Know top 5 smart investment options in this new fiscal year!

When it comes to finding good investment plans that guarantee better returns and tax saving opportunities, you tend to get confused as there are a lot of investment schemes available. Different investment plans come with different conditions and benefits. Some people invest because they need financial security, whereas others invest to achieve their investment goals. The investment options you should choose should depend on your risk appetite, investment horizon, financial goals, and liquidity needs. smart investors are always on a lookout for the best investment options.

By investing in the best investment options, you can not only achieve your financial goals but can also create a financial cushion for the future to live a secure life. Here are some of the smart investment options available today:-

Mutual funds

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Mutual funds are one of the most sought-after investment options available in the market today. There are types of mutual funds. As name suggests, equity mutual funds invest in stocks. They have the potential to offer inflation-beating returns over a long period. The point to note is that with high rewards come high risks as well. You must invest in equity funds to achieve your investment objectives only if it matches your risk tolerance.

There are also people who are bit conservative when it comes to equity exposure, so debt oriented mutual funds are a solution to them. While it reduces volatility chances, still the investor can be assured of decent returns over other traditional investment instruments.

National Pension System

The National Pension System or NPS is a government-backed retirement cum pension scheme. With the sovereign guarantee backing the scheme, you get the much-needed safety for your investment. This scheme provides a monthly pension when you retire as you have to compulsorily invest 40 percent of the corpus accumulated at 60 years in an annuity plan.

Also, investing in the NPS entitles you for additional tax benefits up to Rs 50,000 per annum under Section 80CCD(1B) of the I-T Act. This deduction is over and above the regular tax deductions available under Section 80C, Section 80CCC and Section 80CCD where you can save up to Rs 1.5 lakh a year in taxes.

Public provident fund

If you are a risk-averse investor, then the public provident fund (PPF) is the suitable investment option for you. PPF is one of the most popular tax-saving investment options for the common man. You can open this account in a bank or even at a post office. PPF comes with a lock-in period of 15 years, with an option of extending your account in a block of five years.

Real estate investment

Real estate is a good investment option for those who have sizable disposable income. It is an excellent option for long-term investment. The Real Estate Regulation and Development Act (RERA), which came into force in 2016, has further boosted the real estate market in India. The industry is well regulated with safety measures in place for buyers and sellers.

With fast-paced development and urbanisation, the demand for real estate has witnessed a rise like never before. The availability of accessible home loans at lower interest rates has removed the barriers to affordability. It also allows buyers to save a significant amount of income tax annually until the payment of the home loan.

Stock market investment

You may invest in stocks to achieve investment objectives only if it matches your risk appetite. It helps if you select the right stocks to maximize your returns over time. For instance, you could select stocks of companies that enjoy an economic moat. It is a competitive advantage a company enjoys over its competitors and peers which may translate into a higher market share.

You must diversify your stock portfolio by investing in stocks across sectors and different industries. It helps if you invest in stocks through the systematic investment plan or SIP. It is a method where you invest fixed amounts regularly in the stocks of your choice.