Best Investment options in India

by Manikaran Singal on August 29, 2012 Total Views: (700)


Asking best investment options in India has become a very common these days. Every second day I receive such kind of queries asking for best Investment options for child future planning, best investment option for retirement savings and how to do efficient personal financial planning. So I decided to write a complete post on it. I’ll be covering best investment options in India that can be used to generate decent Retirement corpus and do best personal financial planning.


Manikaran Singal

Founder and Chief Financial Planner at Good Moneying Financial Solutions
He’s MBA ( Finance) gold medalist, a CERTIFIED FINANCIAL PLANNER and SEBI Registered Investment adviser. An ex banker , having a decade long experience in financial services industry he manages clients across the globe. He’s an active member of Financial Planners’ Guild India ( An association of practicing SEBI registered Investment advisers). He's very passionate in the financial planning space and with a view to spread financial literacy among masses he writes blog articles and also contributes and quoted in various media publications like Money control, Indian express, Business Bhaskar, Dainik Bhaskar, Money mantra magazine etc. He also delivers training on Various personal finance topics to various corporate houses. You may get in touch with him at info@goodmoneying.com

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{ 11 comments… read them below or add one }

sameer shah August 30, 2012 at 3:13 pm

hi Manikaran,

Good insightful article !!!.

Its ben said that world economic powers dont really like PPF ( or rather the benefits) …i read an article saying tht if India wants international recognition as a economic superpower, then one fine day PPF proceeds will cease to be tax free.
Any Idea about this?? i am interested to know your opinion….

Reply

Manikaran Singal September 4, 2012 at 6:03 am

Hi Sameer!! Well, i have not heard anything like that. But it has to happen, someday government has to withdraw the tax benefit out of such instruments to reduce the burden on fiscal deficit and use the tax proceeds for the economic development of nation which is the main job of the government. Even the first draft of DTC was talking about to make PPF taxable on maturity , but later on it was put into deep freeze. Actually everything is inter related there’s no social security that’s why are these tax free intruments, there’s lot of corruption and tax evasion that’s why very high fiscal deficit. Huge Red tapism leads to delay in the process and thus slow growth rate…and so on. But on the other side i strongly beleive that india is bound to grow. In the words of Rakesh Jhunjhunwala . ” Reforms has to happen…either through consensus or through crises” and once everything’s in order these PPF like instruments will be out of scene.

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DJ September 23, 2012 at 9:15 am

Hi Manikaran, please explain what you mean by “PPF like instruments will be out of scene”? Does that mean out of fashion OR taxable at maturity?

Reply

Manikaran Singal September 27, 2012 at 3:56 pm

HI DJ…i meant both. The major attraction in PPF is its tax free nature of returns and maturity..and if it becomes taxabale it will lose its shine.

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Jeevan August 31, 2012 at 9:48 am

nice artical manikaran. You have rightly pointed out that EPF is the most igonored investment option. In actual it is such a strong savings tool which will never let you down during retirement years. My father has got my sister married, built our house through the EPF savings only.

Reply

Manikaran Singal September 4, 2012 at 6:08 am

Yes its true. Actually its all a game of need and desire. Today’s generation has lot many desires which they call as need and thus are in a habit of changing jobs frequently, not in a habit of saving, are very impatient thus keeps on withdrawing the savings very soon etc. This will go against there long term growth. Our parents while in job was very disciplened in the expenditure and this helped the in achieveing all there goals comfortably.

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Sambhav August 31, 2012 at 9:51 am

I want to invest for my retirement, which option as per you is suitable as per you PPF or Mutual funds.

Reply

Manikaran Singal September 4, 2012 at 6:13 am

Sambhav, both are good instruments for long term savings bbut nature of both these are different. Where PPF is debt instrument and provides a fix return there Mutual funds is vehicle which helps you chose different asset class for investment and there returns are not guaranteed and fixed, but if chosen wisely it will surely help you generate long term wealth. So better zero on to your risk profile, time horizon , goal amount and then decide on the asset allocation

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suresh September 26, 2012 at 8:41 am

I feel investments like fixed deposits / recurring deposits also works out for short term. But investments in equity and Gold are the best bet for long term….. Enjoy your day….

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sandip February 27, 2013 at 10:57 pm

hi,

can anybody suggest that if i want to start investment in gold then should i go for gold or gold ETFs
or can i take this option as extra income?
please suggest, i can spend only a small amount cz of financial constraints.

thks,
sandip

Reply

Manikaran Singal March 1, 2013 at 3:09 pm

Sandip, if the goal is only investment and you have no passion for gold accumulation, than surely gold ETF will suit you.

Reply

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