It is difficult to arrive at the best investment option as the parameters to decide on the same varies from person to person. However, any investment that offers better returns and beats inflation, in the long run, can be the best investment option. Considering the interest rates are dwindling in India, which are the investment options that you can opt for to meet the mentioned criteria?

  • Mutual funds: They are one of the investment options that are least affected by inflation. They provide returns steadily but decent ones over time. The two common types of mutual fund investments that people are aware of: equity and debt funds. Equity funds invest mainly on shares while debt funds invest in fixed-income securities. Equity is ideal for risk-averse individuals as they provide returns over time while debt is best suited for those expecting quick returns.
  • Real estate: Although it is a risky investment, real estate is the most sought-after asset as well as an investment option. Also, you receive tax exemptions when you invest in real estate, provided you take a loan on it. If you remain invested in real estate for 5 years, you receive good returns as well.
  • Gold: It has been the perfect hedge to beat inflation. The demand for gold has been on the rise, and the supply also seems to be the same. It is one of the reasons why gold prices are soaring. They are the perfect risk-free investment tool and offer desired returns.
  • PPF: Public Provident Fund (PPF) is the safest investment instrument as the Indian Government backs them. The best part of this instrument is that it is fully tax-free. You need to invest only a minimum amount of INR 500. After the 3rd year of investment, you can take a loan against PPF too. You can invest in PPF if you want to fund your child’s education or plan your retirement.

Some of the best investment/brokerage apps presently in India are Kite, Angel BEE, Motilal Oswal, TradePlusOnline, and many others.

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