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5 Best Financial Tools to Invest in 2020

Vipul Das

The year 2020 begins with a new potential for profitability and the analysts also predicted that the Indian shares do not see any significant drops from the present standing. This suggests that 2020 is going to be a much improved year for finances, and you can embrace this opportunity with the right resources to invest your funds.

In the 2019 mid-year update of the World Economic Situations And Prospects (WESP), has been stated that India's economy is expected to grow at 7.1 per cent for the budget year 2020. In this article, I am going to suggest the 5 best personal finance methods to invest your money in a wise and efficient way.

Invest in Gold

Gold is an excellent and conventional way to invest. You can invest in gold by purchasing gold materials or you can buy gold in the form of traded funds or bonds. Apart from this, you can also invest in numerous mutual fund schemes in the form of gold. And it is believed by the investment analysts that investment in gold could generate some higher returns in this financial year. Gold has always become a long-term capital appreciation as it does well in the worst scenario of the financial market.

Invest in Debt Mutual Funds

Investors who don't want to take any type of risk can invest in Debt Funds on which the returns are almost assured. Debt Mutual Funds is an open-ended fund policy to hold the investors in portfolio success and generate good returns. This type of investment strategy will provide you with a better yield as an option to fixed deposits.

Invest in Public Provident Fund

Government has recently declared that for the third quarter of the current economic year, the interest rate for the small savings scheme would remain the same. It is good news for small scale investors since many banks have cut their fixed-deposit rates as the Indian Reserve Bank seeks to introduce key policy changes. With a 15-year term, it is one of the best investment ways to gain returns on the savings.

Invest in ULIPS

Unit Linked Insurance Plans come with the value of tax-free termination, low-cost coverage, liquidity structuring and convenience in fund transitioning. Many companies have now reduced their allocation rates. And most of the company also refund the mortality charges at the time of maturity. With this method, investors can distribute their money based on their risk potential so that their portfolio can be balanced. This investment strategy provides premium returns and the premium can be paid monthly or annually as a lump sum.

Invest in Mid-Cap Equity Funds

It is one of the best investment tools to invest as it focuses on companies with a middle range capitalisation in the investment market. These mid-cap companies range from 100 to 250 of the classification list of SEBI. Investors will be able to prosper tremendously if these companies grow and become large-cap companies in the financial market. It is therefore recommended that you probably invest in these only if you have a high risk profile and an investment horizon of about 3-5 years.

About the Author

Vipul Das is the finance writer of Goodreturns.in and he is writing finance related articles and content from the last 1 year.

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