Where to invest money for good returns in India? High Return Investments
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- Updated On:28-Jan-2021
- Replies:2
Short Answer
We all look to earn good returns on the money we invest. Putting money in High return investments is one way of generating better income. The different places to get good returns are mutual funds, equity, and gold investment in India.
Detailed Answer
The necessary and basic requirement for every investment made is good returns. Every investor wants to earn higher returns with minimal risk. Does such a kind of high return investment scheme actually exist? There is an inverse relation between return and risk. And, everyone is striving to find the optimum balance between both.
India being a diverse country, provides a variety of options to invest and earn better income.
Selection of Investment plans may depend on various factors like:
- Risk
- Market conditions
- Tenure of investment: Short term or Long term
- Goal of such investment
- Inflation
Hence, there are many factors to influence your investment decisions. But, here I;ll discuss the top investment opportunities to earn higher returns in India.
High Return Investments India:
1. Gold:
Gold is one of the oldest investing schemes available in India. Since ancient times gold was used as investment instrument. This has always proven to be a great investment pool in regards to returns.
An individual can invest under gold in following ways:
• Gold Bar
• Gold Ornaments and Jewellery
• Gold mutual funds
• Gold market schemes (GOLD ETF)
2. Equity:
Equity is high risk investment scheme which is mainly dependent on current market situation. After correct analysis of historical company data and current market conditions and individual can invest under this scheme. The return on equity is highly volatile.
To invest under this scheme, an individual must have a demat account.
There is one more opportunity linked with Equity market i.e. Initial Public offering (IPO)
IPO is when a company asks for capital from public for the first time. These seem to be opportunities wherein an individual can earn good returns. Of course, you can't ignore the higher risk factor here.
3. Mutual Funds:
A mutual fund is a pool of different securities such as stocks, bonds, and debentures. The combined holdings of the mutual fund are known as its portfolio. The mutual fund portfolio is built in to mitigate risk and at the same to time to enhance returns on investment.
If the investments are made to recognized mutual fund scheme, the same can be claimed as tax exemption benefit under Income Tax Act (Section 80C up to Rs.1.5 Lac).
There are below few options to choose while planning for Mutual funds:
1. Equity Mutual Funds:
Under this scheme of mutual fund, at least 65% of the amount is invested in equity market (as directed by Securities and Exchange board of India (SEBI)). There is high risk attached to the scheme but on a general basis 5 years market return are on average 12-13%.
2. Debt Mutual Funds:
Under this scheme of mutual fund the amount is invested in debt fund market i.e. fixed interest generating securities like government bonds, treasury bills, etc. These are low risk scheme. This scheme is popular among investors who are seeking steady returns.
On an average the return to this scheme ranges from 5-7%.
3. Balanced Mutual Funds:
Under this scheme of investment, there are equal parts of investment made in equity and debt markets. These schemes are low return and low risk schemes.
This was my compilation of effective ways to to invest money for good returns in India. Do you have any other high return investment ideas? Go ahead, and share your opinions.
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Discussion (1)
There are various terms that play a huge role in determining how to choose stocks for long term investment such as P/E ratio, dividend consistency, etc. For a more elaborative information head below and read the explanation given for better understanding.
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Raghav Jha
The investments should be primarily based on one's financial objectives. If you look for long term investments options: 1. PPF or Public Provident Fund 2. Mutual funds 3. ELSS 4. Equity (the most riskier asset class) For Short term investment options: 1. Liquid funds 2. Short term FDs There are different Government schemes also that can offer decent returns especially to investors who are not willing to take any risk. Mutual funds and equity suit the investors who can take up risks. So, a safe investor might find PPF and FD returns also good. While a risk averse investor goes beyond fixed return generating instruments. What do you say?