10 Best Investment Options for Salaried Employees in 2022!

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Investment is one of the things that we all wish to do, but where to invest is one of the biggest concerns. As there are so many investment options out there one is deemed to get confused but here given below are the top 10 investment options. Especially this article for a salaried person who earns a fixed sum of income every month. But you need to understand that before you invest your money anywhere please research properly, as this article just provides you with investment suggestions and is not responsible for any investment decisions. And one of the other points to remember is that you diversify your investment rather than investing in one or two instruments to reduce risk and increase the chances of your profit.
Top 10 investment options –
1. Direct equity (stocks) – Direct equity can be one of the best investment options for anyone. There are many advantages of investing in stocks such as a wide variety of options, one can start with small amounts such as penny stocks, high liquidity, and also you the high returns are always attractive. But with such advantages, there are many other disadvantages, such as high risk, and scams such as pump and dump stocks. But with all such risks also an equity investment is worth it, as they usually provide great returns. But usually, equity investment requires a lot

2. SIP in Mutual funds – Mutual funds are also a great investment option. A mutual fund is a fund where different investors’ money is pooled together and then invested in equity, debt, and hybrid funds by professionals known as fund managers. Some of the advantages of a mutual fund are low risk, can start with as low as 100, and money is invested by professionals. Also, there are some disadvantages such as average returns. But mutual funds don’t require much expertise, and low research is required. And SIP is a systematic investment plan, under this, a fixed sum is automatically invested in a mutual fund. And this is great for salaried persons.

3. ELSS – ELSS or equity-linked savings scheme is also a type of mutual fund, but these funds invest around 60% of their funds in equity. Some of the advantages include tax exemption up to 1.5 lacs, low risk, and money invested by professionals. Also, there are some disadvantages such as a 3-year lock-in period, and no option to withdraw funds prematurely. The main advantage is the tax benefit under section 80C which provides you an exemption of up to 1.5 lacs.

4. Employee provident fund – EPF or employee provident fund is also one of the widespread investment options. This scheme is usually offered to employees by their employer, it’s exclusively designed as a retirement plan. A contribution of 12 percent is made from employers and employees, and the added advantage is one can claim tax exemption for the amount they contribute to EPF. Also, interest income from EPF is exempted from tax. EPF is one of the must investment options for a salaried person.

5. Gold investment – Buying gold can be a good investment and as Indians, we have been taught to buy gold on every occasion. But physical gold isn’t a good investment option, as there are issues with storage. But there are other options available such as Gold ETF, Equity-based gold funds, etc. Gold investment is low risk and provides one with inflation-beating returns.

6. Real estate – Real estate can be a very good investment, the growth rate is high and also provides passive income in the form of rent. But there are also some disadvantages such as low liquidity, high cost, etc. But If you don’t have money to invest in real estate directly you can invest in REIT or real estate investment trust, these are similar to mutual funds but the money is invested in real estate projects. One can start with low amounts and get good returns.

7. ULIP – Unit linked insurance plan is a dual advantage investment option, under this, you get the advantage of both insurances as well as an investment. The premium you pay is used to build insurance coverage and then invested for your future growth plans, the fact that it requires very less effort makes it a good investment option.

8. NPS – It is an investment scheme that was earlier introduced for government employees and later extended to all. This is similar to EPF and you get a retirement benefit such as a pension and a lump sum amount. Also, the money through NPS is tax exempted is even better, it provides average returns and can be a good option for salaried persons.

9. IPO investment – IPO investment is also similar to equity investment, but under this stocks of companies that are getting listed are bought. This can be a profitable investment if you choose the right company as shares tend to surge in price after IPO and one can earn handsome profit in a short time, but it requires quite a bit of research.

10. Cryptocurrency/NFT – It is one of the buzzing investment options right now, one can surely invest in them. Cryptocurrencies are volatile and one can earn good profit by trading in them, but it is associated with high risk and there are many stories where people have lost their capital. NFT is a form of digital art, and one can buy but the price of NFT is dependent on what someone is paying for them, so it wouldn’t be a good idea to invest a major sum of your in NFT and Cryptocurrency, but if your looking to diversify they may be a good option.
Conclusion – Here are some of the investment options, in which you can invest, especially if you’re a salaried person. One can start with small amounts and no huge investment is required so they are just ideal for you, but make sure you diversify your investment and take a calculated risk, also research before investing anywhere to protect your hard earned money.

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