If you are planning for investment in 2016, then this is the best time as the financial year is getting close very soon and you are gearing up for income tax saving planning as well. Most of the time, people do last minute income tax saving and fall into bad investment or misleading products. But if you are ready to start your personal finance planning for 2016, then you should start early. In this article I will share about the 6 best investment instruments in India where most people invest every year.
Best Investment Instrument to invest in 2016
If you can take some risk on investment, then you can capitalize the entire list of products and make your investment portfolio much diversified. But make sure you get enough knowledge and idea before investing in anything.
1. Mutual Fund: If you are tracking the financial news trends on last couple of years, you might have noticed that mutual fund investment has increased like anything in India. Now a days many people understood the power of mutual fund investment via SIP way. So, this is the best option among all if you are planning to invest for a long term point of view.
2. Buying Shares: Buying company shares directly need huge expertise and knowledge about the company. In case you are interested in this sector, only then go for this investment option. Never follow what your friends are doing or their advice blindly while investing in stock market directly.
3. PPF Account: Investing in PPF account is one of my favorite investment instrument as this will make sure you have invested for longest term and also build a habit of regular investment habit. try to maximize the PPF investment cap this year as much as possible to secure your future. If you plan properly, you can utilize your PPF money as retirement corpus also.
4. Bank FDS: Bank FDs are best instrument for short term investments and also to save income tax. If you have met with your long term investment goals, then you should capitalize on bank FDs. Look for the best banks offering highest interest on FDs and go for that. In fact it is very easy to open a FD online from any bank.
5. Recurring deposit: RDs are one of the most popular and old ways of saving regularly. This is one of the safest instrument of investment in India. Simply open a RD online with any bank or you can visit to post office also and save money regularly.
6. Invest in Gold/Silver: Investing in gold is a traditional way of investing India. With various Gold schemes launched by Mr. Modi this is the perfect time to buy some gold and keep it for long term. This is one of the old but the safest investment option in India.
So, which one is your favorite investment instrument in India among them? Don’t just keep your money idle in your banks savings account in case your bank doesn’t offer highest interest return on savings. Try to invest your money wisely to get the maximum utilization.