Most individuals look for an opportunity to invest, to increase wealth. Among the attractive investment options available to individuals, Bank Deposits come very low with fixed and rather poor returns. Next in line comes investment in the share market either directly or through mutual funds, which require commitments over a long period. When opting for any investment, two things stand out, the long gestation period for investments to give good returns as well as the risk involved in trying to get maximum returns. We will in this context, examine some options for optimum investment returns in 2019.

  • ULIPULIPs are completely tax free investments under Sec 10 (10D). These offer not only equity funds but also debt and liquid fund options to investors. Opting for ULIP investment plans can give you a distinctive advantage over investing in mutual funds.
  • Peer-to-peer lending (P2P) is fast becoming one of the most lucrative investment options in India. This lending platform can be a source of fixed,stable and assured income. Some agencies facilitate this process, with some features such as stable lending, lucrative but fixed returns irrespective of market fluctuation attract higher interest rates; on an average, a return of 16 to 18% is available but then, the return can be higher based on the risk appetite of the investor.
  • Mutual Funds (ELSS) Equity Linked Savings Scheme is turning out to be one of the most lucrative investment options now. This mutual fund plan is associated with lower risk and has a shorter tenure than most similar schemes. Tax saving available under section 80C and an average ELSS scheme can provide a healthy 18% return p.a.
  • Public Provident Fund (PPF)is a more traditional investment option that allows the investor to put in small or big amounts as he is able to spare and get tax free returns.
  • Equity Shares is an option for those looking for quick returns by speculation. Those who are lucky to get quick and easy profits may not last long as they do not have the patience to see their investments through.
  • Company Fixed Deposits are unsecured loans, so, the protection offered is minimal though a steady and fixed amount is made available when the going is good.
  • National Pension Scheme (NPS) is an investment option available to anyone between 18 and 60 years of age.
  • Investment in gold and other commodities makes use of the fact that gold has traditionally been one of the safest avenues for investment for most Indians. The commodity market is also vibrant now with the commodities exchanges offering attractive schemes to invest in convenient manner without even taking possession of the stock investors trade in.
  • With the Interim budget 2019, enhancing the exemption limit on interest on bank deposits for senior citizens, Senior Citizen Bank deposits make sense as the returns are generally tax free.

Some of these schemes as above are among the most commonly used for investing funds for a better return. However, ULIP plans which blend in the best of investment and insurance make for a unique option in the field of long term investments. With benefits like allowed partial withdrawal, exempt for tax, flexibility and transparency, there’s not a reason to bar you from opting for this!

By Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to [email protected].