The Indian financial market offers investor a huge variety when it comes to investment options. The market caters to the needs of a flourishing businessman to that if a salaried commoner. The Indian investors are broadly classified in two categories Risky asset class and Risk – free asset class. This classification is done on the basis of their risk taking appetite. Below are the investment plans, explained as per categories –
Investment options for Risky Asset Class
These are the amongst best investment options in India for someone seeking long term investment as it offers high returns over longer time frame. It is one of the riskiest investment options to opt for as the risk of loss of capital is very high. This avenue is also great for the NRI’s to invest in. They can do this by opening up a bank account and trading account in India.
This investment option gives you the benefit of increase in investment with cost efficiency, professional management, risk – diversion and a good regularity body. It is one of those investment plans that let you start with a minimum of Rs. 500. You can invest in the plan for a particular period of time and get your investment monitored by professionals.
Life Insurance Plans–
These investment plans are a contract between the buyer and insurance company. Under this plan, the insurance company pays a predetermined amount to the nominee of the policy in case of death of a buyer. The main focus of the policy is to offer financial assistance to the family of the policy holder in case of an eventuality. Life insurance is a traditional product that offers benefits only in case of eventuality. With the advent of ULIP plans, you can now get benefit of risk cover as well as the returns of equity market as the policy invests in equity linked instruments.
Investment plans for Risk Free Asset Class
This is one of the best investment options in India for the ones who don’t have a huge risk taking appetite. A fixed deposit allows you to deposit money into bank for a specific period of time. In this period you earn a certain interest rate on the deposit. Banks offer a higher interest rate on these accounts as compared to savings account.
National Savings Certificate offers the investor a fixed interest. This is the initiation of the Department of Post, Government of India. This investment option is absolutely risk free as it is supported by the Government. These plans mature after a period of 6 years and offer an interest rate of 8% per annum. Minimum investment amount is Rs. 500.
The other investment options that come under the risk-free asset class include PPF, bonds, recurring deposits etc.
Different investment options in India