Where (How) to invest money for higher returns in 2017?

Where (How) to invest money for higher returns in 2017Where (How) to invest money for higher returns in 2017?


Stock markets are at peak now. SENSEX crossed 31,500 points. You might be wondering where to invest your money in India now for higher returns. Gold and Silver prices are stable and Rupee is appreciating. Is there any best investment option to invest in India to get higher return? Where and how to invest your money in India that can give you maximum returns? I am going to touch upon some of the best investment options which you can try investing in them now. These are not new investment plans, but investing in right investment option at the right time can help you to get good returns.

Also Read: 

Where (How) to invest money for higher returns in 2017?


1) Invest money in stocks


Where (How) to invest money for higher returns in 2017- StocksYou might be wondering whether we can still invest in stocks as SENSEX reached new high of 31,500 points. It would be very high risk to invest in the stock market now. While this is true, the good part is that you can still invest in stock market.

You can choose good stocks that have low beta value. Beta value of the stock indicates the volatility of stock compared to the Sensex. E.g. TCS has a beta value of 0.58. Means for every 1% fluctuation in Sensex, TCS would fluctuate with 0.58%. It could be an increase in Sensex or it could be declined in Sensex. Hence, investing in low beta value stocks would help you to stay invested in the stock market as well provide your low risk compared to other stocks during markets reaching the peak.

Another approach is, investing in stocks that posted good Q4 results in the last 2 months still have potential to go up in their share prices. You can pick-up even good mid-cap stocks in this segment which posted amazing quarterly results.

2) Invest in Large Cap or Diversifed Mutual funds through SIP


How to invest money in India for higher returns in 2017 - Mutual FundsInvesting in large cap mutual funds or Diversified Funds through SIP helps you to overcome market volatility, hence you can safely invest in mutual funds. However, one should be careful about investing large money now through lump sum investments in equity mutual funds. If you have a lump sum you can look for balanced funds, debt funds,  liquid funds and ultra short term funds to invest. You can do STP to large cap equity funds for 10-12 months from such funds. Investing in top performing large cap mutual funds or Top 10 Diversified Funds through SIP would always be a better choice.

3) Invest money in Tax Saving Options


How to invest money for higher returns in 2017 - Tax Saving optionsWe are in Jun month and many of us would have started planning for tax saving from now on. For tax saving purpose u/s 80C, you can invest in several tax saving options like ELSS Mutual funds, PPF, NSC, 5 year tax saving FD schemes, etc., Investing in ELSS mutual funds can help you to take advantage of equities as well provides you a tax benefit with lock-in period of 3 years. However, it carries some risk. You can get 12% to 15% annualized returns from such ELSS funds if invested for medium to long term. On other hand, if you are low risk taker, investing in PPF or NSC or 5 years tax saving FD scheme can give you 7% to 8% annualized returns. Choice is yours.

4) Invest your money in Company FD Schemes


There are several companies that are offering Fixed deposits with high interest. However, such company FD schemes are unsecured in nature. One smart way is to invest in top rated company FD schemes which can be less risk. There are several top rated Corporate FD schemes which are offer 8% to 10% yield in 2017.

5) Invest money in Secured NCD


Many of us have a fear of investing in company FD’s and NCD’s as some of the companies has cheated investors earlier.  However, one can invest in Secured NCD’s. These are secured in nature, hence carry less risk compared to other NCD investment options. Investing in such options would give you higher returns of anywhere between 8% to 10% per annum.

6) Invest in Bank Fixed Deposits/Recurring deposits


While I am investing in stocks and mutual funds, I would part some of my money in fixed investment options like bank FD or RDs. While they are safe investment options which provides us assured returns, such funds would be useful to invest in stocks when markets are crashing. You can look for high return recurring deposit schemes.

7) Invest money in IPO’s


Where to invest money for higher returns in India in 2017 - IPOsWhile investing in stocks may or may not fetch you good returns, I feel investors who have a high risk appetite could invest in IPO’s. In last year, there were more than 40 IPOs that came which created amazing wealth to Indian investors. While there are several IPO's, one can invest after thorough review of the IPO analysis. I have been investing in several IPO’s, however my luck is that only few of them are being allotted. Whatever are allotted, I am able to make handsome money (e.g. D-mart – 160% returns, what an IPO sirji ). You can refer Au Small Finance Bank IPO which is one of the good IPO to invest that would open this week for subscription.

8) Invest your money in real estate


When I started investing my money, some portion I diverted into real estate too. While I know that I can’t make money in short term, investing in real estate for medium to long term would always gives higher returns. You could double or triple your money in 5 to 20 year time frame. These are also called as income producing assets.

Conclusion: Investing in above best investment plans can help you to grow your money faster. Now stop thinking where to invest money in India to get good returns and start acting on them.

Happy investing!!!

If you enjoyed this article, share it with your friends and colleagues on  Facebook and Twitter. This is the biggest gift which you would be giving to this blog.

Suresh

Where (How) to invest money for higher returns in 2017

The Author

Suresh KP

Suresh KP i.e. me have written 1,800+ articles on this blog. I have done by B.Com from Osmania University and then MBA-Finance from Symbiosis University, Pune. I have over 20 years of experience in analyzing various investment options and money saving ideas. I love doing financial planning, Mutual Fund Analysis, Searching long term Stocks for wealth creation, IPOs, reviewing Insurance Products, analysing Health insurance Plans etc.

14 Comments

Add a Comment
  1. thank you sir…nice tips..for investments..

    1. Thanks RK Sharma. Give me FB like 🙂

  2. Esaf small bank offering 9% FD. Is this good?

    1. I am reviewing ESAF Small finance bank in coming week, pls wait Jay.

  3. Are there any disadvantages of investing in Gilt funds?

  4. Good collective information to decide from various options suggested by you.    The Beta value linked by you is for 2014-15.  Is this  Beta value is still valid and can be taken for our investment for the current market.  Whether Beta value is constant or variable according to market.  Shall be thankful for your reply.

    1. Yes it is 2 years old one, but BSE has not published any latest data on beta values.

  5. not informative usual stuff, nothing new , looks like a promotional effort for companies 

    1. Hi Ravi, which companies are being promoted here ? If you feel these are regular options, tell me which are the best investment options to invest your money now ?

Leave a Reply to ravi Cancel reply

Your email address will not be published. Required fields are marked *