Where to invest money in India for higher returns?
Stock markets are at peak now. You might be wondering where to invest your money in India now for higher returns. Gold and Silver prices are falling and Rupee is appreciating. How to invest money to get good returns. Now, is there any best investment option to invest in India to get better returns? How to invest your money in India safely and get maximum returns? I am going to touch upon some of the investment options which you can try investing in them now. These are not new investment options, but investing in right investment option at the right time can help you to get good returns. Where to invest your money in India in 2016? How to invest your money in 2016 to get superior returns?
Where to invest money in India for higher returns?
1) Invest money in stocks: Don’t laugh at me. You might be getting doubt that, can we still invest in stocks as markets reached peak. It would be high risk to invest in the stock market now. While this is true, the good part is that you can still invest in the stock market now. 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. Infosys has a beta value of 0.57. Means for every 1% fluctuation in Sensex, Infosys would fluctuate with 0.57%. 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.
2) Invest money in Mutual funds: Investing in mutual funds through SIP helps you to overcome market volatility, hence you can safely invest in mutual funds. Just little caution is not 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. Investing in top performing mutual funds through SIP would always be better.
3) Invest money in tax saving options: While you can expect tax saving u/s 80C, you can get a good growth in your money by investing in tax saving options. You can invest your money in ELSS Mutual funds, PPF, NSC, 5 year tax saving FD schemes, etc., Investing in ELSS mutual funds can help you to take advantage of equity stock's growth as well provides you a tax benefit with lock-in period of 3 years.
4) Invest money in Secured Non Convertible Debentures (NCD): Many of us have a fear of investing in company FD’s and NCD’s that we may lose money. While some of the companies have cheated investors earlier, I believe in getting higher returns through secured NCD’s. E.g. currently Shriram Transport City Union Finance Secured NCD’s of Apr-2014 is going to open for subscription. These are secured in nature, hence carry less risk compared to other NCD investment options. Investing in such options would give you higher returns.
5) Invest in Bank Fixed Deposits/Recurring deposits:While I concentrate on other investment options, I would definitely invest part of my money in fixed income options like Fixed Deposits. These are safe investment options which provides you assured returns. You can refer our current and latest FD rates and invest.
6) Invest money in IPO’s: Like I indicated earlier, investing money in IPO’s in India would provide you with higher returns. In 2013, IPO’s have given more than 65% returns on the investment, hence I feel investors who have a high risk appetite could invest in IPO’s. IPO is a good option to invest money in India to get best returns.
7) Invest your money in real estate: Though I have not been investing much in real estate, I felt this was one area where I ignored and regretting now. Investing in real estate for medium to long term is always been giving higher returns. You could double or triple your money in 5 to 20 year time frame.
8) Invest your money in Gold: You might be wondering why I am advising you to invest in Gold when the prices are falling now. What is happening in the financial markets now? The stock market is increasing and gold prices are declining. Means these would react in an inversely proportional way. Do you know when the stock market declines are expected to fall? We may not exactly predict, but we can expect to happen anywhere after elections. Do you know what happens when the stock market falls? Yes, gold prices would increase. Investors would reduce their stock market exposure during market crash and invest in gold. This is what I have seen in the last few cycles. Don’t you think it is good bet to invest now in Gold and sell them after the market crash where gold prices would start increasing? You can invest in gold ETF's which are best option for investment in Gold.
Conclusion: Investing in above top investment options 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 !!!
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Suresh Where to invest money in India for higher returns
Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified - Investment Adviser and NISM Certified - Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at firstname.lastname@example.org
Please advise how it would be to invest in portfolio management schemes
Hi Tejash, I am writing article about PMS, you can check our blog next week