7 Best Investment Options in 2022 : Dear readers, Investment lets you draw a roadmap to achieve your financial goals. They can help you build a corpus of funds for the future. Investing to secure your future has become more important than ever.
There are multiple investment products and schemes that you can choose from. Some of them are market-linked, while others are government-based. Always keep in mind that an ideal investment should allow you to get the best return with minimum risk. Now, it can be confusing to understand where to invest money to get good returns. To help you start your journey of investing and saving, we have prepared a quick list of options.
Whichever you want to consider this article 7 Best Investment Options in 2022 will be very useful for you, we will give you all the information about the investment. So you can also make your future brighter by saving a little.
7 Best Investment Options in 2022
7 Best Investment Options in 2022 : There are many ways to save, but along with saving, increasing the amount of savings is the only way to truly save. We can invest the saved amount in many places and get profit. But if we want to have regular and balanced money, we should invest the saved amount.
Highlights of 7 Best Investment Options in 2022
7 Best Investment Options in 2022 : Government bonds are bonds offered by the government for direct purchase by individual investors. Earlier, these individual investors could only trade in government bonds through mutual fund investments. However, any individual investor can now invest directly in government bonds. The central idea of opening up government bonds to individual investors was to encourage domestic investor participation in the sovereign bond market.
These bonds are issued by both the state and central governments from time to time. The government already announces the date of their offer. State government bonds are known as State Development Loans (SDLs), while bonds issued by the Center are known as G-sec or simply government bonds.
You can get these government bonds from e-Kuber, government-listed merchant lenders, stock exchanges and brokerage firms. Government bonds are one of the best investment options because these government-backed bonds have no credit risk involved and can usually offer a predictable rate of return (if the investor invests until the maturity of the bond).
Sovereign gold bonds (SGB)
7 Best Investment Options in 2022 : If you don’t want to invest in physical gold, choosing sovereign gold bonds is a great way to invest your money. A major advantage of investing in sovereign gold bonds is that you get the full price of gold per gram prevailing on the day of sale.
This is different from selling physical gold as you lose some percentage since most sellers take a cut of the making charges. Further sovereign gold bond investors also get a semi-annual pay-out on initial investment (current interest rate for SGB on initial investment is 2.5%).
Sovereign Gold Bonds are issued exclusively by the Reserve Bank of India (RBI). You can buy this bond at any bank or post office in your area. Some stock brokerage firms also offer to sell sovereign gold bonds.
Sovereign gold bonds are fairly easy to maintain. Because it is available in one gram gold denominations. The minimum value of a gold bond you can buy is one gram. The maximum gold bond holding limit is 4 kg for individual buyers and 20 kg for trusts. Over the years, sovereign gold bonds have proven to be an ideal high-return investment.
7 Best Investment Options in 2022 : Over the years, fixed deposits have been a popular investment option among all types of investors. It is one of the safest forms of savings and considered one of the best investment plans for 3 years. Investing in fixed deposits is a great way to accumulate interest benefits for short and long term.
Interest rates on fixed deposits are higher than what a regular savings account offers. One of the major advantages of fixed deposits is that they can be liquidated quickly. So, if you need money for any emergency, you can go ahead and withdraw funds easily with a penalty depending on the time of exit.
Moreover, you don’t have to worry about losing your principal amount as fixed deposits are protected from market volatility. Hence, you can be sure of getting a fixed investment return.
You can also choose to renew your fixed deposit after 3 years if you wish. The fixed deposit renewal process is quite simple and hassle-free as you can set the renewal instructions when you make the deposit.
7 Best Investment Options in 2022 : One of the leading investment options in India as well as across the world – mutual funds are an ideal avenue of investment that can potentially provide long-term wealth creation and capital appreciation. It is a market linked investment option, which invests money in various financial instruments like equity, debt, money market instruments etc. Returns are generated according to the market performance of the underlying investments.
Although investments in mutual funds are subject to market risks and the risk exposure in mutual fund investments is generally higher, these products can provide better returns compared to other investment options in the market. Investors are advised to assess their risk profile as well as investment horizon to better evaluate investment in mutual funds.
Different types of mutual funds such as equity, hybrid and debt mutual funds can help an investor address short, medium and long-term financial goals and earn inflation-beating returns over the long term.
Gold exchange-traded funds (ETFs)
7 Best Investment Options in 2022 : Investing in gold exchange-traded funds is similar to buying physical gold. The main difference is that the physical gold will be stored with the depositor, and you will be offered bond units for them. Physical gold is used to get the actual value of the units you own.
To invest in gold exchange-traded funds, you need to have a demat account. A demat account is where your units will be stored. If you don’t have a demat account, you can choose to invest in gold funds offered by some banks.
One unit of a gold exchange-traded fund is equivalent to one gram of gold. So, whenever the gold rate increases the value of your unit increases. Gold exchange-traded funds are considered by many to be the best investment scheme with high returns as they can be traded like equity mutual funds in the open stock market.
So, if your ETFs are performing really well in the market, you can expect to get more profitable returns from them.
Another plus point about ETFs is that there is no mandatory lock-in period associated with them. You are free to sell your EFT units at any point of time.
Public Provident Fund (PPF)
7 Best Investment Options in 2022 : PPF account is one of the best investment options for individuals who have low risk appetite. PPF is a government backed scheme and the investment is also not linked to the market. Due to this, it offers guaranteed returns to protect the investment needs of many people. Since the returns from PPF accounts are fixed, they are used as a diversification tool for an investor’s portfolio.
Additionally, they also offer tax-saving benefits as PPF falls under the (EEE) category. In other words, all deposits made in PPF are deductible under Section 80C of the Income Tax Act (subject to a maximum contribution of Rs 1.5 lakh). Further, the accumulated amount and interest at the time of withdrawal are also exempted from tax. However, it is important to note that PPF account cannot be closed before maturity.
National Pension Scheme (NPS)
7 Best Investment Options in 2022 : NPS is one of the best investment options, which is government backed and offers pension solutions. The fund invests in bonds, government securities, equities and other investment options as per the investor’s choice and risk profile. It offers two options – Auto and Active. Under the auto option, funds are automatically invested in different assets, while the active option enables the investor to invest in assets as per their choice.
The lock-in period depends on the age of the investor, as the scheme matures only when the investor turns 60. As per this scheme, accumulated interest is tax free. And when one opts for lump sum payment on maturity, 40% of the maturity amount is tax free. If one chooses to receive pension after maturity, the amount is taxable as regular income.
An investor can ideally consult a financial advisor for more information on safe investments with best returns in India. They can help you choose an investment plan that includes various investment products that suit your financial goals – short-term as well as long-term.