Starting Your Investment Journey? Know About 7 Best Investment Schemes

Got a new job or want to start investing now that you are earning enough or have some other reason? Know how to start your investment journey the right way. After all, better late than never!!

Irrespective of the amount invested or the scheme one chooses, people must invest to ensure that they create sustainable wealth for themselves and their future generations. Everyone enjoys and aspires to financial security. While beginners might find investment a risky affair the best investment schemes come with several benefits as compared to the traditional way of saving money.

Before one indulges in investment, it is important to get a basic about the significance of investment

Significance of Investment

A Strong Source of Income: With the ongoing pandemic and other crises that one faces in life, it is quite clear that relying solely on a regular job as the main source of income is not a smart idea. The investment provides a second source of income through which returns can be earned, and thus avoid any financial hardship in the future.

Brings in Financial Independence: If one invests in the best investment scheme, they can be sure of enjoying financial independence. Be it at the early age of work or retirement, investing in the right plan, the right amount for the right time allows a comfortable financial setup.

Enables Following Passion: Today, several people are stuck in a job they are not interested in or might not be their dream work. However, financial issuers and the need to support family members lead them to take up such jobs. This cycle can be broken through investment. By earning a significant amount of money in an investment, they can enjoy the liberty to follow their passion.

Beats Inflation: Inflation can hit an economy at any point and can affect anyone. But combating such a situation is possible by opting best investment plan. With a steady return from such plans, one can handle such a situation easily.

Earn Tax Benefits: Individuals can gain several tax benefits upon investing. Investment products such as long-term fixed deposits, PPF, Tax saving bonds, ELSS, and other plans that come under section 80C of the 1961 Income Tax Act can save on taxes.

Factors to Consider Before Investing

When planning to invest, there are several things that one must keep in mind. Here are some of the points:

Financial Goals: Before determining the best investment plan to opt for, it is important to set a financial goal, short-term as well as long-term. They can do anything ranging from education, health, and international trip to marriage or buying gadgets. With a set goal in focus, it would be easy to choose and make an informed decision.

Planning Future Expenses: Investment is all about having the extra amount of money to be able to meet future demands. Therefore, one must plan out the major events or purchases that will require significant money in the future. This will help in choosing invest scheme and accordingly, the return amount can be used for the fulfillment of the upcoming expenses.

Chalking out Present Expenses: When choosing the best investment plan in addition to future expenses, one must also plan out their present expenses. This will help in deciding the amount of money one would want to invest on a monthly, quarterly, or yearly basis.

Monetary Dependents: For beginners who are planning to invest, it would be best to consider their financial dependents. This will not only help in determining the amount required in the saving pool for the present expenses but also set a goal for the future.

Types Of Investment

Low-Risk Investment

As the name suggests, these are investments that come with low risk. This means the investors can expect reliability, stability, and growth in value without the risk of facing drastic loss. Here are the best investment options in India, under the low-risk category

Sukanya Samriddhi Yojana: This is a popular kind of investment that is beneficial for girl children. The account can be opened at post offices as well as commercial banks. Additionally, individuals can enjoy tax benefits under Section 80C of the Income Tax Act 1961.

Post Office Monthly Income Schemes: The scheme is best for those looking for no risk in their investment with a guaranteed return. The plan is completely taxable and does not come with Tax Deduction at Source (TDS.)

Public Provident Fund (PPF): This is considered one of the best and most reliable investment options that come with several benefits. It is ideal for those who are salaried people. The interest from this scheme is not taxable.

High-Risk Investment

The primary focus of this kind of investment is a significant amount of capital growth in the long run. Though they incur fluctuations, they also provide the facility to gain a long-term return. Investment plans are as follows:

Direct Equities: Equities are the best place to invest for those trying to achieve financial goals. It has a proven record of significant return in the long run. Thus, with equity investment, individuals can purchase shares for the ownership of an organization and are entitled to losses and gains in the same business.

Unit Linked Insurance Plans: Also known as ULIPs, this is one of the best investment options that offer return benefits of both investment and insurance. It also has the option to move money from different risk belts ranging from high and medium to low. It allows investing money in different fund options. It also helps in allocating funds and provides insurance coverage.

Mutual Funds: With mutual funds, money is collected from several investors and then later invested in the bond and stocks of a particular company. A mutual fund is shared by many investors and is diversified in investments in multiple assets. Mutual Fund categorizes funds in bonds and stocks.