Best Investment Options In India

The year 2014 and the times ahead are expected to bring around a turn in fortunes for the world economy.

For the past year or so the investors have been yearning for some real returns on physical as well as financial assets.

The stock market is going through the roof at the moment and Gold and silver no longer seem set for an upward trend.

Realties:

The sector is giving mixed reactions and should be looked at as a long term investment option for now if at all. While a non coalition government should mean more stability, this sector has always been mired in unpredictability. Liquidity concerns, guarded sentiments and a government under the immense pressures of promises made could very well keep this sector pinned to the walls. Hence, real estate investment while expected to revive now that a stable government is at the centre is still reeling under the pressures of higher burdens of costs due to increased cost of borrowing with banks showing reluctance in lending to this sector.

Gold & Silver:


Gold investment is an option which will never lose its lustre, however after the extended bullish phase of 2008 till 2014, it is expected that gold will either stay within a certain range else correct. The world economy has revived and the outlook towards Indian markets is expected to improve. Further, debt and equity are expected to outperform gold in the near future as has been the case so far in 2014. Gold is falling globally, however in India the dollar rupee tussle has still kept it alive. However, silver and gold investments are not expected to bring home much in 2014.

Equities and Debt:

Sensex has breached the record 27,000 mark and are headed only one way – Upwards. Gold has come up with negative returns so far in 2014 and this further establishes the shift in market sentiments. However, the factors essential for sustaining a bull market are still absent in the form high interest rates and inflation. Thus, expect gyrations here until capacities and risk appetites can be enabled by all round stability. Hence, share market investment should be done preferably not in large sums and through SIP (Systematic Investment Plan) mode.

Thus, debt is currently a much better option, even so than fixed deposits. This is so not only due to the tax advantage but also a better yield to maturity. However, bonds and debentures are dependent on secondary market financial institutional issues.

The best investment options in India also include time tested options such as Post office savings scheme and Public provident fund with the recent budget increasing the investment ceiling for the same.

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