5 top investment plans for salaried employees?

 

As there are multiple options for investment on offer today for salaried employees, it looks like a frightening task to settle on the proper investment plan. While investment plans are linked to the risk profile, time horizon and other factors, some investment platforms offer excellent options for you to start your investment journey towards wealth accumulation and growing rich.

Everyone wants those investments which have a high return and low risk of losing principal amount. This is often the rationale why many people are always on the lookout for top investment plans where they can double their money in a few months or years with little or no risk.

 

How risk affects your investment choices

1. Mutual Funds

Mutual funds are one of the most sought out investment options in India. Amongst mutual funds, equity mutual funds, especially, are the top-rated. This is due to their potential to supply overwhelming returns. A number of the top-performing funds have generated Cumulative Average Growth Returns of up to twenty during a decade. Although, one should notice that with such high rewards come high risks also. Also, it is advised that you may simply consult financial experts before making any decisions. There are many sorts of portfolios and designs of investing, but with mutual funds, you'll access the simplest of all to get excellent income. Investing in these funds is pretty simple and easy. Also, you'll start investing in mutual funds with a sum as low as Rs 500 a month.

2. National Pension Scheme

NPS is a government-backed retirement cum pension scheme. With the government guarantees backing the scheme, you get the much-needed safety for your investment. This scheme will provide you a monthly pension when you retire. Investing in NPS qualifies you for additional tax benefits under Section 80CCD (1B). It depends on the type of NPS account you hold. This deduction is over and above the regular deductions available under various sections like Section 80C, Section 80CCC and Section 80CCD. By doing this, you can save up to Rs 1.5 lakh a year. Under Section 80CCD(2), if you are one who falls in the high tax bracket. You can get your salary structured such that your employer contributes 10% of your salary without you having to do the same.

3. Public Provident Fund

Are you a risk-averse investor? Then the Public Provident Fund (PPF) is just the best investment option for you. PPF is one of the most popular tax-saving investment options for anyone, who is looking for saving tax while investing. So, the scheme is easy to start for those who are not internet savvy. You can open PPF account both in a bank or even in a post office. This scheme comes with a lock-in period of 15 years, with an option to extend your account in a block of five years. If you are a salaried person. Then you may find this as an excellent way to set aside a certain sum every month to invest in PPF.  You can also avail loan against the PPF balance. You can even make a premature withdrawal after the 7th year of opening the account. One of the most attractive features of a PPF account is that the interest you earn on this fund is free from taxation. You can start by investing a minimum of Rs 500 a month. Although, you cannot invest more than Rs 1,50,000 over a year.

4. Real Estate Investment

Do you have abundant money in hand? Then real estate is one of the best investment options you can avail for yourself. It is an excellent option for long-term investment. Introduction of RERA(Real Estate Regulation and Development Act) has further boosted this market. The industry is well regulated with the safety measures in place for buyers and sellers. With the fast-paced development and urbanisation, the demand for real estate has witnessed a rise like never before. Accessible home loans have removed the barriers to affordability.

5. Stock Market Investment

Are you looking for high returns? Then look for stock market investments. Although, Stock investments may not be simple to engage. They require monitoring of the performance of your stocks in real-time. Though there has been an introduction of taxing for long-term capital gains, the post-tax returns offered by stock markets are unmatchable. For investors who can’t afford to invest a considerable amount, stock markets provide the advantage of various small, mid and large-cap stocks. So, that you can invest your money in all of them by creating a balanced portfolio. You can adjust your portfolio depending on the risk and return you are targeting.