Best High Return Investment Options In India

Looking for High Return Investment Options? Are you stepping into the world of investing? Are you having a hard time searching for investment options with higher returns? Residing in these times of crisis when even our GDP has raised its hands, it is a very critical decision that you need to make. It is predicted that India might face recession as well in the forthcoming future. You have to consider newer and updated options that will give you the outcome you deserve. As an amateur, one needs to understand the whole process of investing. Researching, curation of the various types of investment, and selecting the best suitable option for you that will provide higher returns. It will also be an element to diversify your investment bucket!

Frankly speaking, there are no prompt answers when one is bargaining with higher returns. Why? Because high return expenses come with a high risk of relapse. One must not invest in them without realizing the basic know-how.

Which is the basic know-how? The following: 

• Do Your Best: No matter if you are a rookie, always try to give your best to invest. How to do it? By spending on commodities regarding which you understand enough.
• Invest for Long Term: All high yield investments are unsafe. One of the simplest ways to deal with the correlated risk is by staying invested for a longer period. For instance, Just buy a sound mutual fund, and then hold on to it for 5+ years.
• Always Diversify: This is also a way to reduce the risk of loss. In diversification, you prevent yourself from spending all money on one sort of investment. Instead, you need to spread money in various, non-related options. Example: Equity, debt, real estate, gold, etc.
• Know Fair Price: When it gets to high return investment, nothing is more significant than obtaining them at a ‘fair price’. Why? Because high return ventures usually trade at exaggerated price levels (higher than its fair price). As an investor, you must be aware of how to calculate its fair price. To know the fair value of a stake, one must estimate its inherent value.

 

Once we are informed of the necessity to develop the basic know-how of investing, and the idea of “risk premium“, you are prepared to know about some high return investment options available in India.

We will try to see these high return financing prospects from the optics of their potential to produce high-risk premiums.

 

1. Real Estate

   – Real estate is the most common form of investment that people have. It can be passed to you in inheritance or you may buy a property to reside in with your family or just for investment purposes. You can even lease it to renters. Trained real estate investors target to purchase premium properties at pre-launch rates. As at this stage, even reputed developers are willing to offer generous discounts. By the time the before-mentioned properties are set for occupation, one can surely expect steep price gratitude. It will not be crazy to say that, in 4/5 years the property price will increase.

2. Direct Equity Investment –

   Stock exchanges offer the most leading and inflation-beating returns. High return investments occur with high risk. Stock markets can be unpredictable and volatile. Spending in stock markets is not likely for everyone. You need to assure that you don’t invest your crisis funds in stock markets. Equity-linked investments are a fit for those who stay invested for an extended time. To invest in direct equity, you need to have a Demat account(also available in investallign), and you can locate your trades only through the approved stockbrokers.

3. Debt Funds

   – Debt funds are favored by investors looking for a constant income with relatively lower risks, as they are relatively less volatile than equity funds. A Debt fund invests in fixed assets instruments. As these funds spend most of the money in debt instruments such as government securities, corporate bonds, money market instruments, etc., they are reflected to be a comparatively safer investment than equity. However, there are risks to investing in debt funds too. They are not influenced by equity market volatility. However, long-term assets do carry reasonable high risk and any conflicting interest rate change can give negative returns. But at the same time, if picked wisely, debt funds can give medium to high returns. Thus, investors can recognize debt funds as one of the best investment options in India.

4. Gold-

   Investing in Gold as it’s not only acknowledged to be one of the best investment options but also to be one of the greatest hedges for Inflation. Today, there are several options to invest in gold. Investors can buy solid gold through gold coins or bars; they can buy goods backed by physical gold (e.g. Gold Exchange Traded Fund), which grants direct exposure to the gold rates. Gold, at times of the pandemic, contrary sentiments and in downturns of the syndicates is an asset class of choice. It is in these times that gold yields very healthy returns. Apart from this, there are three new Gold Schemes introduced by the Government of India, which is currently flourishing in the Indian gold market. They are viz, the Sovereign Gold Bond Scheme, Gold Monetisation Scheme, and the Indian Gold Bond Scheme. Investors can spend in these schemes and design their gold investments accordingly.

5. Bank Deposits-

   Bank fixed deposit (FDs) is one of the most attractive investment opportunities in India. The primary investment option that an Indian would consider when having a lump sum to invest is FDs. FDs offer extremely higher returns than a normal savings bank account. Senior citizens are granted a slightly higher rate of interest. Recurring deposit is an alternative of FDs to those who don’t hold a lump sum to finance. RD is for people who are willing to invest a fixed amount regularly. Like FDs, RDs too contribute a much higher rate of interest than regular savings bank accounts.

Over to you!

High return investments are never hazard-free. This is the cause why, before spending on them, one needs to strengthen the adequate understanding of investing. Once you have achieved the basics, it is vital to pick the right investment option. Some people make money from products, arts, derivatives, etc as well. Those are sound investments for them, but it may not work for me and you.

Always deal with those financing vehicles about which you possess sufficient information. I have suggested five such investment vehicles in this blog post. Hope it will give you a clearer idea of what is suitable for you.

Choose wisely and stay safe!