Best Investment Plans to invest in 2016
Happy new year 2016 to all my blog readers, email subscribers and social networking FB/Twitter followers. I wish new year brings you all good health and prosperity. I am happy to inform that I am now Crorepathi (5 year – 1 Crore goal achieved 7 days ahead of time) by investing in Best Investment Plans in India. I wish many of you would become Crorepathis in this year by planning and investing in some of these best investment plans in 2016. Stock markets as usual is swinging up and down. FII’s have stayed away in 2015 and expected to surprise us in 2016 too. In this article, I would provide some of the tips where you can make superior returns. Which are the best investment plans to invest in India in 2016? Which are those top investment Plans in 2016 where you can expect superior returns on your investments? Where should you invest your money in 2016?
Best Investment Plans to invest in India for 2016
While I am listing some of the good investment plans to invest in India in 2016 here, one should invest based on their risk appetite and investment horizon indicated here.
1) Investment in Stocks – Specific sectors and stocks
Stock markets have taken some correction now in last couple of months. While GST bill is a big hurdle for markets to move forward, we expect that such issues would get sorted out in coming months and stock markets should reach new highs in 2016. Yes there could be corrections in between. However, investors can pick-up good blue chip stocks for medium to long term investment during such market falls. Last year, I indicated that falling rupee would increase profits of Information Technology companies and falling Crude oil prices would provide opportunity for investors to invest in the aviation sector, painting industry etc., These sectors have performed well in 2015. In this year, we too bet on Information Technology stocks. Apart from this, specific stocks are expected to perform better. Some of my favorite stocks which I would like to invest during market corrections are Aurobindo Pharma, Amara Raja Batteries, Ashok Leyland, Axis Bank, LIC Housing Finance etc.,
Who can invest: Medium term to long term investors with high risk appetite can invest in stocks. Smart investors can benefit by investing in specific stocks indicated by me after reviewing them.
Also Read: How you can make 30% returns in a month from stock market investments?
2) Invest in Top IPO's
One of the fastest way to grow your money is investing in IPOs in India. In 2015, there were several IPO’s that came in, which are regular and SME IPO’s. Regular IPO’s gave 17% average returns. However, myinvestmentideas.com picked up top IPO’s where investors has benefitted with returns of approx 35% against each IPO.
Who can invest: High risk investors can invest in best IPO for 1 month to 2 years time horizon. While investing in IPO’s are good, one should pick only genuine IPO’s and not IPO’s where companies are coming to loot money from public. In my IPO analysis, I give positives, negatives and my final conclusion. This way and investor would know all facts before investing.
3) Invest in top ranked and consistent performing mid-cap / small cap Mutual Funds
One of the best way to grow your money with some risk is investing in mutual funds through Systematic Investment Plan (SIP). However 2015 was not that good period even for mutual fund schemes. Many schemes have given moderate or low returns this year. While large cap funds are expected to provide good returns, there are several mid-cap mutual funds which are expected to out-perform in 2016. Some of the top mid-cap/small cap mutual funds which an investor can look and invest are Mirae Emerging bluechip mutual fund, UTI mid-cap fund, ICICI Pru discovery fund and Franklin India smaller companies fund and some of my top bets.
Invest in mid-cap funds as indicated above. If you are a high risk investor, invest in sector based funds too. However sector fund are high risk funds.
4) Invest in top rated Corporate NCD’s
One of the high return fixed income investment option are non convertible debentures issued by Corporates. Invest in Secured NCD’s if you are high risk investor. You need to monitor the company performance and in case of decline in performance, exit appropriately.
Where to invest: Keep following my blog and I would posting NCD’s review as and when companies issue them.
5) Invest in AAA rated Company Fixed Deposits
Company fixed deposit schemes offer highest yield from 9% to 12% per annum. Since banks are offering 7.5% to 8% FD rates, hence company FD Schemes are considered as one of the best investment plans in India for 2016. However interest rates offered by corporate would be high when there is high risk. Low risk companies offer lowest FD rates. Hence, there is element of risk involved.
Where to invest: PNBHFL offers 12% yield for 4 years FD scheme. Sriram Transport Finance offers 12.3% yield for 4 years FD scheme. Mahindra Finance offers 11% yield for 4 years FD scheme. You can review other company FD schemes too before investing. I feel, it is one of the best investment plans to get fixed income by taking some risk.
6) Invest in Public Provident Fund – Tax savings + tax free returns
Another good investment plans is to invest in PPF in 2016. Since 80C exemption limit has been increased to ₹ 1.5Lakhs and PPF limit also been raised to ₹ 1.5Lakhs, investing in this PPF which offers 8.7% is a good option. As I indicated earlier, if you and your spouse can invest ₹ 1.5 Lakhs each totaling to ₹ 3 Lakhs per year for 15 years, you can create a wealth of ₹ 94.5 Lakhs tax free income. Beyond this you would get 80C exemption every year. This is one of the top investment plan to save tax, get income tax exemption and tax free returns. If you are smart, you can get maximum interest from PPF.
7) Invest in ELSS Mutual funds that offer you tax savings and high returns
One of the best way to get tax exemption u/s 80C and grow your money is to invest in ELSS Tax saving mutual funds. ELSS Mutual funds have a lock-in period of 3 years from the date of your last investment. If you are investing through SIP, each SIP would be counted as fresh investment and lock-in period would apply. ELSS funds provide 12% to 15% annualized returns, hence this is a best bet for those who are willing to take some risk, want tax exemption u/s 80C and want higher returns.
Where to invest: Invest in Best Tax Saving Mutual Funds in 2016 which I have recommended couple of months back. These are ELSS funds which have proven in terms of performance and are top ranked. ELSS Funds are one of the best investment plans for 2016 where you get tax benefit and these can provide superior returns.
Conclusion: While there are several best investment Plans, all are not suitable for every investor. Invest based on your risk appetite, investment horizon and based on your financial goal. This way you would be able to achieve your financial goals faster than you thought.
In coming weeks, I would be sharing you with tips on how I moved from 0 to Crorepathi in 5 years and how I achieved this with a perfect plan though I am a moderate risk investor. I did this 7 days ahead of my target time of 5 years.
Happy investing in best investment plans in 2016 !!!
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Suresh
Best Investment Plans to invest in India for 2016
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Hello Sir,
Your blog is very helpful.
I am also planning to invest 5 lac for next 5 yrs. I have also decided to invest in a company fixed deposit for interest rate 10% per annum and zero risk involved.
Can you advise if any company is offering above 10% with zero risk less documentation.
Regards
Ashish kumar
If you can mail me that would be great ashish.esgr@gmail.com
Again thank u so much for all your efforts for writing such a informative blog..appreciated!!
Ashish, We cannot get higher returns risk free. If a company is offering higher interest rates compared to bank, there is risk element involved.
I am a photographer, and I have around 2 lacs in cash to invest. How and where can i invest?
Hi Mr Suresh
Hope you are doing great
I am newly working abroad and need a investment solution
I want to invest yearly 5lacs but only for 5years in safe and small risk investment plan
Please guide which investment can give me good returns in 10yrs time but invest upto 5yers with calculative risk
Thanks for understanding and need your support
Regards
Rishi
Best investment is in real estate in developing areas.
But you may need to shell out a bit more than 5 lakh. Maybe 10-20 lakh.
Invest 20 lakh in FD with quarterly payouts for 5 years. Currently 5 years cumulative is at 9.5 %
Get a loan for a property valued at 20 lakh and pay the emi’s using interest earned on your fd. currently home loans are around 9.5%
Rent out the property to earn additional rental income per month to be used for the emi.
At the end of 5 years or after completion of repayment, you will own your principal amount, a new property, surplus savings from rentals and continue to earn rental income + interest on your principal amount. This apart from any appreciation of said property.
I really appreciate your article to give knowledge to investors.I think PPf is the best.
Hi Suresh ,
Wish you a very Happy New Year and Congratulations on your great financial achievement especially in the short time frame! Must have required meticulous planning and working towards achieving that plan. Waiting to hear from you on the same
i am a regular follower of your blog and thank you for creating the awareness around financial planning.
May all your wishes get fullfilled in this year and the years to come
DEAR SURESH JI I AM 60 YEARS OLD RETIRED PERSON WHO IS 100 PERCENT ENGAGED IN SPIRITUAL PURSUIT WITH NO INCOMING REVENUE.I HAVE ABOUT RS. 10 LAKHS CASH IN BANK WITH NO CLUE WHERE TO INVEST.OWN A HOUSE AND ONE EXTRA FLAT COSTING AROUND RS. 40 LAKHS KEPT FOR RAINY DAY MY ;LIABILITY SHALL BE ABOUT 10 ;LAKHS IN FUTURE FOR MARRIAGE OF DAUGHTER.KINDLY GUIDE MY SINCERE REQUEST
Mr Yadvinder would do well to invest in a short term liquid fund since he would be requiring the money within 2-3 years. He will get better returns and also save on tax. Sureshji, correct me if I am wrong.
Hi,
Suresh KP
When we can expect nationalized bank would raised their interest rate 9 or 9 plus
High expectation Sayed. In near future, you can expect reduced interest rates.
Hi Suresh,
I really appreciate your articles to educate investors. But what good can be of Rs 1 Crore in present value & what would be the future value of 1 crore in 5 years. I would consider future value of 1 crore after 5 years is around 60 lac rupees. what are your thoughts?
Hax. I always think how much money a family need? 50K per month max to survive right. To get Rs 50K or Rs 6 Lakhs one need to have Rs 65 to Rs 70 lakhs in bank account. This way you can beat inflation to some extent too. I earned 1 Crore now. I am not going to sit idle. While my 1 Crore keeps appreciation, I would still earning my money for next 20 years. Many are struggling to earn 1 Crore. Hence I feel proud to be achieved inspite of me being a moderate risk taking investor.
Hi Suresh,
As you mentioned investement in company FDs like PNB and Shriram, they are not providing 12% now. I think you can modify the value in the above lines.
Thanks
Kishore
Kishore, I am talking about yield here.
Wish you a very Happy New Year and Many many congratulation for your Great Achievement of 1 Crore.
You are a great Financial Adviser.
waiting for ur story suresh jii.. hope we follow it and get atleast 10 lakhs in 5years… i wish u tell us all the secrets
Sure Dheeraz. It is not just simple tip. It is a 3 mantra formula. I would provide detailed approach in coming weeks
Congratulations suresh … I wish u good luck
Thank you Priya. I hope you liked our blog. Keep sharing them with your friends who might be in need.
Happy New Year dear Suresh. Keep doing good work.
Eagerly waiting for your story of becoming crorepathi!
Hello Suresh and fellow readers, Wish you a very happy and very prosperous new year.
Wish u a very happy & prosperous 2016, you have given good investment ideas for 2016 , now we are eagerly awaiting for your article about o to crorepathi .
Congratulations and happy new year sir.
Thanks suresh for your ideas and congrats to achieve your target of one crore give us more ideas in 2016
thanks again Mr.suresh
Thanks Jimmy
Good ideas
Dear Mr. Suresh
We also wish you for a happy/peaceful/prosperous new year.
Please advise us how to book the profit in share market and is
there any strategy/formulae for the same?
Regards.
s.ravi chandiran
I would provide some strategies in coming weeks Ravichandran. Keep following our blog
Sir, Happy new year 2016..I shall also wait for your article on how to book full/partial profit…
Sure Suman
Congratulations on achieving your goal of Rs 1 crore. Would appreciate, if you could elaborate further on that figure? Is that amount a total investment amount (Principal + profit)? and out of that what was the principal amount and what was the profit percentage (annualized return) over the 5 years. Thanks
I would write detailed articles in coming weeks
Suresh, congrats, you are a true inspiration for lots of people. Keeping blogging and wishing you a prosperous year ahead.
Santhosh
wish you very happy new year Mr.Suresh.. Thanks a lot for your wonderful and worthful ideas…
Hello Suresh
Happy New Year . Whatever little knowledge I have about investments is because of you . I ventured into Mutual Funds owing to your sound suggestions . Keep enlightening people like us . Looking forward to your next post . Regards
Ritu
NPS??
NPS is also a good investment plan MP. I have planned to add, but on priority basis, I have not indicated. May be I would add this at the end
Hello Mr Suresh…
Wishing you and Your family a very Happy and Prosperous New Year.
This is the first article I read in new year :).
Regards
Gaurav