Top-10-investment-options
By Okbima 06 Nov 2023 13

Top 10 Best Investment Options in India in 2024

 

Looking for the best investment options in India is necessary for securing long-term financial growth. With the right investment choices, you can secure your financial future and achieve your goals. In India, 2024 offers a lot of investment options, making it crucial to choose the best ones for your goals. In this article, we will explore the best ones such as stocks, equity, mutual funds, etc. 

 

What is Investment?

Investment refers to the allocation of money into assets, ventures, or projects with the expectation of generating income, profit, or an increase in value over time. The primary goal of investing is to make your money work for you, rather than letting it remain idle. Investments encompass a wide range of options, such as stocks, bonds, real estate, mutual funds, and various other vehicles. The choice of investment depends on your financial goals, risk capacity, and the time horizon for achieving your objectives. 

 

What are the Best investment options in India 2024?

In 2024, India presents a diverse range of investment opportunities. The below table provides a concise overview before deciding to buy investment plans.
 

 

Investment Options

Period of Investment (Minimum)

Investment Amount Limit

Tax Benefits


 
 

Unit Linked Insurance Plan (ULIP)

<= 45 years

Rs. 500—No Limit

Available u/ Section 80 C and Section 10 of the IT Act, 1961


 

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Senior Citizen Savings Scheme (SCSS)

5 years (extendable by 3 years)

Rs. 1000-- Rs. 30 lakhs**

Available u/ Section 80 C of the IT Act, 1961


 

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National Pension Scheme(NPS)

Up to the age of 60- 70 years (extendable by 5 years)

Tier I: Rs. 500 Tier II: Rs. 1000

Available u/ Section 80 CCD (1), 80 CCD (2), and Section 80 CCE of the IT Act, 1961.


 

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Pradhan Mantri Vaya Vandana Yojana (PMVVY)

10 years

Rs. 1,56,658 – Rs. 15 lakhs

Nil


 

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Post Office Monthly Income Scheme (POMIS)

5 years

Single Life: Rs. 1000-- Rs. 9 lakhs Joint Life: Rs. 1000—Rs. 15 lakhs***

Nil


 

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Public Provident Fund (PPF)

The lock-in period of 15 years (extendable by 5 years)

Rs. 500-- Rs 1.5 lakhs yearly

Available u/ Section 80 C and Section 10 of the IT Act, 1961


 

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Bank Fixed Deposits

7 days to 10 years

Rs. 500-- Rs. 5 Crores

Deductions available u/ Section 80C for Tax-Saver FDs


 

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Direct Equity

Decided by the investor

NA

Taxable for LTCG and STCG gains


 

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Mutual Funds

The lock-in period of the ELSS scheme: 3 years

Rs. 500—No Limit

Tax exemptions for ELSS scheme u/ Section 80C of the IT Act, 1961.


 

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Real Estate

NA

NA

Taxable for LTCG and STCG gains


 

Get a Quote

 

Best Investment Options in India 2024: An Overview

Looking for the best investment options in india is time-consuming. We have mentioned a detailed guide that explores various investment options available in India, offering insights into returns, risks, and suitability for different financial goals.

1. Unit Linked Insurance Plan (ULIP)

A Unit Linked Insurance Plan (ULIP) is a unique financial product that combines life insurance coverage with investment opportunities. ULIPs have gained popularity due to their dual benefit of providing financial protection and wealth creation. 

A part of the premium you pay goes towards life insurance coverage, ensuring financial security for your family in case of your demise. The remaining portion is invested in various funds, allowing you to build wealth over time.

  1. Premium Payment Flexibility: ULIPs offer flexibility in premium payments. You can choose between regular premium payments or opt for a single premium based on your financial situation.
  2. Switching Funds: ULIPs allow you to switch between different fund options based on market conditions or changes in your investment strategy. This feature ensures that your investments remain aligned with your goals.
  3. Transparency: ULIPs are known for their transparency, as policyholders can easily track the performance of their investments and understand the associated charges.
  4. Tax Benefits: ULIPs offer tax benefits under Section 80C for premium payments, and the maturity amount is tax-free under Section 10(10D) of the Income Tax Act, making them tax-efficient investment options.
  5. Investment amount: The minimum amount that can be invested in ULIP plans is Rs. 1500/month and the maximum investment amount is Rs. 1,50,000 p.a.

 

2. Senior Citizen Savings Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) is a specialized savings scheme in India catering to the financial needs of senior citizens who are 60 years and above. It provides them with a secure avenue for their savings and financial stability during retirement.

  1. Tenure and Extensions: The scheme has a fixed tenure of five years, which can be extended for an additional three years after maturity. This ensures a longer investment horizon for seniors.
  2. Investment Limit: Seniors can open multiple SCSS accounts, but the total investment amount cannot exceed the maximum limit, which is capped at Rs. 15 lakhs.
  3. Safety and Reliability: The scheme is backed by the government, offering the utmost security and reliability for senior citizens' investments.
  4. Premature Withdrawals: While the scheme encourages long-term investments, it allows premature withdrawals after one year, albeit with a penalty.
  5. Regular Income: SCSS provides senior citizens with a regular and predictable income stream, which can help them meet their day-to-day expenses during retirement.
  6. Tax Benefits: Deposits made under SCSS are eligible for tax deductions under Section 80C of the Income Tax Act, up to the prescribed limit.

 

3. National Pension Scheme(NPS)

The National Pension Scheme (NPS) is a government-backed retirement savings and investment plan designed to provide financial security during one's post-employment years.  It encourages individuals to save and invest for their post-retirement financial needs.

  1. Choice of Investment Plans: NPS offers two investment options: Active Choice and Auto Choice. Active Choice empowers investors to decide the allocation of their investments among equity, corporate bonds, and government securities. Auto Choice, on the other hand, automatically adjusts the asset allocation based on the investor's age.
  2. Tax Benefits: NPS offers tax benefits at various stages. Contributions to NPS are eligible for deductions under Section 80C, and an additional tax benefit on employer contributions under Section 80CCD(2). Furthermore, a portion of the corpus is tax-free upon retirement, while the annuity income is taxable at the individual's applicable tax rate.
  3. Regulated by PFRDA: The Pension Fund Regulatory and Development Authority (PFRDA) regulates and oversees NPS, ensuring transparency, governance, and investor protection.
  4. Choice and Flexibility: NPS offers flexibility in terms of investment choice, asset allocation, and contribution amounts. Subscribers can tailor their NPS accounts to align with their risk tolerance and financial goals.

 

4. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme aimed at providing financial security and stability to senior citizens aged 60 years and above, making it an ideal choice for those in their retirement years in India. 

  1. Pension Frequency: PMVVY provides pension payments on a monthly, quarterly, half-yearly, or annual basis, allowing flexibility in choosing the payout frequency.
  2. Minimum and Maximum Purchase Price: PMVVY allows policyholders to choose the purchase price based on the pension amount they desire. There are specified minimum and maximum purchase prices, ensuring affordability and flexibility.
  3. Loan Facility: Policyholders have the option to avail loans against their PMVVY policy after three policy years, offering liquidity in case of urgent financial requirements.
  4. Death Benefit: In the unfortunate event of the policyholder's demise during the policy term, the purchase price is returned to the nominee, providing some financial support in challenging times.
  5. No Medical Examination: PMVVY does not require policyholders to undergo a medical examination, simplifying the application process.
  6. Income Tax Benefits: Premiums paid for PMVVY are eligible for a tax deduction under Section 80C, up to specified limits.

 

5. Post Office Monthly Income Scheme (POMIS)

The Post Office Monthly Income Scheme (POMIS) is a popular savings scheme offered by the Indian postal service, designed to provide individuals with a regular and stable monthly income. 

  1. Investment Tenure: POMIS comes with a fixed investment tenure of 5 years, providing investors with a medium-term income option.
  2. Minimum and Maximum Investment: The minimum investment amount for a single POMIS account is INR 1500, while the maximum investment for an individual is capped at INR 4.5 lakhs
  3. Joint Accounts: POMIS allows the opening of joint accounts, providing financial flexibility and benefits for investors.
  4. Nomination Facility: Investors can nominate a beneficiary who will receive the accumulated funds in case of the investor's demise.
  5. Regular Monthly Income: The primary benefit of POMIS is the assurance of a consistent monthly income, which can help meet routine expenses.
  6. Interest Income: The interest earned from POMIS is taxable, but investors can benefit from tax deductions under Section 80C on the initial investment.

 

6. Public Provident Fund (PPF)

The Public Provident Fund (PPF) stands as a favored long-term savings and investment program provided by the Indian Government. It's designed to encourage individuals to save for their retirement, create a financial income for the future, and enjoy the benefits of compounding interest.

  1. Tax Benefits: PPF provides tax benefits under Section 80C of the Income Tax Act, allowing investors to claim deductions on their contributions up to a specified limit
  2. Annual Deposits: Investors can make a minimum annual deposit of INR 500 and a maximum deposit of INR 1.5 lakhs in a financial year. Deposits can be made in one or more installments.
  3. Loan Facility: After the completion of one year, investors can avail of loans against their PPF deposits, providing a source of financial support.
  4. Partial Withdrawals: PPF allows partial withdrawals from the 7th year onward, providing flexibility in managing financial needs.
  5. Steady Savings: It encourages disciplined and steady savings, as investors are required to deposit a minimum amount annually.

 

7. Bank Fixed Deposits

Bank Fixed Deposits (FDs) are a common and secure investment option provided by banks in India where individuals deposit a lump sum amount with a bank for a predetermined period, which can vary from a few days to several years. It offers individuals an opportunity to grow their savings while keeping their investments safe. 

  1. Interest Payout Options: Investors can choose how they want to receive the interest income generated by their FDs. It can be paid out monthly, quarterly, annually, or at maturity, depending on the bank's offerings.
  2. Auto-Renewal: Many banks offer auto-renewal options where the FD is reinvested for the same tenure at the prevailing interest rates upon maturity.
  3. Loan Against FD: In case of a financial emergency, individuals can avail of loans against their FDs. These loans are typically offered at lower interest rates compared to unsecured loans.
  4. Safety: Bank FDs are considered one of the safest investment options due to the guarantee provided by the bank, ensuring the safety of the principal amount and interest earnings.
  5. Fixed Returns: FDs offer the best return on investment, which can be beneficial for individuals seeking stability in their investment portfolio.
  6. Liquidity: While FDs have a fixed tenure, they also offer liquidity through loan facilities, premature withdrawal options (with a penalty), and easy access to funds at maturity.
  7. Tax Benefits: Some FDs offer tax benefits under Section 80C of the Income Tax Act, depending on the lock-in period and other conditions.

 

8. Direct Equity

Direct equity, also known as stocks or shares, is a common investment option where individuals invest directly in the equity shares of publicly traded companies. It is a way to own a piece of a company and participate in its growth and profitability. When you invest in direct equity, you become a shareholder and have ownership in the company. The number of shares you hold is proportional to your ownership stake.

  1. Liquidity: Stocks are traded on stock exchanges, making them highly liquid. You can buy and sell shares on trading days as per market conditions.
  2. Dividend Income: Some companies distribute a portion of their profits as dividends to shareholders. Direct equity investments may generate dividend income.
  3. Capital Gains: Investors can benefit from capital gains when the stock's market price increases, allowing them to sell their shares at a higher price than the purchase cost.
  4. Wealth Creation: Direct equity investments have the potential for significant wealth creation over the long term, as stock prices can appreciate substantially.
  5. Transparency: Information about publicly traded companies is easily available, allowing investors to make informed decisions.

 

9. Mutual Funds

Mutual funds are a popular investment option that allows individuals to pool their money together to invest in a diversified portfolio of stocks, bonds, or other securities. Professional fund managers manage these investments, taking charge of investment decisions for the benefit of investors.

  1. Professional Management: Mutual funds are managed by experienced fund managers who make investment decisions, aiming to generate returns for investors.
  2. Diversification: Mutual funds spread investments across a range of securities, reducing risk by not relying on the performance of a single asset.
  3. Liquidity: Units of mutual funds can typically be bought or sold on any business day, offering high liquidity.
  4. NAV (Net Asset Value): The value of one unit of a mutual fund is known as its Net Asset Value (NAV). It reflects the fund's market value and is calculated daily.
  5. Affordability: Mutual funds offer an affordable way to access diversified portfolios that would typically require significant capital to replicate individually.
  6. Liquidity: Investors can buy or sell mutual fund units easily, providing liquidity and flexibility in managing investments.
  7. Tax Benefits: Some mutual funds offer tax benefits, such as Equity-Linked Savings Schemes (ELSS) that provide deductions under Section 80C of the Income Tax Act.

 

10. Real Estate

Real estate is a tangible asset class that comprises land, buildings, and natural resources. Investing in real estate involves purchasing, owning, managing, and selling these properties for potential financial gains. 

  1. Income Potential: Real estate can generate rental income if you lease out properties like residential or commercial buildings.
  2. Appreciation: Property values can appreciate over time, potentially providing capital gains when you sell.
  3. Tax Benefits: Many countries offer tax advantages to real estate investors, such as deductions on mortgage interest and property taxes.
  4. Hedge Against Inflation: Real estate often performs well during inflationary periods, as property values and rental income tend to rise.
  5. Asset Appreciation: Real estate assets often appreciate, contributing to long-term wealth creation.

 

When should you start investing in investment plans?

You should consider starting your investment journey as soon as possible, and the ideal time to begin investing in investment plans is typically determined by the following factors:

1. Clear Financial Goals

Setting precise financial objectives is the foundation of your investment journey. Before you begin investing, take the time to define what you want to achieve. Are you saving for a down payment on a house, your child's education, or a comfortable retirement?

Identifying your goals and their timelines helps you determine how much you need to invest and the level of risk you can tolerate. For example, if you have a long-term goal like retirement, you can afford to take more risks in the stock market. On the other hand, if you're saving for a short-term goal like buying a car, you may want safer, low-risk investments.

2. Investable Funds

To start investing, you need investable funds – money that you can afford to put into investments without compromising your daily expenses and financial obligations. These funds should be separate from your emergency savings. Review your budget and identify surplus funds that can be directed toward investments. 

It's important to maintain a balance, ensuring you have enough liquidity for emergencies while still committing to regular investments. The amount you can invest may vary, but the key is to start with what you can and gradually increase it as your financial situation improves.

3. Education and Research

Investing is not a one-size-fits-all endeavour, and it's crucial to educate yourself about the different investment options available. Spend time researching and understanding the risks and potential returns associated with various assets such as stocks, bonds, mutual funds, real estate, and more. 

Knowledge is your best defence against making highly investment decisions. There are various resources available, including books, online courses, and financial news outlets, to help you gain a better understanding of the investment landscape.

4. Consistency

Consistency in investing is a key factor in long-term financial success. Developing a habit of regular investing, known as dollar-cost averaging, involves investing a fixed amount at regular intervals, regardless of market conditions. This approach helps in reducing the influence of market fluctuations.

During market downturns, your fixed investment buys more shares, and when prices rise, you benefit from the appreciation in the value of your investments. Consistency also reinforces discipline, preventing emotional, knee-jerk reactions to market fluctuations. The compounding effect of consistent investments over time can significantly increase your wealth and help you achieve your financial goals.

 

How to Choose the Best Investment Plan with High Returns? 

Choosing the best investment options in India is a significant financial decision and requires careful consideration. Here's a guide on how to select the right investment plan:

Identify Your Risk Tolerance: Your risk tolerance is a critical factor. Some investments come with higher risks but offer the potential for greater returns, while others are more conservative with lower risks. Identify your comfort level with market fluctuations and the possibility of losses.

Determine Your Investment Horizon: Consider the time frame you have for your investments. Short-term goals may require more stable, low-risk investments, while long-term goals can afford the volatility of higher-risk options.

Explore Different Investment Options: Research and explore various investment options, including stocks, bonds, mutual funds, real estate, and more. Each has its risk-reward profile. Diversification among various asset classes can effectively control risk.

Consider Liquidity Needs: Identify your liquidity needs. Some investments may tie up your money for a longer period. Ensure you have funds easily available for emergencies.

 

What documents are required to buy investment plans?

When buying investment plans, you may need to provide certain documents as part of the application process. While the specific requirements can vary depending on the type of investment and the financial institution you're dealing with, here's a general list of common documents you might need:

KYC Documents:  This can include documents like your Aadhaar card, voter ID, or driver's license, recent passport-sized photographs

Nomination Form: In the event of your demise, a nomination form allows you to specify who should receive the investment benefits. You'll need to provide the details of the nominee.

ECS Mandate: If you plan to make regular contributions through Electronic Clearing Service (ECS), you might need to fill out an ECS mandate form, authorizing the automatic transfer of funds.

 

How to Buy the Best Return On Investment Plan from Okbima?

To buy the best investment plan with high returns from Okbima, follow these simple steps:

Step 1: Visit the Okbima Website and compare the different plans to find the one that aligns with your financial goals and risk tolerance.

Step 2: Select the premium amount, and make the initial payment through the secure payment gateway provided by Okbima. You can choose from various payment options, including debit/credit cards, net banking, or other digital payment methods.

Step 3: After completing the application and document verification process, Okbima will process your request. Once approved, you'll receive the investment plan documents and policy details.

 

Conclusion

In conclusion, the year 2024 offers a lot of the best investment options in India for individuals who seeking financial growth and security. From traditional choices like Fixed Deposits and Public Provident Funds to modern options such as Mutual Funds, ULIPs, and direct equity investments, there's a diverse range of avenues to explore. The best investment options relies on your specific financial objectives, risk appetite, and investment horizon. Diversifying your investments across multiple options can further mitigate risks and enhance returns. Always conduct thorough research and consider seeking advice from financial experts to make informed investment decisions that align with your unique financial aspirations.

 

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