Best Investment Options to invest in India for 2018

Best Investment Options to invest in India for 2018-minBest Investment Options to invest in India for 2018

Wish you a happy new year 2018. Some of the top recommended mutual funds like Reliance small cap mutual funds gave 70% returns and L&T Infra Mutual Fund gave 60% returns in the last 1 year. IPOs have given superior returns in 2017 up to 150% on listing day. Banking and Financial Services Sector is every green sector. All this is fine in 2017, but what about 2018? Which is the best sector to invest in 2018? Which Mutual Fund themes are expected to do better in 2018? Which are the best Investment Options to invest in India in 2018? Which are the best investments Plans that are expected to give highest returns in 2018?

Also Read: Best Low Risk-High Return Mutual Funds to invest in 2018

Which are the best Sectors / Investment Themes for 2018?

Stock market experts believe in only few sectors / investment themes that would do well in 2018.

1) Rural Theme – Government of India is focusing and planning to increase its spending on rural sector in its Budget 2018. With such move, Rural Theme based investments would gain more in 2018.

2) Infrastructure – Govt of India has been focusing on Infra in the last 3 years and it would continue for next couple of years.

3) PSU Banks – Govt of India has recently has indicated that it would pump more funds into PSU Banks which is positive move.

4) Banking and Financial Services – This is ever green sector. This is expected to continue to perform well even in 2018.

5) Other Sectors – Other sectors / Investment themes like Consumption, IT, Capital Goods, Pharma and Metals are expected to perform well in 2018.

Best Investment Options to invest in India for 2018

1) Invest in Specific Theme based Stocks

Not all stocks are going to perform well. Govt of India is expected to increase its spending in Rural Sector in Budget 2018. I would be recommending in the next few days some of the best rural theme based stocks to invest in India. Infra Stocks are also expected to do better in 2018. Consumption, IT, Pharma and Metal Stocks are expected to better. Some of the best stocks under such investment themes are State Bank of India, Maruti Suzuki, Havells India, Bank of Baroda, Jain Irrigation etc., You can also look for some of the best Blue Chip Stocks in India in 2018. Investment in Theme Based Stocks is definitely going to be one of the best investment options in 2018. 

2) Invest in Best Equity Mutual Funds for Medium to Long Term

Large cap funds have provided moderate returns in 2017. Midcap and small cap funds have performed well, however over heated now. Investing in good midcap/small cap mutual funds is a key. If you would like to invest for medium to long term, investing in diversified portfolio of large cap, diversified, midcap/small cap and balanced funds would be better. Irrespective of market state, investors can benefit with this approach.

3) Invest in Sector Mutual Funds including Infra Funds

If you are looking for short term gains of 1-3 years, invest in some of the best Infra Mutual funds, Good Banking and Financial Mutual Funds and a few Top Sector Based Mutual Funds. Best sector mutual funds recommended by us last year gave as high as 70% returns in 1 year. Some of the best sector funds are IDFC Infra Fund, L&T Infra Mutual Fund, Aditya Birla SL Infra Fund, ICICI Banking and Financial Services Fund, Reliance Banking Fund etc., One should note that sector funds are high risk and high return. You should invest in these funds only if you are willing to take such high risk. Investment in Sector Funds is one of the best investment plans to get highest returns.

4) Planning to Save Tax, Invest in ELSS Funds in 2018

ELSS Funds has been giving highest returns among the various tax saving options. The funds recommended by us last year has yielded returns in the range of 40% to 50% in 1 year. These funds have given more than 20% annualized returns in the last 5 years. Some of the best ELSS Funds to invest for 2018 are Axis Long Term Equity Fund, Reliance Tax Saver Fund etc., Invest in these ELSS Funds instead of traditional investment options like NSC, PPF or other options which can fetch you only up to 8% returns.

Also Read: Best Tax Saving Mutual Funds for 2018

5) Investment in Fundamentally Strong IPOs

There are 40 odd companies that came for IPOs in India in 2017. Out of this approx. 70% of the IPOs are listed with premium on day-1. Some of the IPOs like Salasar Technologies, Astron Paper, D-Mart and CDSL IPO’s have created amazing wealth for investors on Day-1. Some of the IPO’s like Apex Frozen Foods, Dixon Technologies, AU Small Finance Bank have provided good returns between 30% to 50%, however owing to investor interests; they zoomed to over 80% later. This proves that quality IPO’s can always zoom in future even if they are not providing high listing gains. Investors can invest in quality IPO’s through some of the best blogs that analyses the IPOs. Keep reading our reviews on IPO’s for some of the best IPOs to invest. Investing in IPOs would be one of the good investment options in 2018.

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Best Investment Options to invest in India for 2018

Suresh KP


  1. Sorry for being pessimist, If when the bull run ends this year.. Which mutual funds will be wise to invest?? Should I invest in lump sum or SIP be a better idea?? And open a consultancy, I would happily get enrolled.. 




    1. Hi Prithish, That is where I keep saying don’t invest in one category of mutual funds. One should invest in mutual funds which is diversified like large cap, midcap, balanced funds. If you are worried that bull run would end, then go for balanced funds. These would invest upto 70% in equity and 30% in debt instruments, hence relatively safe.

  2. Hello Suresh sir,

    I am very new to Mfs.

    Can you please point me to some site where there are instructions for a beginner to start investing n any particular MF. For example, how to register for a MF, how to invest and all….

    Thank you,


  3. Dear Suresh

    very good articles  Happy New year

    please include the details about the trading  technics the stocks in voltaile situation



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