Best Investment Alternatives in India: 2019

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#11. Recurring Deposit

Like a fixed deposit, RD receives a greater interest rate than a savings account.

RD let you spend any sum which can be as little as Rs. 5 per month and is the most suitable alternative for improving the way of savings.

What All We Like Prefer

  • Approx return per year = 7%
  • Years took to multiply the investment = 10.3 years

#12. Liquid Mutual Fund

The option carries the least amount of risk and is for persons who have idle money for short period of time.

The mutual fund invests your capital in the highly liquid short term means like the bank’s CD, T-bills, and financial papers usually with maturity duration of fewer than 91 days.

What All We Prefer

  • Approx return per year = 5%-6.5%
  • Years took to multiply the investment = 11 years

Concerns

  • Lesser returns when matched to FD

#13. Ultra Short Term Debt MF Plans

Unlike, liquid MF the capital is invested in bonds and other devices with maturity more than 91 days also shorter than 1 year.

Ultra ST debt MF does bear interest rate risk, are not so liquid and therefore provides you greater results.

What All We Prefer

  • Approx return per year = 7%-9%
  • Years took to multiply the investment = 8 to 10.3 years

Best Investment Plan for 3 Years

#14. Savings Account with Sweep in Facility

he sweep in option allows you to experience versatility in handling your savings and additionally hold bigger returns from a fixed deposit.

Here, any excess wealth lying in your savings account, over a specific outset level gets automatically transformed into a fixed deposit and vice versa.

What All We Prefer

  • Approx return per year = 6.5%-7.5%
  • Years took to multiply the investment = 9.6 years

#15. Short Term Debt MF

Is a great possibility for creating consistent returns with moderate risk.

The funds are secured for up to 3 years plus there is a 1% penalty for early recovery. Still, you can foresee results a bit higher than the fixed deposit in a series of 8-10%.

What All We Prefer

  • Approx return per year = 8%-10%
  • Years took to multiply the investment = 7.2 years

Concerns

  • Early Release attracts penalty.