The Best Investment Decisions That Will Prove Beneficial For You In 2022

It is confusing to choose which investment vehicles can give good returns. Here, this article throws light on the ones which are the best.

There are a lot of investment options available at present which can yield attractive returns. However, you need to be patient in order to receive expected returns, as investments don't grow overnight. There are various methods of investment that can help your money grow with time, but the only criteria here is to zero down the best ones for your goal and go ahead and park your money in them. While there are multiple investment plans that can help you multiply your money, choosing the right one can be a tricky job. That's where expert opinions and experience come into the picture. Here, this article has brought forward a few investment options which can help you decide which works best for you.

The best way to select the best investment plan is to split your financial goals into three sections, namely long term, medium term and short term. By doing this, you will have a clear picture about what return you might possibly get after that specific period of time. Also, you can choose the best ones according to your risk appetite. Let's delve into this subject deeper and explain it in details for your clear understanding.

Long-Term Investment Plans:

If you want to achieve your goals over a period of 8-10 years, then these are the best plans for you. Although some might carry the volatility factor along, the returns would be much greater over a period of time. Here are some which you can choose if you want to invest for long term.

Stocks: Investment in stocks have given massive returns for many who have stayed invested for a long time. If you want to create wealth and are not in a hurry to double your investments within a short time, then equity is the best option. However, it is strongly recommended to do a thorough research before investing in stocks.

Mutual Funds : Mutual Fund Investment reduces the risk of losing your money as in stocks, as they diversify your investments across multiple stocks. Furthermore, professional fund managers run these funds, which lowers the risk owing to their experience in putting in money where it works the best. Investing in Mutual Funds is perhaps one of the best options to grow your money, though there are risks involved here too like stocks, but the intensity is much lower.

Gold : One of the most popular investment options in India, which can be bought even via Mutual Funds and ETFs now. However, you should keep in mind that gold has never surpassed equities when it comes to returns of investment.

Medium-Term Investment Plans

If you are planning to invest for less than 5 years, then these plans are best for you. Here are some investment options that can fulfill your medium-term financial goals.

Fixed deposits : FDs can have a maturity period of 3-5 years and offer guaranteed returns. It is one of the safest investment options but has a lock-in period.

Debt Funds : There are many debt mutual funds that give medium term returns. You have to choose the right ones that best fits your medium term investment goals.

Short-Term Investment Plans

Short Term investment plans are aimed to minimize the risk to the capital invested, and additionally the funds need to be easily accessible. Here are some options you can choose for short term investments.

Bank Fixed Deposits : FDs are well suited for short-term investments as well. One of the most preferred investment options in India as it provides guaranteed returns of investment. However, you should note that fixed deposits carry a load of limitations like there are premature withdrawal charges and penalty is also levied if you withdraw your investment before the maturity date. Also, the post tax returns from bank fixed deposits can fail to beat inflation.

Short term debt funds : There are various debt funds which are designed to give returns in a short term like Liquid Funds, Ultra-Short Duration Funds, and Money Market Funds in which you can invest if you want to park your money for a limited period.