Best Investment Options for Beginners

Are you gearing up to start your first investment? Do you know the best investment options for beginners currently available? Are you thinking how to start your first investment?

Let’s discuss about various investment options available for a beginner to start financial planning.

It’s always tough for a new earner to decide how to start your first investment, as there are many well wishers and advisers available around us who can easily make us confused. Besides that, it is very hard to convince the beginners to save some part of their income monthly as well.

Anyway this article is not to motivate you to save for future, but to guide those people who are interested to start investment but not sure where they should put their money as there are many financial products with various types of risks. So we will consider here all the low risk and guaranteed return investments options available in India.

Best Investment Options for Beginners

Let’s discover the 5 such best investment options for beginners, where you don’t have to put much of your brain to get some guaranteed returns on investments.

Savings Account With Highest Interest Rates

Now a days many banks are offering good interest rates on your savings account balance itself.  This is a 100% risk free option, as you can keep the money in your control as well as earn some interest. There are few conditions, like you have to maintain a minimum balance etc. But you can check out such a bank and go ahead with a salary account or a savings account with them. In India you can find couple of banks like Yes Bank, Kotak Mahindra etc who are providing even more than 6% interest rate on savings account balance.

According to my friend, who is staying in USA shared that one can get such options by opening a BB&T banking account in US also. Although I don’t think the interest rate will be like us, as USA is a developed country & we are still a developing country 🙂

Start an FD (Fixed Deposit)

To open Fixed Deposit account online is one of the easiest thing you can do as a beginner. Almost every bank is providing online banking facility under which you can open a FD online even without visiting bank branch.

Choose the duration as per your target and set an auto-debit option. This will help you to earn some interest on your idle money. You can check out the latest FD interest rates of various banks. Check out the latest fixed deposit TDS rules as well.

Don’t have a PPF account yet, then start today only

PPF account is one of the best investment options for beginners if you are planning for long term wealth creation. In fact it is the most secure way one can get maximum compound interest.

Many people don’t know the long term benefit of PPF account. It’s very easy to open a PPF account in post office or with any bank these days. You can earn a very long term interest benefit of 8.5% and also be able to ready with a lump-sum amount after 15 years. Know all about PPF account here.

Post office savings schemes

These are the oldest and safest investment options which are still like old is gold. You can start with any post office schemes like RD (Recurring Deposit), NSC (National Savings Scheme),  Short term investment options like FDs etc. You have to open an account in post office and then start your first investment completely risk free.

Invest in Mutual Funds SIP way

Although investing in mutual fund doesn’t come under low risk investment options, but as I am talking here how to start your first investment as a beginner I think this mutual funds could be one of the best investment options for beginners. Investing in stock market gradually via Mutual fund way is one of the best way among all, provided you are planning to invest for a long term.

There are many Robo advisors in India who can help you to set up your own SIP within minutes. This will help you to make a good habit of investment and help you to invest for creating wealth for yourself in the long term.

So, as a beginner which one is your favorite investment option? Do you invest by setting up some goals? If not, then you might set up your goals first and then choose an investment product as this matters a lot. E.g. if you have a target to accumulate some money in next 6 month, then you should look for RD or FD, rather than Mutual Funds.

Share your views about the best investment options for beginners, your experience of starting the first investment plan and how much money you have invested. Thanks for reading. 🙂

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  1. You have covered very interesting and useful points in the blog content which surely may guide the beginners in the field of investment and choosing the best option for investing.

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