Top 15 Investment Plans

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"If you don't find a way to make money while you sleep, you will work until you die". -Warren Buffet

Most recognised name in investment and third richest person in world Warren Buffet has started investing at the age of 13 years but still he realised that he was late. You can understand the power of investing at early age when world's third richest person regret for being late even when he started investing at the age when one don't know about investment. Now question arise at what age we should start investing and answer is very simple as early as possible. You will achieve your financial goal as early as you will start investing. Make investment as your routine job as like as other daily habits. Now people are little bit confused with investment options. We are having so many investment options and while deciding the best one for you just be smart. Being an smart investor we should keep in mind the four basic factors Safety, Return, Liquidity and Tax advantage before choosing an investment plan.Here is a list of investment plans and you can choose from as per your need.

1. Stock Market (Equity)- Stock market has always attracted investors due to attractive returns. But on other hand it bear high degree of risk due to uncertainties and fluctuations but having liquidity. It also requires skills and experience and above all patience level. If you are a high risk taker  having knowledge and experience may go for direct investing in stock market in equity shares. Usually 15% to 30% return can be generated from direct investing in equity shares in stock market. Rate of return may vary year to year and stock to stock due to market conditions.

2. Stock Market (Debt)- If you don't wish to take risk, you can go with debt instruments like debentures and bonds etc. from stock market. Such debt instruments are issued by companies to meet long term and medium term financial needs. On such debt instruments rate of return is fixed and predetermined. Normal rate of return on such debt instruments are around 7% to 10%.

3. Mutual Fund (Equity)- If you are risk taker but don't have knowledge and experience of stock market, you can go through mutual funds equity plans. You can take mutual fund equity plan from any mutual fund firm after making comparative study of previous year returns. Depend on the market and mutual fund company rate of return varies from 12% to 18%.

4. Mutual Fund (Debt)- Mutual fund debt plan is best for the investors who don't want to bear risk and having no knowledge of direct investing in stock market. Mutual fund houses are offering debt plan where a minimum return is assured. Such mutual fund houses invest your money in stock market debt instruments. You can expect a return of 7% to 10% on mutual fund debt plans.

5. Mutual Fund ( Hybrid )- Such mutual fund plans are the combination of equity fund and debt fund. Mutual fund houses offering mutual fund hybrid plans invest in both of the instruments debt and equity on proportionate basis. You can buy this plan if you want to be balanced with respect to return and risk. The normal rate of return on such plans are around 10% depends on the relationship of debt and equity in fund.

6. Saving Bank Account- It is one of the most common and traditional investment option to put your saving with any commercial bank. Saving bank investment plan bear almost no risk and also having liquidity. Saving bank investment option is also safe as compared to other investment options but has very low rate of return. Usually commercial banks in India offer 4% return on saving bank deposits.

7. Systematic Investment Plan (SIP)- There is a saying that you can't understand the power of compound until you didn't pay on compound basis.Systematic Investment Plan (SIP) also works on same theory. It is a very powerful investment plan to convert your small savings into a big investment .It is also a type of mutual fund plans where investors are offered to make investment in easy installments as per their convenience. Systematic Investment Plan (SIP) is ideal for the salaried class or those who has fixed regular income. Nowadays Systematic Investment Plan (SIP) are getting very popular amongst middle class due to flexibility. As per your risk taking capacity and expected return you can opt equity, debt or hybrid plan.

8. Equity Linked Saving Scheme (ELSS)- Equity Linked Saving Scheme (ELSS) is also a type of mutual fund plan ideal for investors seeking tax saving on their investments. Under the scheme investment can be made at any time during the year in lump sum or in installments as per convenience but can't be redeemed before a fixed time period. Such investments enjoy tax benefit u/s 80C, hence it ideal for salaried class. Usually there is a lock in period of 3 years, but still is best as compared to other tax saving plans.

9. Fixed Deposits- It is one of the most common and traditional investment and saving plan to put your deposits for a certain time period with commercial banks or post office. It is ideal investment plan for the people who has some casual income and want to invest putting safety and liquidity on priority over return. Normal rate of return on fixed deposits are around 7% to 8%.

10. Fixed Deposits (Tax Savings)- It is ideal investment plan for the people having some casual income and want to invest for long term keeping safety on topmost priority. It is also ideal for salaried class as such investments enjoy tax benefit u/s 80 C. Tax saving Fixed deposits have lock in period of 5 years to 7 years.

11. Real Estate- It is also one of the most traditional investment plan to invest in real estate. It has very attractive return opportunity but bear high degree of risk. Depends upon the place such investments enjoy a return of 12% to 20%. This investment option is not ideal for small investors.

12. Saving Certificates- It is also one of the most traditional and common investment plan to buy saving certificates from post offices and banks. Rate of return on such certificates are fixed which is around 6% to 8%. Investors in such plans bear very low degree of risk with safety of investments as it is backed by government or banks governed by Reserve bank of India.

13. Public Provident Fund(PPF)- Public Provident Fund scheme PPF) was launched in 1968 by National Saving Organisation to promote saving habits. Public Provident Fund scheme (PPF) offers decent return alongwith tax benefit u/s 80 C. It is ideal for those who wants to invest for long term putting safety of investment on topmost priority and looking for tax benefit. Rate of return on such funds is around 8% to 9%. It has a lock in period of 5 years to 7 years.

14. Forex Trading- If you are risk taker having knowledge of currency trading, forex trading can be a good short term investment plan. It offers decent return depends on market but bear high degree of risk. Return on forex trading depends on market conditions.

15. Commodity Market-  Commodity market is a market where commodities are traded to make money. It bear high degree of risk with decent return opportunities. It is ideal for risk bearer investors having knowledge and experience of commodity market.

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