From Gold to Mutual Fund: Popular Investment options in India

New Delhi: Investment has become the new normal in the financial ecosystem of India. Investors have a plethora of investment options ranging from safe government-backed schemes to high-growth equity options. Young investors generally prefer high-growth equity options, whereas senior citizens prefer investing their hard-earned money in fixed deposits. In this article, a range of investment options, like mutual funds, PPF (public provident fund), SCSS (senior citizen saving schemes), and NPS (national pension scheme), with their benefits and risks, are discussed.

Stocks/Equity: Investing in stocks can generate significantly higher returns compared to most other avenues. However, due to their volatility and inherent risk, they are best suited for investors who can withstand market fluctuations

Mutual funds: They are the funds that are linked to markets and are managed by fund managers. The fund managers decide where to invest the pooled money. The mutual funds are the diversified funds across equity and debt, thereby reducing the risk of uncertainty.

REITs (Real Estate Investment Trusts): REITs give investors exposure to real estate projects without the need to purchase property directly. They offer regular rental income, higher liquidity, and easier entry and exit than traditional real estate investment

Fixed Deposits (FDs): FDs are among the safest investment options, offering guaranteed returns. They are ideal for risk-averse investors prioritizing stability over high returns.

Public Provident Fund (PPF): Backed by the sovereign government, PPF ensures secure, long-term savings with steady returns. It also provides attractive tax benefits under Section 80C, encouraging disciplined investment.

Senior Citizen Savings Scheme (SCSS): The scheme is specifically designed for retirees. SCSS offers government-backed safety, relatively higher interest rates (8.2 percent presently), and regular payouts, ensuring a consistent income post-retirement.

Gold: Considering the rally that has been witnessed in gold prices, the yellow metal stands apart. Investment in gold brings higher returns.

Real Estate: Real estate investment can generate wealth and rental income over time. While it requires larger capital, it provides stability and asset appreciation, making it suitable for investors with a long-term outlook and higher budgets.

National Pension System (NPS): NPS is a cost-effective retirement plan offering market-linked returns and tax benefits. It helps individuals accumulate a secure retirement corpus.

ULIPs (Unit Linked Insurance Plans): ULIPs combine insurance protection with investment opportunities. A portion of the premium ensures life coverage, while the remainder is invested in market-linked funds for long-term wealth creation.