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.
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:
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.
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)
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.
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:
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%.
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%.
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.
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.
NRIs living in the United States can invest in Indian Mutual Funds, but there are some hassles that have to be overcome. You will require an NRE, NRO, or FCRN account in order to convert the foreign currency into Indian rupees, post which you can complete the KYC and begin investing in Indian Mutual Funds.
The best stocks for college students to invest in in India are those with strong fundamentals and high dividend yields, such as Reliance Ltd., ITC Ltd., and Infosys Ltd.
Liquid funds, a type of mutual funds which invest in different money market instruments. The withdrawals from these funds are processed within 24 hours and that's why these are regarded as liquid assets. The fund manager gets flexibility to meet immediate redemption requests.
The best investment plans in India for a year are to invest in fixed deposits, short-term funds, and ultra-short-term funds. These are less risky and produce relatively higher returns than banks.
Child education is really important. There are a few pointers that have to be kept in mind. Things such as income, the amount required for every milestone, investment plan, monthly savings to reach the goal, and more have to be considered.
Undertaking fundamental analysis and proper research is essential before investing in any particular stock. Apart from this, you should also consider asking seven key questions like 'What does the company do', 'How is it placed among its peers', 'How is the management of the company', etc before investing in it.
Investing in abroad markets has become quite easy these days. One can get direct and indirect exposure into the U.S. market through various methods. Investing in foreign markets like the U.S provides many benefits like Diversification into the top companies of the world, Benefit of Currency Depreciation, etc. Apart from directly purchasing the stocks listed on the U.S. stock exchanges, there are some different methods as well. Know the best methods of getting exposure to the U.S. stock markets.
There are several investment plans such as FD, Post office Monthly Savings Scheme, Government Bonds, Mutual Fund Monthly Income Plans. These can provide you with a very good monthly income.
A good return on investment is where a person makes considerable profits form their investments after a long period. However, the profits can vary form one person to another.
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?