Top 5 Most Preferred Investment Option in India

Do you know what are the most preferred investment option where majority of Indians are investing? What are the best investment options in India where people love to invest regularly?

I was reading ET Wealth weekly magazine and discovered an interesting survey where they have listed down – what are your preferred investment options? And the data is really amazing as direct stock market investment has not been able to make a place in this list. I will analyse the data and discuss about why people generally choose these investment options over other products.

Most Preferred Investment Option

The below graph with the percentage of different investment options will help you to understand the best investment options in India & people’s interest level in various segments.
best investment options in India
As per the data,
1. Life Insurance Popularity/Why Life insurance so popular?

So, data is clearly saying why insurance products are so much popular in our country. This also indicates that people are hardly aware about the actual importance of insurance, rather making it as an investment option.

This is also true because majority of investors from our country are looking for secure & guaranteed return from investment, irrespective of how much yield they will get every day.

I am getting many comments everyday asking for which insurance policy is better, whether the 5-6% return is guaranteed or not. As people are only looking for guaranteed return.

I doubt, whether this data will be same in coming years as people are getting educated by many online sources, blogs on why one shouldn’t buy a life insurance policy to get return.

2. Bank FDs are the Best Way to Start Investing

Bank FDs are very popular investing option for many people, as one can buy such products in various duration. This also gives huge flexibility to an investor.

As a beginner in investment, it is always advised to start with a recurring deposit or FD. With this, one can learn the habit of investment and also whenever it is required, break the deposit and utilize the money for any short term goal.

3. People know the Power of PPF & Compounding

Investing in PPF is a very good practice. And almost every financial planner advises to invest a part of your surplus money in such products for long term basis.

PPF can give a very good return in long term if one can invest regularly. And it is totally a tax free income.

The 14% data is a good indication and I believe it will go up in coming years.

4. Increasing Popularity of Mutual Funds in India

I was reading in couple of sources that in last 1-2 years the market of mutual fund investment is getting larger & larger day by day. This is also true as stock market is touching a new high in every few weeks.

Anyway, it is proved that investing in stock market via mutual fund for a longer term is always benefiicial and it provides a healthy return. In fact sometimes more than 14%, which is best among all products.

I am sure that the data of 9% will change drastically in coming years and it will go upward only.

5. Investing in Gold in India is a Traditional Habit

Now one cannot stop people buying gold whether for investment or other use. People will buy gold whatever the situation is. In fact many experts are not recommending gold as a primary investment these days, but still one should keep a percentage of Gold as investment in their portfolio. But be careful, if you think you have invested in gold by gifting a jewelry to your wife, then actually you are wrong. Read how one can invest in Gold.

So, if we add all these investment options data it will be total 73% only.So what are the other 27% investment options where people are preferring to invest? There are many more preferred investment option in market. But if one research a bit carefully among these 5 investment options and allocate fund as per requirement, I think he/she will be able to do their own personal finance planning.

What is your preferred investment option among them? Share your query or feedback by writing a simple comment.

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About the Author: Santanu

I'm Santanu, co-founder of mydailylifetips.com. Love to read & write about Life hacks, How to guides, Money Saving tips and travel stories on this space. Checkout my first Hindi YouTube Channel on Personal Finance Guide.

6 Comments

  1. Good morning sir I have applied for Hdfc click 2 protect plus as u have guided but first they asked me to pay premium of rs.6200 now after my medical test due to my HB count was less now they r asking me to pay 15000 .so I have decided to cancel that plan pl pl suggest me what I should do now

    1. Hi Anitha,

      I think this is very normal in case of insurance. And I am sure even if you go to other company they will also charge you a higher premium.
      What I will suggest you is take care of your health first and try whether you can get back to normal.
      Then approach for a life insurance. Whatever premiums most companies are quoting, that is for a 100% fit person. In case any sort of health issue they will definitely charge more premium.
      I hope this is helpful. And also let me know how did you progress in this case. 🙂

  2. Self prefer and doing my investments in the following way
    1.Real Estate
    2.PPF
    3.Gold
    4.MF
    5.FD
    Thanks,
    Srinivas

    1. Real Estate is the best investment option, if you are lucky. I have seen many people are smartly doing real estate buying & selling on perfect occasions and making good return.

    1. Thanks for finding it useful. Most people preferred to go with a safe & guaranteed investment options in our country. But people should do a research before investing.

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