By Bhavin Geary
As Indian netizens shift their focus to investing in financial instruments that may be able to help them overcome inflation, here is a list of the top investment possibilities sorted in the order of the risk that they bear. 2023 is the year to combat inflation’s effects on regular spending and saving.
Investment trends like a greater emphasis on well-being post-covid, building wealth to prepare for a potential global recession, protecting oneself from the impact of an increase in the cost of basic necessities like gas, crude oil, and electricity supply, as well as managing tax implications, are expected to shape investor decisions in 2023.
The top five investment possibilities, as determined by our analysis of the market, are shown below.
- Mutual funds
Investments in mutual funds are subject to market risk, so one should think about the risk before making an investment. Mutual funds may turn out to be the best investment choice for you if you comprehend the market, its hazards, and how to take advantage of them to increase your money. You can build an asset portfolio based on your interests, whether you choose to invest for the long run or the short term.
Monthly systematic investment plans or systematic withdrawal plans may be suitable investment solutions for you if you want a steady income from mutual funds but have a low-risk tolerance. It can also be an attractive substitute if you wish to invest in India and get a big return.
- Direct Equity
Choosing whether you are looking for long-term or short-term investments should be one of your first steps. For long-term objectives, direct equity investing is one of the finest options. It has to do with corporate equity shares, which bind you legally in terms of your ownership of the business.
By purchasing shares of a corporation, you acquire the right to attend corporate meetings and have an impact on corporate decisions. In addition, based on the number of shares you own, you receive a distribution of the company’s profits.
- Post Office Saving Schemes
These deposit alternatives are offered to investors by India Post, the agency in charge of overseeing the nation’s postal system. This option for investing was initially introduced to help people establish a long-lasting habit of disciplined saving while also providing investment options to aid in financial planning.
What makes these plans stand out as one of the best investment options is how easy it is to enrol in or apply for them.
- Bonds
In the same way that people need money for social programmes and infrastructure construction, businesses and governments also do; as a result, they issue bonds to the public markets. Then, to help these organisations raise money, the interested parties buy the bonds.
- ULIP
For those who want protection and returns that are connected to the market, Unit Linked Insurance Plans (ULIPs) are one of the 80c investing alternatives available in India (ULIP). A life insurance policy that gives you the choice of life coverage and aids in your investment in various funds is something you can buy. To help you increase your money over time, this investment option combines the benefits of insurance and stock market trading.
Accessing specialized financial tools for investing is paramount for effective investment management, optimizing returns and achieving long-term financial objectives.
