The year 2020 taught every living human being the importance of saving and investments. If you want to make the most of your money, here are the top ten places you may consider for parking it for higher returns:
- Fixed Deposits – FD schemes have forever been the most preferred choice for conservative investors. You can get up to 6.95% interest rate per annum from an FD scheme.
- Equity – The equity market may give higher returns than the best FD rates. However, they are highly volatile.
- Equity Mutual Funds – Equity mutual funds may generate higher returns than an FD scheme, but they carry market risks.
- Debt Mutual Funds – Debt mutual funds are relatively more stable than equity MFs, but they might come with credit or interest rate risks.
- National Pension Scheme – NPS is a retirement-focused fund managed by the PFRDA, and you can contribute as little as INR 1,000 to keep the account active.
- Public Provident Fund – PPF carries a sovereign guarantee and is a hundred per cent safe. However, the amount remains locked in for fifteen years.
- Senior Citizens' Saving Scheme – SCSS carries a sovereign guarantee but is available for senior citizens only.
- Pradhan Mantri Vaya Vandana Yojana – PMVVY provides assured pension for senior citizens. The rate of interest is usually higher than the best FD rates.
- Property – You can invest in real estate if you are certain about the potential of the property.
- Gold – Gold is considered as a safe-haven. However, gold prices depend on various macro-economic factors and may be volatile.
Conclusion
It's hard to find an investment portfolio without an FD scheme. FD schemes provide high returns, ample liquidity, and regular income. As a prudent investor, you can diversify your investments to minimise risks and maximise returns.
