Most investors are looking for high-return investment plans. For those investors - here is a question - what makes a good investment? Before you make any investment, you must know the key ingredients of a good investment. Once you know, you can select plans that match your needs. Today, we will discuss the best investment plans.
Key ingredients of best investment options
Below are the main ingredients of the best investment plan:
- You should have the freedom to invest and withdraw your money anytime
- Option to invest any amount
- You get the option to manage your risk - create a balance between risk-return
- The investment period should be flexible, lock-in should be not too long
- The investment option should provide you with tax benefits
Note - You need not select an investment plan only if it meets all the above criteria. Decide which factors hold more significance to you depending on your goals and invest accordingly.
Investment options in India
Direct equity: One of the best investment options for investors to create wealth is equity stocks. You get capital gains and dividend returns on your investments. However, you must understand the risk before you invest in direct stocks.
Mutual funds: One of the best investment plans for investors looking to diversify their portfolios. With mutual funds, you can invest in debt, equity and gold. There are thousands of mutual funds available across different categories. You must select ones that fit your investment horizon and risk profile.
National Pension Scheme: Investors looking for retirement planning can opt for this option. NPS is backed by the government of India and regulated by PFRDA. The return of your NPS investment will depend on the portfolio mix you select and the time you stay invested. You can withdraw your NPS investment only when you retire - at 60.
Senior Citizens' Saving Scheme (SCSS): It is an excellent investment option for people who are about to retire or already retired. It is also a government-backed investment option where you can invest a lumpsum amount and get a steady income post-retirement.
Real Estate Investment: Diversification is crucial for every investor. You can make a real estate investment if you have a large amount of capital to invest. Explore the option of both housing and commercial properties. Both have advantages, and you must select the one that matches your needs better.
RBI Bonds: If you are looking for the safest options, then RBI Bonds are the best investment plan for investment. These are issued to the public to raise money for various government projects. They come for a specific tenure, and at maturity, you receive your capital with interest.
Gold: Experts say that every investor must have some gold allocation. When we talk from an investment perspective, we are not discussing physical gold. Ideally, investors should have a 5 to 10% gold allocation. You can invest in Sovereign Gold Bonds issued by the RBI or buy ETFs.
Conclusion
Before you go, here is an essential thing you must understand. When we talk about the best investment plan, it is relative. Plan A may be the best option for your friend, but it does not guarantee that it is also the best option for you. Evaluate your financial needs and, based on those, select the best plan.
More than ever before Indian investors are taking a keen interest in passive investing and the financial industry is keeping pace with an ever-increasing bouquet of investment options now there are two ways by which passive investing is done in the equity markets you can either invest via a Mutual fund more specifically an Index Fund.Alternatively, you can purchase an exchange-traded fund or ETF both these instruments essentially mirror an index like the nifty or the Sensex but your options need not be restricted to only the broader indices, for instance, today there are ETFs for gold commodities banks health care, CPSC Bharat 22.For more information, you can visit our website: https://www.moneymoksh.com/best-investment-option-index-fund-or-etf/
You may have heard on Reddit about the $53,000 investment on GameStop by Keith Gill that turned into nearly $50 million on January 28, 2021.
While you can use both short term and long term call options to leverage your investments, long term call options are less volatile than short term call options.
A general warning: stock options are much more volatile than the underlying stocks.
You can lose your entire investment very quickly, so you should only allocate capital that you’re willing to risk in its whole entirety to options.
A call option gives the right to buy a stock at a certain price for a certain time frame.Using a Long Call Option to “Leverage Up” Stock investmentsHere is an example using a call option– As of October 4, 2021, Apple stock is currently trading at $138.61 a share.
A call option to buy Apple at the price of $150.00 a share expiring January 19, 2024 (about two years and 3 months from October 4, 2021) costs about $20.55 per share (one option contract is usually for 100 shares of the underlying stock – so one contract will cost you about $2,055).
