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ELSS Funds – Explore The Best Investment Options of 2019

Check our curated list of best ELSS funds and also explore other best investment options of 2019.

If you are looking for the best investment options of 2019 you are reading the right article! We will present you carefully selected ways based on your risk profile. We will also show explain why investing in ELSS Funds can be one of the best decision you make in 2019.

Most people want to invest money in such a way that they get very high returns in short-time with the lowest risk and without losing the amount you they have invested in. If that was possible then most of us won’t be doing jobs and everyone will be doing investments only! Let us explore best investment options of 2019.

ELSS Funds – Tax Saving Mutual Fund

ELSS Funds - Explore The Best Investment Options of 2019
Image Source: 5thvoice.news

Risk Profile: Moderately High

If you are a salaried person, you have to deal with taxes and you’re also worried about growing your wealth with time. In a young age, you are also taking some risks and exploring other ways which pay a higher return compared to other options. You should start looking for top ELSS mutual funds.

According to ClearTax website, Axis Long Term Equity Fund (Growth) is one of the best ELSS Funds to invest your money with an average return of 19.28% per year. According to our research, Aditya Birla Sun Life Tax Relief 96 Growth is also one of the Best Performing ELSS Funds with average 19.9% return per year over the span of 5 years.

Pros:

  • Higher returns compared to other 80C investments.
  • Tax deduction of upto Rs 1.5lac
  • Option to invest Monthly via SIP

Cons:

  • 3 year lock-in period (Shortest compared to other tax-saving options.
  • Based on the performance of equity.
  • Exposed to stock market movements.

 

Best Investment Options of 2019

Recurring Fixed Deposits

Image Source: Karvy Online

 

Risk Profile: Safest Investment

Apart from ELSS Funds, Fixed Deposits are the best investment plan with guaranteed returns. Although they may offer lower returns compared to other risky options, they are one of the best investment options in India. The USP of Fixed Deposits is guaranteed returns.

You won’t believe many times in the history, Fixed Deposits have outperformed other high return investment plan. Many poorly ranked and poor performing Mutual Funds have given a return of 0.10% to 3.60% last year compared to 6.40% given by most banks.

Pros:

  • Safest Investment
  • Guaranteed Return
  • Higher return compared Gold and other few options.

Cons

  • Lower returns compared to other risky options.

Suitable for: You should choose to invest in Fixed Deposits if you have huge sums of money and you are looking for a guaranteed fixed amount of return over a period of time.

Public Provident Fund

Risk Profile: Lowest risk, higher returns

Public Provident Fund Scheme was started by the National Savings Organization in 1968 to promote small savings and investments. They are one of the best investment plans for the long term. The best part of PPF is their return is decided by the entity of central government and they have given the return of 7.5%+ in most years.

These funds have a very long lock-in period of 15 years, but they offer a lot of tax saving benefits. They offer tax-free compounding interest is huge, especially in the later years. This scheme is fully guaranteed by the Central Government and it makes it a very safe investment option. The current interest rate in PPF is 8.0% per year.

Pros:

  • Multiple tax benefits.
  • Average 8% return per year.
  • Minimum investment of Rs. 500.

Cons:

  • Maximum deposit limit.
  • 15 year lock-in period.

Equity Mutual Funds

Source: Kotak Bank

Risk Profile: High

Equity mutual funds mostly invest in stock markets. As per current SEBI’s Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65 percent in equities and related instruments. Mutual Funds are for people who want an overall higher return but want to invest more safely into the stock market.

Mutual Funds are also considered a good option for long-term investments. The investor must ensure that Mutual Fund they are willing to invest in, is having very good CRISIL Rank and high average annual return of the span of 5 years. You should deeply look into the portfolio of the Mutual Fund before investing.

Pros:

  • Higher returns.
  •  Great option for 5-year investment plan.

Cons:

  • Hard to find a mutual fund with the right investment basket.
  • Higher risk.
  • Exposed to stock market movements.

Equity Stocks

Image Source: Early to Rise

Risk Profile: High

Stock Markets are best high return investment plans but also the riskiest investment options. If you are well-experienced and have an in-depth understanding of stock market movement then swing trading in the stock market can give you up to 60% return in a year.

Nobody really knows that how stock markets will perform tomorrow. Deciding where to invest, which stock to choose is a constant challenge for even the most experienced investor. Learning, doing in-depth research and demo trading can help to get a good grip in this domain.

Pros:

  • Very high returns.

Cons:

  • Need to learn advanced technical analysis.
  • Fundamental analysis should be strong.
  • Higher risk

What you should do before investing

Remember to do your own detailed research before you invest your hard earned money. Higher research will ensure that you are taking more responsible decisions. Ideally, you should diversify your investments among fixed-income and market-linked investments options. Both have a role in the process of wealth creation. Initially, you can consider, ELSS Funds and Public Provident Funds.

Note: Investments are subject to market risks. Please consult a professional investment adviser or wealth management consultant and do your own research before taking any decisions. It is your hard earned money to decisions and responsibility of results must be yours only.

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