Where to Invest Money for Good Returns in India

The key to earning good returns in India is to understand your financial goals first. After determining your monthly cash flow (income less expenses), choosing the appropriate funds, and investing, the next step is to determine your investment strategy.

Best Options for Investment

Investing options should be based on your financial goals' longevity. Three years or less is considered a short term period, whereas a long term period is one that is greater than ten years. The following choices are the best for both long- and short-term horizons:

Mutual Funds

In order to achieve financial goals such as retirement or property ownership, equity mutual funds offer the best long-term wealth growth option. Because the top-performing equities mutual funds have produced annualized returns of about 20% over the past ten years, ordinary investors' initial investments of Rs. 1 lac have grown to Rs. 6 lac.

However, it is advised to either use an independent financial expert or go online and choose the best mutual fund based on historical performance in order to maximize the potential of mutual funds.

As there are several types of mutual funds based on risks, such as large-cap funds, mid-cap funds, and small-cap funds, you must also evaluate your level of risk tolerance. Thematic funds exist, such as pharma funds. More risky than mid-cap funds, then small-cap funds, and so on. Equity investments continue to be more tax-efficient and offer higher returns than other asset classes, even with the reintroduction of long-term capital gains tax. You can also receive tax benefits under section 80C from a few mutual funds, such as the Equity Linked Savings Scheme.

Real Estate

The attractiveness of this asset class is due to the gradual price decline. A wise long-term investment would be this. Greater safety and transparency for buyers have been provided by regulatory bodies like the Real Estate Regulatory Authority (RERA). Today, there are fewer fraudulent operations. Real estate is increasing once more as a result of increased urbanization, rising consumption, and more readily available mortgage options. Long term returns could be very significant in the affordable housing market. If you take out a mortgage loan under Sections 80C and 24 of the Income Tax Act of 1961, there are numerous tax advantages. Invest money in real estate. Maharashtra's Nashik is a green city and a base in Maharashtra. In the current polluted environment, everyone wants nature so people are moving towards nature, when Nashik becomes the state's preferred location in Maharashtra, real estate will increase automatically. should invest in 1 bhk Flats in Nashik because it is will give more ROI.

Stock Market

The best approach to get good returns is with stocks, provided you have a solid grasp of them. Find stocks that are now trading for less than they are actually worth. Over time, you can accumulate wealth by investing modest amounts in these stocks.

NPS

A minimum pension is guaranteed to subscribers under this government-sponsored program. A tax deduction of Rs. 1.5 lakhs per year and an additional tax deduction of Rs. 50,000 is available under section 80CCD (1B).  There are a variety of investing alternatives available here, and if you want to maximize your gains, select the aggressive option, which invests 50% in stocks, 30% in corporate bonds, and 20% in gilt funds.

PPF

Indian banks and post offices offer PPF accounts, also known as Public Provident Fund accounts. Despite its 15-year term, withdrawals are allowed as early as the seventh year. Investment capital, interest, and maturity sums are not taxed. According to the yields on government bonds, the interest rate changes every three months.

Initial Public Offerings

An IPO is when a firm first makes its shares available to the general public. Understanding a company's foundation and future prospects is crucial before investing. Investors in successful initial public offerings (IPOs) like Infosys have seen multiple times their initial investment return.

Systematic Investment Plans

Mutual funds' systematic investment plans give people who can't invest a large sum of money at once the option of investing small sums on a daily, weekly, or monthly basis. They can build long-term wealth by investing in equity markets. Starting with just Rs. 500 per month, you can gradually increase it as your income rises. You get the benefit of rupee cost averaging with this form of investing (lowering your average purchase price).