More than only high returns, well-planned and sustainable investments are necessary to create a financially stable future. Some of the best investment options in India offer the potential to gain a significantly high return, especially for salaried individuals. They can afford to pay a periodic sum or accumulate a significant amount to invest at one-go.
However, they also need to consider the sum of investment, risks involved, and the probable returns first. Let’s take a look at some of the best investment options in India for salaried employees in 2019.
Long-term investment options –
- PPF – PPF or Public Provident Fund is one of the best long-term investment options available in the Indian financial market. It is a Government-backed scheme exclusively designed for salaried employees. The employee and employer contribute a total of 12% of the former’s basic salary every month towards the funds.
Flexible investment policy with assured returns –
- Fixed deposit – Fixed deposits are one of the most preferred investment options in India. An investor can earn a large assured return against a one-time investment and enjoy significant flexibility including options for monthly, quarterly, half-yearly, annual, cumulative, or non-cumulative interest option. A salaried employee can select an investment tenor according to their unique financial requirement.
NBFCs like Bajaj Finance offer a lucrative interest rate of 8.75% (which can increase to 9.10% for senior citizens) on their Fixed Deposits.
Policies with high liquidity –
- Recurring deposit – RDs are an excellent option for a salaried individual. The investor has to deposit a fixed amount in their RD account every month, and can earn a return at the end of the investment tenor. Recurring deposits usually accumulate an interest rate of 5% to 7% a year.
For better liquidity and returns –
- SIP – Systematic Investment Plans or SIPs allow an individual to invest in equity mutual funds on a regular basis. It is one of the best investment options in India for individuals who are willing to take more risk to earn more revenue.
Tax savings policy –
- National Pension Scheme – NPS is a Government-backed pension scheme where the subscribed individual regularly contributes towards a pension account. It is ideal for a salaried individual as the investor can earn a lump sum amount after their retirement. NPS schemes also offer tax benefits of up to 10% of their salary under Section 80CCD(1) of the Income Tax Act of India.
All of the above-mentioned investment options are ideal for salaried individuals as they can offer substantial returns with a variable degree of risk. One can invest in any one of them to earn guaranteed returns against their money.
