The best investment is the investment made in the stock markets. Conversely, the recent crash in the stock market is a reason to be worried about. Considering the scenario, most middle-class investors are vigilant and not willing to endow their hard-earned funds in the stock market.
Also, most middle-class Indian consider it risky to invest in the stock markets as they aren’t financial enough strong to absorb the breakdowns of the market. Consequently, investing in equity isn’t an option feasible for their financial portfolio. A middle class person has nothing to gain and nothing to lose and thus, options like provident fund, insurance and fix deposits are the safest and the best investment options for them.
The following are the best investment option for the middle-class available in India:
The best investment options for the middle-class people in India majorly include Insurance Plans, Fix Deposits, Public Provident Funds (PPF), and National Saving Certificate (NSC).
Fixed deposits in the banks form the most important choose when we talk about the safest and the best investment options in India. This is because of the ability of these plans to offers considerable returns and the assured safety of the locked in investment. FDs are said to be the best investment options because returns are always assured in such plans. The term of a fixed deposit might vary from 15 days to 5 years and above. The returns from this investment plan depend upon the financial organization chosen by you. Commonly, a non-senior citizen might get returns at an interest rate of about 10% per annum. The rate or return goes a little higher for the senior citizens, i.e. the people with age higher than 60 years. The funds invested in this option remain safe and the investor need not worry about it till the end of the maturity period.
Insurance Plans are another kind to top the list of the best investment plans for the middle class. They are also amongst the popular choice of the people; especially the middle class. The best feature of this form of investment option is that you can be assured about the risk-free returns. This kind of investment plans offers a wide variety of options and also different levels of coverage. Insurance plans such as life insurance, motor insurance, home insurance, and health insurance are a few examples of this kind of investment. Insurance plans secure you against the uncertainties related to your life and every valuable thing of your life along with some returns.
Public Provident Funds
Public Provident Fund (PPF) is another name amongst the top investment options in India. These investment plans are a fine option to securely endow money for the future. The major benefit of this option is the high return assurance, especially for the people under the tax bracket of 30%. The rate of returns in case of PPFs might go as high as 9%. However, the term of this investment plan can be up to 15 years. With more or less no risk involvement and considerable returns, this is one of the most feasible options to choose for the middle-class people.
National Saving Certificate (NSC)
NSC or National Saving Certificate is another option amongst the best investment options for people of India. This investment plan comes with a fixed term of 6 years. NSCs also offer a tax benefit of up to Rs. 50,000, which is in addition to the Rs. 1,50,000 benefit under the Section 80C of the Income Tax Act. Therefore, all the given features make this investment option a secured one in all the aspects. A person investing in NSCs can start with an amount as less as Rs.100. The interest rate is 8 per cent and is calculated twice in a year.