An investor may select one or a combination of the best investment options which appeals to him or her. The selection of the investment options also depend on the age, income, dependents, etc of a particular person, you can read more about this in asset allocation strategies.

Investment carries some amount of risk. No risk leads to no or low returns! Bonds issued by Central or State government. These bonds are termed as the safest investment instruments in India. These securities carry least amount of credit risk as they are backed by the Government of India. Investing in direct equity. Investing in direct equity is termed risky and one needs to diversify the risk by investing in multiple securities from various sectors.

Mutual fund is a financial instrument created with pool of investments from many investors. Mutual funds are professionally managed and they invest in equity, debt, gold, foreign equity, etc. In India investing in real estate is considered as the best form of investment but only after gold.

Historically real estate has performed well in India. Investing in metros has become very expensive so it is advisable to invest in outskirts. For example Vashi, Vasai, Bhiwandi around Mumbai.

Top 10 Investment Options in India

Gold is considered as the best investment in India, that is the only reason why India is the highest consumer of gold in the world. Most of the people in India buy physical gold. This considered as one of the traditional ways of Investing.

Different types of investment avenues available in India

Most of the people in India with a bank account will have at least one fixed deposit. Post office savings schemes: These saving schemes by post offices are trusted by many Indians. The scheme attracts decent returns.

One can start investing with as low as Rs per month. Check out the details here.

The National Pension System NPS is a defined contribution based pension system launched by Government of India. This instrument is used for retirement planning by many. One can find more details here.

This is one of the latest passion for investors, trading in MCX to offset the risk of their equity portfolio. Many headers and arbitrageurs use this financial instrument.

10 Best Long Term Investment Options in India

Art as a form of investment is quite common in developed nations and the trend is picking up in India. Many affluent Indians buy art preserve it and diversify their portfolios! Investing in someones business idea at an early stage of the venture.

You get equity for the amount invested and one can exit the investment when the business is acquired by some other company or when the company gets listed. These investments are highly il-liquid and carry huge risk. We tried to cover most of the assets where an Indian investor can invest their money. Did we forget to mention any instrument?

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