Best Investment Option for Middle Class People In India
Are you belong to middle class in india and doing job? Well in that case, it is important for you to make good investment before you retire from the job. The best investment practice is to start as early as possible. Here we are suggesting some of the most high return investment options which will give you better return and safer return over the years. So what are you waiting for, check the investment option and start investing now.
SIP (Systematic Investment Plan)
One of the most popular and safest way to invest for long term. Yes, this is for the long term investment, for short term gain, you need to search other investment plans. You can choose different mutual fund SIPs which will give minimum 15 to 30% return per year. The return is defiantly depend on the share market’s move but it is one of the safest way to wealth creation for the long term gain. We have studied different data, which suggest that SIP is one of the best investment plan so far. You can check the best SIP mutual fund plans and decided which one to invest in.
You can start investing in SIP from Rs.500 per month. Once you start, depends on your scheme tenure, money will be deducted from your bank account automatically and you don’t need to worry at all. You must be thinking that money is being invested in share market, how it is going to be safe investment as market is always volatile, right?
Well, when you invest in SIP, it give you chance to get benefit of both high market and low market price. On fixed date of month, you buy SIP units, at whatever the price of NAV, if NAV is down, you get more benefit, If NAV is high, you are already in profit and buying more units. So, this way, you will get benefits of ups and down with SIP investment.
PPF (Public Provident Fund)
If you are job class worker, you must be having PF account. Under PF account you will get high interest rate (8-9% approx.). It is one of the super safest investment, as you will surely get your money you land to government. This is best way to earn more return but compared to mutual fund SIP, PPF does not give that much return. One of the disadvantage with PPF is that your money gets locked in for next 5 years from the date of investment.
There are ELSS scheme of Mutual fund (mostly used to save tax), which too get your money Locked for 3 years but there are more options available in SIP which does not have any lock in period.
Bank Fixed Deposit
One of the most old form of invest and super safe as well. You can deposit your money in long term bank FD and get regular return. Many of the retired people choose bank FD option to get return on regular intervals. But it is one of the low return scheme, with around just 7-8% return max. Also, if you falling in taxable range, you have to pay tax on that as well.
In such case, we recommend you to go with Mutual Fund SIP option, it is one of the best investment option for middle class/job class people in India.