Investing in the right savings instruments is a good option to generate returns. However, it needs proper investment planning and picking the right savings instruments. One of the most important aspects in investment planning is the income group one falls into as it determines the amount of money they can invest.

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Therefore, we're here to help you with some of the best investment options in India based on your income.

Investment Options For Low Income Group

Individuals who fall in the low income group (income of up to Rs. 5 lakhs per annum) can consider the following investment options.

1.   Recurring Deposits (FDs): This investment option allows one to save a specific amount each month and this makes it one of the best options to consider during investment planning. They offer better interest rates than savings accounts.

2.   Savings Account: You can keep saving small amounts to enjoy liquidity and interest benefits along with safety of investment. The interest rate is a little lower than RDs but provides liquidity.

3.   Public Provident Fund (PPF): PPF is a long-term investment option with tax benefits. Therefore, one can start with a small contribution and it grows over time. You can also enjoy tax benefits. Moreover, it is risk-free as it's backed by the government and also provides attractive returns.

Investment Options For Middle Income Group

People who fall into the middle income group (income of Rs. 5 - 10 lakhs) can consider the following investment options.

1.   Fixed Deposits (FDs): Investing in FDs offer generous returns along with security of investment as the risk of losing your funds is almost zero. However, one cannot withdraw the money deposited until the FD matures and if they do they'll lose the interest earned.

2.   Mutual Funds: With a higher income than the low income group, one can consider riskier investments as well and mutual funds could be a great option due to the attractive returns they offer. In addition, they help in diversification of portfolio and aid in risk management if proper investment planning is followed.

3.   Sovereign Gold Bonds (SGPs): Investing in SGPs is the same as buying gold, however, it's in paper form. These bonds offer a significant amount of interest and are risk-free as the government backs them. Moreover, the capital appreciation linked to gold prices would be considered as well.

Investment Options For High Income Group

Investment planning becomes crucial for individuals in the high income group (income of more than Rs. 10 lakhs per annum) as devising a proper strategy is needed. Therefore, the following options can be considered.

1.   Stock Market: High income group individuals can invest in the stock market after careful analysis to generate returns beyond limits. However, this option comes with a high level of risk as well.

2.   Real Estate: These individuals can consider buying property or real estate funds to benefit from both rental income and capital appreciation.

Investment Options For Ultra-high Income Group

People with an income of over Rs 50 lakhs can consider the following investment options.

1.   Private Equity and Startups: Investors may consider investing in private equity or startups that offer high returns, but there could be high risk also. To start with you can invest in shares of some of the reputed companies. 

2.   International Investments: People can diversify their investment portfolio by putting their money in foreign bonds, stocks or debentures.

No matter what income group you fall in or what options you choose, the ultimate result would depend on your investment planning activities. Therefore, devise an efficient strategy before making an investment.