The practice of preserving money has long been ingrained in the minds of Indian investors. Over several years, there have been several shifts in the Indian financial markets. As a direct consequence of this development, financially knowledgeable investors in India now have access to many short term investments plan in addition to the long-term investment possibilities previously unavailable to them.
Financial freedom is always great because you don’t have to worry about your finances or monthly expenses. Of course, we all have our ideas of what we would like to achieve when investing in the short term investments plans or the best investment options and ensuring that we can maintain our principal while attaining high and guaranteed returns, but that can be achieved only in a utopian world.
Listed below are the best investment options available in India for any age or income
Bonds
It is not surprising that companies and government bodies also require funds to develop infrastructure, for which they issue public bonds to raise funds. To help these entities raise money, interested investors purchase bonds to help them raise funds.
Corporate bonds
Corporate bonds work the same way as government bonds, but they are issued by private companies, not by the government, and they serve the same purpose. Because the government doesn’t back these loans, they are a more risky option to consider. It should also be noted that high-yield bonds can carry a significantly higher level of risk, taking on a risk-return profile that is more similar to that of stocks than bonds if they are high-yield bonds.
Mutual funds
A mutual fund is the best short term investments vehicle that pools investors’ money to buy stocks or bonds on their behalf. A mutual fund is a kind of investment that allows investors to diversify – putting their money into various investments – to hedge against any losses associated with any single investment.
Exchange-traded funds
Mutual funds pool investor money to buy a collection of securities; exchange-traded funds, or ETFs, are similar to mutual funds in that they pool investor money to provide a single diversified investment for investors. In terms of how ETFs are sold, they are just like stocks in that investors buy shares of the fund just as they do when buying individual stocks in the market.
Dividend stocks
Investing in dividend stocks can provide both the fixed income from bonds and the growth from individual stocks and mutual funds. Companies are required by law to pay dividends to their shareholders regularly; therefore, dividends are often associated with profitable and stable companies. Even though some dividend stocks may not rise as high as growth-stage companies in share price movement, they can still be attractive to investors due to their dividends and the stability they provide.
Fixed Deposits
There is no doubt that Fixed Deposit accounts are one of the safest investment options available in India. The banks offer Fixed Deposit schemes with the best FD rates on Fixed Deposit accounts to their customers, and this service ensures your money’s safety and your investments’ stability.
ULIP
Investing in a Unit Linked Insurance Plan is also possible if you want to get market-linked returns and insurance peace of mind. A life insurance policy is one of the best ways of investing in different funds simultaneously, offering you the option of getting life insurance. There is no doubt that ULIP is one of the short term investments in India today. As one of the best investment options in India, this platform combines the advantages of insurance and investments in the stock market, allowing you to grow your investments systematically.
Senior Citizens’ Savings Scheme
Senior Citizen Saving Schemes are an investment plan for people approaching or who have reached retirement age. This type of investment is government backed and offers the benefits of investing a lump sum and getting a regular income stream after retirement.
Bond or debt mutual funds
It has been proven that investing in equity is a great way to get the best returns but also carries a large amount of risk. So, what can you do if you don’t want to take much risk and have a low-risk appetite? As a result, if this is the case, then Debt Mutual Funds is one of the best best short term investments plans and would be a good choice for you.
National Pension Scheme
You can invest in a National Pension Scheme to prepare for retirement. The National Pension System is a government-backed scheme governed by the Pension Fund Regulatory and Development Authority. The NPS allows you to have a strong retirement corpus at your disposal after you retire. In addition, salaried or self-employed investors can use the NPS retirement account as a retirement savings tool.
