We all have spent our fair share of time scrolling through gold rate today in Jamshedpur and other states. But did you know investment in gold is considered an alternative investment? Curious? Well, alternative investments describe an investment strategy that has the potential to provide higher returns than the stock or bond markets, or traditional savings accounts. An alternative investment is a financial product or security that is not traditionally available in order to achieve greater returns, such as a stock market index fund. Confused about which investment options can be considered as alternatives and which alternative investmetns are actually good? Don’t worry we’ll answer all these questions. here is we list of some of the best alternative investments:
- Real Estate
Real estate is probably one of the best investment options in India. It offers a steady income and has been a boon for many people. It is also an asset that can be sold off at any time if you want to get out of it. The real estate market has been on the rise since last year and it is expected to continue doing so in the future as well.
The real estate sector includes residential, commercial, industrial and retail spaces. Real estate developers are also investing heavily in infrastructure development and building new residential homes in cities like Mumbai, Pune and Delhi to name a few.
- National Pension Scheme (NPS)
The National Pension Scheme (NPS) is another good option for investors looking for an alternative investment option in India. It offers a reliable monthly income with no long-term risks attached to it. The NPS allows you to invest part of your retirement savings into mutual funds or equity shares that offer good returns on your money over time. The scheme offers an opportunity for individuals to invest in an annuity plan and earn interest on their investments over a period of time.
Gold is a good investment option to make money, as it is a metal that not only has intrinsic value but also has a high demand in the market. In India, gold prices have been on an upward trend in the recent past and this trend can be expected to continue in the coming years as well. You can confirm this by tracking the gold rate today in Chandrapur or wherever you live for a fixed period of time and a line graph of the price. Click here to learn more. Gold investments are tax-free and do not require any paperwork, which means you can invest with just a few clicks on your phone or computer screen.
- Recurring deposit account
An RRD is another alternative investment option that offers returns that are mostly tax-free and does not require any paperwork from you or your employer. You can open an RRD account online from your bank account or any other financial institution offering it. The interest rate offered by these accounts varies from bank to bank and it is usually higher than what you would get with an SBI savings account or post office savings account (PSS).
- Public provident fund
A public provident fund (PPF) is the most popular investment option for a large section of Indian citizens. It is a government-sponsored social security scheme that offers certain tax benefits to people who invest in this scheme. This is also one of the best alternatives to bank deposits as you get higher interest rates on your money. The interest earned by PPF depends on how long you have invested, but it can be as high as 8% per annum.