There are many types and forms of investments in India and you need to understand your requirements before you can zero in on one and invest your money.
Though the traditional forms of investments such as insurance policies and National Saving Certificates (NSCs) are hugely popular in the Indian market, there has been a rising interest in other forms of investment too. There are people who do not want their money to get stuck for huge number of years; hence they opt for short-term investments such as cash investment and so on. Let us check into other alternatives which are gaining popularity among Indian investors.
Cash Equivalents: These are short-term schemes where the interest is calculated as a percentage of the principal amount deposited with banks or any other financial institution which is recognized by the government. This securities included are short-term bonds, treasury bills, commercial paper, and so on which can be exchanged for cash in hand. This type of investment does not take a lot of time and mature between three and twelve months. But that does not mean there are no long-term plans involved here; if the investor wants he or she can opt for plans which are over 12 months.
Bank Deposits: Traditionally one of the most popular forms of investment in the country, such kind of investment holds fort even when other forms are gaining immense popularity. According to RBI statistics, the total amount of money deposited is INR 35, 68,435 crore. Usually the investor’s income is in the form of interest which calculated as per the tenure chosen by the investor. The interest can be provided to the investor on a monthly or a quarterly or yearly basis, the choice is that of the investor. Being a bank deposit, investors can also take bank loans over the deposit where the investor is entitled to approximately 90 percent of the deposit principal. Primarily a mode to secure the capital amount, this is perfect for retired professionals or people who do not have a steady income.
Bonds: Also known as a debt investment, it is usually money you loan to an issuer that needs cash. Often issues in cumulative and non-cumulative form, the interest rate calculated are usually eight percent per annum. The repayment policy might vary from company to company but usually no interest is calculated once the bond crosses the expiry date. Unlike other investing plans, there is no limit for bond investment in India.
You can also check other alternative forms of investments across banks and financial institutions in the country. As the stock market around the world fluctuates, many investors from around the world are looking into emerging markets like India for safe and secure investment such as debt insurance. Hence, check the market scenario and invest as per your requirements. But be careful because without proper research you can loose huge amount of money within a short span of time.