10 Alternative Investment Options If You Don't Wish To Invest In Just Bank FDs

In India, there are several?alternatives to traditional bank fixed deposits (FDs)?that individuals can consider for?investing?their money. From mutual funds, VPF, and gold to real estate, here are some popular options you can consider:

10 Alternative Investment Options

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1.Mutual Funds:

Equity Mutual Funds: These funds invest in stocks and have the potential for higher returns, but they also come with higher risk.

Debt Mutual Funds: These funds invest in fixed-income securities like government and corporate bonds, offering relatively lower risk compared to equity funds.

2. Public Provident Fund (PPF):

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PPF is a long-term savings scheme with a lock-in period of 15 years. It offers tax benefits and a fixed interest rate.

3.National Pension System (NPS):

NPS is a voluntary, long-term retirement savings scheme designed to enable systematic savings. It offers a mix of equity, fixed deposits, liquid funds, and government funds.

4.Senior Citizens Savings Scheme (SCSS):

SCSS is a government-backed savings scheme for senior citizens that offers regular interest payouts.

5.Post Office Monthly Income Scheme (POMIS):

POMIS is a low-risk savings option offered by India Post, providing a fixed monthly income.

6.Real Estate:

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Investing in real estate, either by purchasing property or through Real Estate Investment Trusts (REITs), can be an alternative for long-term wealth creation.

7.Corporate Fixed Deposits:

These are similar to bank FDs but offered by non-banking financial companies (NBFCs) and corporations. Investors should carefully assess the credit rating and risk associated with these deposits.

8.Sukanya Samriddhi Yojana (SSY):

This is a government-backed scheme for the benefit of the girl child. It provides a higher interest rate and tax benefits.

9. Gold:

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Gold can be purchased in various forms, including physical gold, gold ETFs, and sovereign gold bonds, providing a hedge against inflation.

Also Read;?Explained: Why?Gold?Rates Differ Across States In India?

10.Voluntary Provident Fund (VPF):

This is an extension of EPF where employees can contribute more than the mandatory limit.??

Discalimer: Before opting for any investment, it's crucial to consider factors such as risk tolerance, financial goals, and investment horizon. Additionally, it's advisable to consult with a financial advisor for personalised advice based on your individual circumstances.

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