The purpose of investing in numerous financial instruments is to obtain good returns. By doing so, you may enjoy financial security and stability in the future.
With numerous investment options available in the market, making the right decision may become a cumbersome task.
Following are five smart investments that you must consider to invest in-
- Health insurance policies
It is rightly said that health is wealth. You may, therefore, buy medical insurance and secure your financial well-being in case of a hospitalization. Your insurance provider is liable to pay your medical expenses such as nursing charges, surgeon costs, consultation fees, and room rent charges, among others. Health insurance plans offer financial protection against the rising medical expenses and prevent out-of-pocket expenses. You may, therefore, consider investing in such a plan at the earliest.
- Stock market
Another possible avenue to park funds is in stock markets. Not only do stock markets offer high returns, but also are a long-term investment option. Stocks do not have a lock-in period, which means you may hold the stocks for as long as you want or may sell it whenever you wish to do so. You may also benefit from dividends and bonus shares. Moreover, you may avail of a wide range of options such as derivatives trading, delivery-based trading, or margin trading.
- Real estate
The real estate market in India has noticed an upswing in the past years. According to India Brand Equity Foundation (IBEF), this sector will grow by 30% over the next decade. You may, therefore, invest in this sector to reap good benefits. You may consider major sectors such as manufacturing, retail, commercial real estate, and hospitality, among others. The risk of such an investment is low, making it a perfect investment option for those seeking a good return on investments.
- Public Provident Fund
Public Provident Fund (PPF) is one of the most secure and reliable investment vehicles. You may open a PPF account at a bank or a post office. The deposited amount is locked in for a period of 15 years. You may, therefore, enjoy the benefit of compounding and earn a good lump sum amount. You may also borrow a loan on the balance of your PPF account. Currently, the interest rate on PPF account is 7.60%.
- Unit Linked Insurance Plans
Unit Linked Insurance Plans (ULIPs) are gaining popularity these days due to the dual benefits it has to offer. Such an instrument offers insurance coverage and is also an excellent vehicle for investment. A part of the premium amount is used to cover risk, while the remaining amount is used for further investment in mutual funds, stocks, and bonds. You may choose between debt-oriented funds, equity funds, or balanced funds based on your risk appetite. You may, therefore, invest in ULIPs and achieve your long-term financial goals quite easily.
The aforementioned investment vehicles help in maximizing your earning potential. You may, therefore, invest in avenues such as ULIPs, PPF, real estate, and the stock market. Further, you may buy health insurance online or visit your local branch to cover yourself against medical contingencies. By doing so, you may enjoy a high degree of financial security.