There are many investment options in India, but have you thought about the most common and easy-to-execute options that can be maintained throughout your life? Here are six common investment options:
1. Stocks: Stocks, also known as shares, are a very popular form of investment. Investing in stocks refers to buying equity in a publicly traded company. It offers the highest year-on-year return compared to any other instrument.
2. Gold: Gold has proven to be a very good form of investment that can preserve the value of your money. It has provided anywhere from 10-12% CAGR returns over the last few decades and is a favorite during fearful market conditions.
3. PPF (Public Provident Fund): It is an Exempt-Exempt-Exempt model of investment provided by the government, which allows you to save tax at every stage of investment, including withdrawal. It has historically been one of the best forms of safe investment, but nowadays is losing its shine due to low interest rates.
4. Real Estate: Real estate is an attractive instrument that can be used to acquire assets and can provide very good returns in the long term. However, it has drawbacks when it comes to liquidity.
5. Fixed Deposit: This is by far the most common way of investment and is considered very safe. However, due to very low interest rates, it can be tough to beat inflation with fixed deposits.
6. Mutual Funds: When you don’t want to invest in and track your own portfolio, mutual funds come to the rescue. They pool money from investors and invest in diversified assets, including equity, debt, government bonds, and securities.
Nicely explained different types of investment
Thank you:)