Where To Invest Money For Higher Returns In India

The stock markets have gone into correction mode.

They have been breaching new peaks for the last couple of months but will for a while be in check mode.

The common query is that where should one invest money for higher returns or gains.
 
1.) IPOs:
 

In 2014, this is a great option. The returns from investments in this segment were around 65% in 2013. The Short term dips do not take away from India being a potent investment zone for the next decade.

Invest money in IPOs though if the risk appetite is present because this is certainly not a fixed return option.

2.) Real estate:
 

Real estate is still headed for further correction inspite of interest rate dips. For this sector to really provide higher returns, the June 2009 efficiencies must come back. Hence, invest your money in real estate.

Downtrends are also hinted by the over 50% ownership of investors along with possession dates seeing deferment with respect to recently launched projects. Preferable expected horizon should be long term.

3.) Tax Concession options:

One can go for equity linked savings schemes or ELSS mutual funds. Public provident funds or PPFs, and NSC or National Savings Certificates, are also eligible under section – 80 C.

One can also invest money in  tax saving bonds such as notified NABARD or REC bonds which provide tax benefits as well as higher returns.

4.) Mutual funds:
 

This option helps safeguard against market volatility due to wide portfolios held by them. For those looking to invest in chunks ultra short term or debt funds are better options as compared to les balanced equity inclined funds. Invest money in mutual funds through systematic investment plans (SIPs) for best returns.

5.) Gold and other precious metals:

The stock market has still not reached the January 2008 levels if inflation discounting is done for 5 years. The rupee is getting stronger with a new governor in Raghuram Rajan and a single majority party at the centre.

Currency appreciation and government trust high mean and less to no chances of a war, to invest your money in Gold and other precious metals will not be very wise.

6.) Equity and stocks:
 

The trading in the stock market is presently below historic averages considering inflation and other mitigating factors it is expected to go up. However, low beta value stocks will be preferable since a sustainable bull period environment is still absent.


Thus, investing money in stocks among other options is very desirable presently and for safer options one can always opt for debt bonds or the traditional fixed return options.

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