Best list for Investing Platforms in India - 3rd one is impressive! ~ Health Policy

Best list for Investing Platforms in India - 3rd one is impressive!


There are many investing avenues in India that give good returns. With an abundance of options, it is clear that one should not be sure where to invest. To declare a particular investment as 'the best', we need to analyze the need and risk appetite of one. There are investment options that fit an individual's goals and needs.
Indians generally prefer to invest in government-backed instruments as these are considered a safe investment route. Following are some of the most popular investment routes in India:

1. Bank Fixed Deposit (FD):

Bank FDs are considered to be one of the safest investment options in India as there is no example of bank defaulting on FDs. Bank FDs offer a way higher rate of interest than a daily savings checking account.Investments in 5-year tax-saving FDs fall under Section 80C of the Income Tax Act, 1961 and investors can deduct up to Rs 1,50,000 a year by investing in it.
FDs offer slightly higher interest rates for senior citizens. The rate of interest varies with investment tenure, amount, residential status (NRI or not), and bank. FDs come with a lock-in period. If you want to withdraw within the lock-in period, the bank will impose a penalty as a deduction on the interest earned on the investment. Apart from banks, other financial institutions also offer FD.

Pro:

Fixed deposits are a great way to save money and grow for the future. Read further to know the benefits of fixed deposits.

Secure Investments:

Returns from stocks, mutual funds and debt funds from FDs depend on the market unlike those that make FDs a more secure investment. Additionally, the fact that they provide guaranteed returns makes FDs a great option for limited amounts of money to invest.

Fixed Tenor:

An FD scheme comes with a minimum tenure of 6 months and maximum of 5 years. This ensures that you keep your money safe and get a reasonable profit on it.

Loan against FD:

When you are in a cash crisis instead of breaking your FD and paying a fine, you can take a loan against your FD, with a loan amount of up to 85% of the total FD value. Getting loans has become even easier with pre-approved offers from Bajaj Finserv. Share some details and get your pre-approved offer.

Flexible interest rate pay-out:

FDs allow you to choose the period, and when the interest is deposited in your FD account. You can choose between annual, monthly or maturity payments. FDs also provide high interest rates for senior citizens. Bajaj Finserv FDs, for example, offer an additional interest rate of 0.25% (above the current rate) for senior citizens.

Cons:

While FDs offer major benefits in terms of guaranteed returns, they also have some disadvantages, including:

Low returns:

While FD returns are guaranteed, they are lower than other short-term market-linked investments.

Liquidity:

Fines are withdrawn from the withdrawal of your FD before the maturity date. When you break your FD, you may get less interest on the total investment.

Tax Return:

The interest earned through your FD comes under the taxable slab of your income. If your earned interest is Rs. If it is more than 10,000, it will be deducted as TDS at the rate of 10%. For senior citizens, this minimum amount is Rs. Has been increased to 50,000.
To increase your tax benefits from FDs, go with a tax-saver FD. However, remember that if you open a joint account, the first holder of the deposit can get tax benefits as per Section 80C of the Income Tax Act, 1961.

2. Public Provident Fund (PPF):

PPF is a government-backed investment scheme. PPF investment has a lock-in period of 15 years. PPF is considered one of the safest investments, as sovereigns guarantee the scheme. Like bank FDs, PPFs offer a way higher rate of interest than a daily savings checking account.

Pros:

  • PPF Interest Rate Benefits
  • Extension of Tenure
  • Tax Benefits on PPF
  • Investment Security in PPF
  • Facility of Loans against PPF
  • Partial Withdrawals
  • PPF as a Pension Tool
  • Transparency in Calculation

Cons:

  • Fixed Interest Rate
  • Lower returns than Mutual Funds, NPS
  • Less flexible

3. National Pension Scheme (NPS):

NPS is another government supported retirement plan. The scheme is managed by the Pension Fund Regulatory and Development Authority (PFRDA) in India. NPS may be a combination of varied investments like liquid funds, fixed deposits and company bonds. There are various schemes under NPS, you can choose according to your requirement. Rate of interest in various funds.

Pros:

  • Additional Tax Benefit
  • Higher Fee to Intermediaries

Cons:

  • Tax on Maturity Proceeds
  • Mandatory Annuity
  • Low on Equity

4. Gold:

Investing in gold is a traditional investing. Indians are very fond of yellow metal. Gold is invested in the form of buying gold jewelry, coins and bars. Apart from holding physical gold, investment in gold can be made by investing in ETFs and sovereign gold bonds.

Pros:

  • Gold may be a quality hedge against a down market
  • Gold will still have value if paper currency inflates
  • There is an apparent upside to the value of gold

Cons:

  • Gold has a terrible historical comeback
  • Gold is worthless if things really go wrong
  • Gold sells only when you sell it

5. Equity-Linked Savings Scheme:

ELSS is the only equity-linked and mutual fund scheme, which falls under Section 80C of the Income Tax Act, 1961. The ELSS has the shortest lock-in period (3 years) among all section 80C Avenue. In addition, ELSS offers the highest return among the Section 80C options, and therefore, it is one of the most popular investment options in India. It provides the twin benefits of tax cuts and money increases. Investing in ELSS carries moderate risk.

Pros:

  • Compared to traditional tax saving instruments like Public Provident Fund (PPF), National Savings Certificate (NSC) and bank fixed deposits; ELSS funds have a very short duration.
  • While ELSS investments are closed for 3 years, PPF investments are closed for 15 years, NSC investments are closed for six years, and bank fixed deposits eligible for tax write-off are closed for 5 years. Since ELSS is an investment in equity markets and investing in it for a longer period than other asset classes can give you better returns.
  • You can also opt for SIP investments, which bring discipline in regular investment. If you opt for dividend plans, you can also get income from your investment amount in the lock in period.

Cons:

  • ELSS is not meant to put investors at risk. As with ELSS investment per share market investment, all risks associated with equity investment are related to ELSS.
  • So if you do not want to take this risk then it is better to avoid ELSS. Another disadvantage of ELSS is that you cannot withdraw your fund before the maturity date.
  • Other instruments such as PPF and bank deposits allow premature withdrawals, subject to certain conditions.

6. Recurring Deposit (RD):

Recurring deposits are an alternative to FD. Under RD, individuals regularly investing a certain amount of money. Like FDs, RDs also offer a much higher rate of interest than a regular savings bank account. You can present your RD investment as collateral to get a secured loan.

Apart from the investing methods covered in this article, other popular investment options in India are National Savings Certificate (NSC), stock market and real estate.

Pros:

  • Secured Investing Options with Guaranteed Returns
  • Banks offer up to 7.50% interest rate for recurring deposits based on principal amount and tenure.
  • Most banks offer RD products through net banking, investors can deposit online without any hassle.
  • Flexible Recurring Deposit Schemes that allow deposits of any amount at any time in India!
  • Investors can deposit from Rs 1000 to small and up to Rs large every month. 15 lakhs per month.
  • The customer is not required to make a lump sum investment to initiate recurring deposits.

Cons:

  • Interest rates are lower than fixed deposits. Customers get an interest rate of up to 9% for fixed deposits while interest for recurring deposits ranges from 7.5% to 8%.
  • Recurring deposits offer guaranteed but lower returns than other popular investment schemes such as mutual funds and SIPs.
  • If the interest amount is Rs. If it is more than 10% TDS will be deducted from interest under section 19A. 10,000 per year.
  • Withdrawals from a recurring deposit account before the end of the term can reduce the penalty or interest. Immediate evacuation is not possible even in case of financial emergency.
  • If RD is not flexible, the customer will not be able to change the monthly investment amount.

Conclusion:

Although, there are certain disadvantages, pros outweigh the diverse effects. Besides, if you are looking for safe and long term investment, these six investing platforms are most eligible in India 

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