India has traditionally been a country with very intelligent and long-term investments. We have been relatively safe even during global recessions, because of smart wealth creating activities. So, what are the top investment options in India, that keep us safe even during adverse times?
Why Investing Is Important In India
Indian families are very conscious of creating an umbrella of security for their future - in the householder’s lifetime or for after. However, to find the right assets that will secure long-term financial stability, it is crucial to have some knowledge of the best investment options in India.
The Indian Economy and Market for Investment
The Indian economy has been on a steady growth path over the last decade, barring the market fluctuations due to standard business cycles. Compared to the rest of the world, which is sitting on a recession cliff, India is a much safer place to invest for long-term returns.
The Indian investment market offers options that give returns based on the individual risk appetite. For those who want assured returns, the returns could be lower, and more secure. For medium risk options, there is a balance of very well performing but slightly risky options, and low performing but very secure options. Then there are the high-risk investments which usually have the highest, but not assured returns. Each person can choose what is the best investment option for their capability to take risks.
Top 5 Investment Options in India
1. Life InsuranceA vast majority of Indians have been investing in life insurance for generations. It is the best way to ensure a family never faces financial problems even if any unexpected misfortune were to happen. IndiaFirst Life Insurance’s IndiaFirst Life Plan and IndiaFirst Life Guaranteed Protection Plus Plan are two of the best options in India with life insurance.
2. Fixed Deposits (FD)FDs are one of the safest investment options as their returns are unimpacted by market volatilities. More importantly, the principal amount is not depreciated. As FDs offer fixed interest rates for different terms, they make a strong addition to your portfolio as you can accrue high returns from various schemes. So, whether the market crashes or economy grows, your return rate is fixed and certain.
3. Mutual Funds(MF)MFs are market-linked investments, and naturally subject to market risks. However, they are also a safe investment option in India. A Balanced Mutual Fund is one the best ways to save for a secure future. Investing in a Systematic Investment Plan (SIP) is a very popular activity, wherein a fixed amount goes into the MF investment every month and returns compound over time.
Another very safe plan is the Debt Fund where investments are put into fixed income securities like bonds and treasury bills. Since they are government based, the security factor is extremely high.
4. ULIP PlanULIP (Unit Linked Insurance Plan) is a unique investment instrument that seamlessly combines wealth creation and insurance in one product. ULIP is the only investment plan that gives you the advantage of clubbing investment and insurance in a single policy. As ULIP is customizable, you can choose exactly where your money will be invested - in debt, equity, or a combination of both. IndiaFirst Life Insurance offers various types of ULIP plans such as the IndiaFirst Life Radiance Smart Investment Plan (RSIP). Compare the benefits of different types of Unit Linked Insurance Plan while factoring in your age group, financial goals, and risk appetite, before making a choice.
5. Precious Metals in Physical or Virtual FormGold as an investment is synonymous with almost every Indian household. While traditional forms like jewelry and bullion remain popular, the range of options has grown to include virtual investments. Sovereign Gold Bonds (SGBs), Gold Mutual Funds, and Gold ETFs (exchange-traded funds) have emerged as the leading methods for gold investment. You can also invest in silver and other precious metals through the commodities market and make a profit depending upon the market situations.
Factors To Consider Before Making An Investment Decision
The biggest factor that influences an investment decision is the ability to take risks, and the planning for family expenditures like children’s education, marriage, building a home, to name a few. Once you know whether you are a high-risk or low-risk taker, it becomes easy to decide what investment will be best for you.
Tips for Successful Investing in India
Here are some easy tips to invest smartly in India:
- Define your goals and create a financial plan
- Set realistic goals
- Start investing early and consistently
- Understand investing risks and invest in only what you clearly understand
- Keep a diversified portfolio
- Track investments and review your portfolio regularly
- Build an emergency fund
Choosing the Best Investment Option for You
The smartest investment is that which is safe, gives you good returns, and access to your wealth when you need it.
So, the best investment option for India is one that balances these three factors – your ability to take risks, clarity in wealth planning, and easy liquidity when you need your wealth.
Needless to say, investing for the long term will give a much better return as it helps balance market volatilities and offers better returns.
Customers 
Distributor 
Employee 
