the investment. Such types of investments are suitable for risk-averse investors who are looking to earn guaranteed returns—for instance, Fixed deposits, the Public Provident Fund, Sukanya Samridhi Yojana, etc.
Medium-risk investments:
Medium-risk investments are those types of investments that are slightly riskier than low-risk investments. Such investments seek to produce good returns while assuming a moderate level of risk. These are appropriate for investors seeking a portfolio that balances growth and stability. Examples of medium-risk investments include Debt funds, Corporate Bonds, Government Bonds, etc.
High-risk investments:
High-risk investments are usually market-linked investments that carry higher levels of risk. Such types of investments generally seek to give higher returns in the future, which too with significant volatility and uncertainty. These are suitable for investors willing to pursue higher risks and want to earn a return from market fluctuations. For instance, high-risk investments include stocks, mutual funds, Unit Linked Insurance Plans, etc.
Top Investment Options For Long-term
Long-term goals are the plans that one wants to achieve in a span of the next 7-10 years. These include volatile investment options that can deliver high returns over the long period of term. Following are some of the leading investments for the long term in India:
Direct Equity
Direct equity is one of the prime ways to create wealth for long-term goals in a way to invest in equities. There are numerous examples of stocks that have multiplied investors’ wealth over time. For instance, the Indian non-banking financial company Bajaj Finance has delivered an annualized return of about 44.1% in the last 15 years.
The NPS
The National Pension System popularly abbreviated as (NPS) is a long-term retirement-focused investment product. It mixes certain assets such as equities, government, and corporate bonds. An individual can decide how much of their money can be invested in various asset classes based on their risk appetite.
