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The world of investment offers several options to investors to choose from. With so many different types of investments in India to choose from, it might get overwhelming for an investor to choose the right investment option for their investment portfolio. Let’s look at a few investment options that can opt for in 2022 rather than letting your money sit idle in your bank account. Before we dive into different investment options that you can consider for your portfolio, let’s understand the importance of investing.
Importance Of Investing
Here are the top benefits of investing your money in different investment options:
- It helps to grow money and support in wealth creation
- It benefits an investor to enjoy tax benefits on their investments, thereby reducing their tax outgo
- It supports an investor to earn inflation-beating returns on their investments
- It aids to meet one’s financial objectives
- It aids to secure one’s financial future
- It allows an investor to begin or expand your business
- It helps to save for one’s retirement
Investment Options To Opt For In 2022:
Mutual fund investments are financial instruments that pool the money of several investors and invest it in varying securities such as fixed income instruments, stocks, gold, money market instruments, real estate, and cash and cash equivalents. The pooled investment is professionally managed by a mutual fund expert known as a fund manager who along with his team of analysts and researchers works around the clock to find the best mutual funds investment plans for an investor.
Post Office Monthly Income Scheme (POMIS)
Backed by the government of India, a POMIS scheme guarantees annual returns to its investors. The rate of returns is predetermined at the time of investing in these schemes. However, an investor also has the flexibility to opt for a fixed monthly payout. POMIS schemes can be ideal for someone with a low-risk appetite as they offer stable and fixed returns. The investment duration of these schemes is five years.
An investor might consider directly investing in stocks or equities if they wish to earn substantially higher returns at the expense of high-risk exposure. These investment options can be considered ideal for an investor looking to fulfil their long-term financial goals. When an individual purchases shares of a company, they become part owners of that particular company.
Real estate investment can be considered one of the fastest-growing sectors in India. It holds vast opportunities for varying industries such as housing, retail, commercial, hospitality, manufacturing, etc. An investor can either invest in real estate mutual funds or commercial properties or even residential properties to capitalize on their investments. The risk-reward ratio enjoyed by real estate investment is high. One must understand that timing is an essential factor in real estate investment. Note must be taken that real estate investments are usually highly illiquid in nature.