Best Investment Plans to invest for 2014

Best Investment Plans and Investment OptionsBest Investment Plans to invest for 2014

Happy New Year 2014 to all our readers. Are you wondering where to invest in 2014? Do you know which are best investment plans or investment options that are going to perform better in 2014. I have analyzed some of the best investment plans to invest for 2014 which are expected to perform better in this year. You should understand in detail about the features, risks involved and to whom these are best suitable before investing in such investment plans.

10 Best Investment Plans to invest for 2014

1) Investing in IPO’s : Investment in IPO’s gave more than 65% simple returns in 2013. This stands out to be my favorite investment plan for 2014 also. I personally invested in a Repco Home Finance IPO in Apr-2013 and the stock is appreciated 106% by the end of Dec-2013. I have written an article couple of months back on the IPO performance for 9 months in 2013.  I prefer to invest in good IPO’s rather than investing in all IPO’s as there are several small SME IPO’s keep coming where performance is not that good. I feel, investing in IPO is one of the best investment plans in India.

2) Investment in Pharma Funds: My second favorite top investment plan is investing in Pharma Mutual funds. These mutual funds gave 20% to 25% returns in last one year. Though these are high risk, high yield investments, investing some of your portfolio in such Pharma Funds can give good returns to your portfolio. Investing in Reliance Pharma Fund or SBI Pharma Fund would be the best bet for 2014.

3) Investment in Largecap / Diversified funds: Investing in mutual funds through SIP has always been my favorite top investment plan. There are several good large cap funds like ICICI Pru focused blue chip fund, Quantum Long term mutual fund, Franklin India Blue chip fund, Birla SL Front line equity, HDFC Top-200 mutual fund which are the best bet in the long run. Also there are good diversified funds like Reliance Equity Opps fund, UTI MNC fund, ICICI Pru Dynamic Plan etc. which one can look for investment.

4) Investment in Technology/IT sector funds: IT sector has been performing well in last 1-2 years. With rupee value depreciating and US economy growing, IT sector has gained a lot. There are few technology funds which gave 65% returns in last one year. I still feel this sector would perform well in 2014 too. Franklin Infotech Fund and ICICI Prutech fund are top picks for 2014.

5) Invest in Tax Free Bonds: There are several tax free bonds which have been issued in 2013 where high rated tax free bonds like NHB offered 9.01% tax free returns. Banks have been offering 9% interest which is taxable, hence these tax free bonds gained popularity. It could be one of the strategy of RBI to reduce cash flow from public and use such funds for the growth of Indian economy. I am not surprised that there would be fresh tax free bonds in 2014 which offer higher returns than 9% tax free bonds. I feel investing in tax free bonds is one of the best investment plans in  2014 too.

6) Invest in secured NCD: Though there are several Non-Convertible-Debenbtures (NCD) being issued every month with interest rates up to 12.5% per annum, investors keep worrying about the safety of the investment. I would advise investors to invest in secured NCDs which are one of the good investment plans. These secured NCD’s are generally backed up with receivables or any other company assets. Principal and interest are secured in nature. Manappuram Finance secured NCD’s issue started this week and though there are risk factors, since they are secured, investors can look for investing in such NCD’s.

7) Investment in Gold ETF: Investment in Gold should be done from long term investment perspective. As indicated in my other articles, I would personally suggest to invest in Gold ETF’s. You can look for best gold ETF’s to invest for 2014.

8) Investment in real estate: With growing real estate prices, we should not ignore investment to be made in real estate sector. Hopefully REITs investment should come into execution in 2014 so that investors can save small amounts in real estate sector like we are doing through SIP in mutual funds. I would be happy to invest in REITs in India.

9) Investment in PPF: Many readers have been asking which would be best retirement option to invest. I would personally prefer to invest in Public Provident Fund (either through the post office or through SBI or any other bank) every year. One can invest up to Rs 1 Lakh in PPF every year and get tax exemption u/s 80C and they can expect 8.5% (approx) tax free interest at maturity. This could be used as one of the best investment plans for retirement option.

10) Invest in Bank FD/RD: While all investment options are done for the long term view, you should invest part of your regular savings into a high interest earned bank fixed deposit/recurring deposit. These can be used as an emergency fund or to meet any unexpected expenses. This way you would not touch your other investments.

Conclusion: The above 10 Best Investment Plans are good to invest in 2014 and get higher returns. You should understand the risks involved in some of these investment plans before investing.

Readers, which investment options you are planning to invest in 2014. Do you have any other investment plan which is better than above. I would really love to hear from you.

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Suresh
Best Investment Plans to invest for 2014

Suresh KP
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185 comments

  • hardik

    Hello sir,
    My age is 26yra & My Annual Income is 3L.
    My current Investments are 2100/month in Lic, 1000/month as PLI.

    I want invest more to make more wealth.
    I can go for long term. I can invest 6-8k/month.

    plz guide me where I should put my money to earn more n’ more.

    • Since you do not have monthly investments except for LIC/PLI, start investing in recurring deposit to start with. Meanwhile open MF account with any MF broker. You can start investing in hybrid mutual funds in beginning and slowly move to equity funds. You can invest for 8 to 10 years in mutual funds to get good returns compared to bank FD schemes.

  • Johnson

    Hi Suresh

    I would like to invest hdfc mutual funds for period of 10 to 15 years. Every month say about Rs. 20000/- month. This is my plan to create wealth in long term for my post retirement period. I am 47 years old. Which fund should I invest regularly? Kindly give your opinion.

    Regards,

    Johnson

    • Johnson, Assuming that you would retire in next 13 years, you may look more in large cap and small portion in mid-cap. Invest in these funds. 1) Large cap – HDFC Top-200 / ICICI Pru focussed blue chip fund 2) Mid-cap – Reliance small cap fund / Franklin India smaller co’s / SBI Midcap fund 3) Balanced – You can check HDFC Prudence / ICICI Balanced fund.

  • Manas Ranjan Jena

    Hi Suresh Sir,
    I am 33 and serving as a govt servant. I got one daughter. I can invest 4K-6K p.m and that to be in long term.
    My questions to u are
    Q.1. What is the best time to start investing in SIP as u know Market is on the higher side now a
    days, Is it the right time to invest or wait?

    Q2. Where to invest I mean which are the MF fur SIP longterm and date distribution fur those SIP?

    Q3. Where to buy these MF. Should I buy online or should I contact any broker?

    • Manas, Best time to start SIP is TODAY. Dont wait for market to fall as it may not happen also. You can invest any date based on your salary date. You can open MF account with any broker and start SIP.

  • Girish

    Dear suresh,

    I am 36 old person I hve 4 lakh per annum and my wife getting 3.5 lakh per annum we have 9000 per month home loan emi.
    I purchased 25 cents in a remote area 10year back for Rs 5 lakh now the worth around Rs37 lakh now still holding., and I am residing 5 cent and a house in city that i was purchased 5 years back for Rs 15 lakh now the value is Rs 50 lakh.I am regular reader of ur articles and I am giving my other monthly investments and plan for next, pls advise or re allocate.
    Insurance

    Lic term insurance for 10 lakh
    Star health family floater for 4 lakh 6250/annum

    Invest ments monthly.

    1) Share wealth chitty 10 lakh 180 months, monthly 3500 avg
    2) FD CO OP BANK Rs 4lakh 10.25% (they providing non compond scheme but every quarte transffer to sb a/c then transffer to another fd.) This Iam planning to change Kosamattom ncd or both HDFC prudence and HDFC balanced for long term.

    PLANNED MUTUAL FUND SIP
    LARGE CAP
    HDFC TOP 200 Rs 2000 by 5th
    ICICI FOCUSED BLUE CHIP Rs 2000 by 5th
    BIRLA SL FRONT LINE EQTY Rs 2000 by 10th
    BNP PARIBAS EQTY Rs 2000 by 10th
    UTI OPPRTNTS Rs 2000 by 15 th
    LARGE &MIDCAP
    QUANTUM LONG TERM EQTY Rs 2000 by 15th
    ICICI DYNAMIC FUND Rs 2000 by 20th
    MID & SMALL CAP
    FRANKLIN INDIA SMALLER CO Rs 1500 by 20th
    HDFC MIDCAP OPPR Rs 1500 by 25th
    BALANCED FUND
    HDFC PRUDENCE FUND Rs 1500 by 25th
    HDFC BALANCED FUND Rs 1500 by 30th
    ammonts are ok.
    TOTAL 11 FUNDS Rs 20000 is this heavy? or reduce the fund and increase amount, then which funds are retain with how much monthly in each pls advice, If u r providing a portfolio with the above said information it will be a favour.
    my monthly expence is 15000 (including car petrol).
    I have one baby girl 4 yrs and planning to one more this year and thinking to MBBS in future.

  • Manas

    Hi Suresh Sir,
    I am 33 and serving as a govt servant. I got one daughter. I can invest 4K-6K p.m. and that to be in long term. My questions to u are
    Q.1. What is the best time to start investing in SIP as u know Market is on the higher side now a days, Is it the time to invest or wait?

    Q2. Where to invest I mean which are the MF for SIP long term and date distribution for those SIP?

    Q3. Where to buy these MF. Should I buy online or should I contact any broker?

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