5 Best Financial Investments in India: Invest in Gold, PPF, ULIPS, MF Debt Funds, and Mid-Cap Equity Funds

Investment

oi-Vipul Das

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The year 2020 begins with new potential for profitability and analysts have also predicted that Indian stocks will not see a significant decline from the current situation. This suggests that 2020 will be a much better year for finances, and you can seize this opportunity with the right resources to invest your funds.

In the mid-year 2019 update of World Economic Situations and Prospects (WESP), it was stated that India’s economy is expected to grow by 7.1% for fiscal year 2020. In this article, I will suggest the 5 best personal finance methods to invest your money wisely and efficiently.

5 best financial tools to invest in 2020

Invest in gold

Gold is a great conventional investment medium. You can invest in gold by buying gold materials or you can buy gold in the form of traded funds or bonds. Apart from this, you can also invest in many mutual funds in the form of gold. And investment analysts believe that investing in gold could generate higher returns this fiscal year. Gold has always become a long-term capital appreciation as it does well in the worst-case scenario of the financial market.

Invest in mutual funds

Investors who don’t want to take any kind of risk can invest in debt funds on which returns are almost guaranteed. Debt Mutual Funds is an open-ended fund policy aimed at keeping investors in the portfolio’s success and generating good returns. This type of investment strategy will give you a better return optionally on term deposits.

Invest in a public provident fund

The government recently said that for the third quarter of the current economic year, the interest rate on the small savings plan will remain the same. This is good news for small investors, as many banks have reduced their fixed deposit rates as the Reserve Bank of India seeks to introduce key policy changes. With a duration of 15 years, it is one of the best means of investment to make savings profitable.

Invest in ULIPS

Unit-linked insurance plans offer the value of tax-free termination, low cost coverage, liquidity structuring and the convenience of fund transition. Many companies have now reduced their allowance rates. And most companies reimburse mortality costs on maturity as well. With this method, investors can allocate their money according to their risk potential so that their portfolio can be balanced. This investment strategy offers premium returns and the premium can be paid monthly or annually as a lump sum.

Invest in mid-cap equity funds

It is one of the best investment tools for investing as it focuses on mid cap companies in the investment market. These mid-cap companies range from 100 to 250 on the SEBI classification list. Investors will be able to prosper tremendously if these companies grow into large cap companies in the financial market. It is therefore recommended that you probably only invest in these if you have a high risk profile and an investment horizon of around 3 to 5 years.

About the Author

Vipul Das is the financial writer for Goodreturns.in and has been writing finance related articles and content for the past 1 year.


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