This investment planner quiz will ask you few questions and based on your answers it will guide you on what is the best investment plan in 2022, in other words it answers all questions like how to investment, where to invest, what are the best investment avenues in 2022. And this will be customized based on your answers so answers carefully.
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What is the best investment plan ?
while choosing the right asset to invest, one should keep in mind following factors.
1) Age factor:
This is the very first thing that should come into the mind because it narrows down thrle search. people who are of young age say between 18 to 23, can consider for investing im long term because of they can get the benifit of high returns from risky assets like equity, real estate, growth funds etc. because in long run(10 to 20 years), equity returns provide significantly high returns. While people who are in their 40s, or 50s, don’t have this advantage because they can not invest for long periods.
2) Debt factors:
If a person has financial obligations then that person cannot go for long term risky assets. Such person may go for fixed income securities which are relatively safer like Bonds, Fixed deposits, recurring deposits etc.
1. Direct equity
Investing in stocks might not be everyone’s cup of tea as it’s a volatile asset class and there is no guarantee of returns. Further, not only is it difficult to pick the right stock, timing your entry and exit is also not easy. The only silver lining is that over long periods, equity has been able to deliver higher than inflation-adjusted returns compared to all other asset classes.
At the same time, the risk of losing a considerable portion or even all of your capital is high unless one opts for stop-loss method to curtail losses. In stop-loss, one places an advance order to sell a stock at a specific price. To reduce the risk to certain extent, you could diversify across sectors and market capitalisations. To directly invest in equity, one needs to open a demat account.
Banks also allow opening of a 3-in-1 account. Here’s how you can open one to invest in shares.
2. Equity mutual funds
Equity mutual fund schemes predominantly invest in equity stocks. As per current the Securities and Exchange Board of India (Sebi) Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65 percent of its assets in equity and equity-related instruments. An equity fund can be actively managed or passively managed.
In an actively traded fund, the returns are largely dependent on a fund manager’s ability to generate returns. Index funds and exchange-traded fund (ETFs) are passively managed, and these track the underlying index. Equity schemes are categorised according to market-capitalisation or the sectors in which they invest. They are also categorised by whether they are domestic (investing in stocks of only Indian companies) or international (investing in stocks of overseas companies). Read more about equity mutual funds.
3. Debt mutual funds
Debt mutual fund schemes are suitable for investors who want steady returns. They are less volatile and, hence, considered less risky compared to equity funds. Debt mutual funds primarily invest in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial paper and other money market instruments.
However, these mutual funds are not risk free. They carry risks such as interest rate risk and credit risk. Therefore, investors should study the related risks before investing. Read more about debt mutual funds.
4. National Pension System
The National Pension System (NPS) is a long term retirement – focused investment product managed by the Pension Fund Regulatory and Development Authority (PFRDA). The minimum annual (April-March) contribution for an NPS Tier-1 account to remain active has been reduced from Rs 6,000 to Rs 1,000. It is a mix of equity, fixed deposits, corporate bonds, liquid funds and government funds, among others. Based on your risk appetite, you can decide how much of your money can be invested in equities through NPS. Read more about NPS.
5. Public Provident Fund (PPF)
Since PPF has a long tenure of 15 years, the impact of compounding of tax-free interest is huge, especially in the later years. Further, since the interest earned and the principal invested is backed by sovereign guarantee, it makes it a safe investment. Remember, interest rate on PPF is reviewed every quarter by the government. Read more about the
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