It always becomes a difficult investment proposition when interest rates are falling and SIPs have just about delivered marginally better returns than bank deposits. This leaves us with a dearth of investment opportunities in a climate that has failed to yield any great superlative returns. Here are 7 investment ideas that can generate decent returns in the next three years. We have mixed the same with FDs, equity shares and mutual fund schemes as well.
KTDFC Fixed Deposit
KTDFC is a government of Kerala owned company and offers the best interest rate when compared to banks or any other company fixed deposits. The fixed deposits are available at an interest rate of 8.50 per cent on a 3-year deposit, which is the best in its class. The fixed deposits are guaranteed by the government of Kerala, which makes them a superb bet at the current levels. Senior citizens are entitled to an interest rate of 8.75 per cent. Interest on FDs is fully taxable as per the present norms.
If you are looking at a 3-year perspective your best bet has to be Reliance Industries. At the current market price of Rs 1304, the stock is not a bad bet for a number of reasons. The petchem business continues to show a robust performance and the retail business has begun to show profits at the operating levels. The aggressive expansion in Reliance Jio is likely to yield good results in the coming few years and the freebies now draw to a close by the month end. The refining business continues to report excellent gross refining margins (GRMs), which is way higher then that of the Singapore GRMs. On all parameters, Reliance Industries is an excellent bet. In fact, the stock is trading at a p/e of just 12 times, which is amongst the cheapest from the Sensex stocks. Buy the stock with a long term perspective in mind.
IDFC Bank Deposits
This again has to be the best in terms of interest rate. The bank offers an interest rate of 7.50 per cent on its 1 year deposit. So, if you have plans to invest for approximately one year, this should be the best bank deposit that you should look at. IDFC Bank is a relatively new bank on the block and is looking at aggressively expanding its network. A good investment bet for a period of one year, considering that one year deposits are presently yielding just 7 per cent or less at other private sector banks.
SBI Blue Chip Fund
If you are looking at a mutual fund scheme with a 3-year time frame, we suggest that you look at the SBI Blue Chip fund. The fund has generated a return of 218 per cent on an average each year, in the last three years. Not a bad bet, if you are looking for this time period. The fund has been rated as 5-star by Value Research Online, and also has a very low expense ratio. The growth plan has an NAV of Rs 32.25, while the dividend plan has an NAV of Rs 18.15. The fund has a solid portfolio including the likes of HDFC Bank, Larsen and Toubro, UPL and Mahindra and Mahindra. A good bet if you are looking for a 3-year time period.
Bajaj Finserv FD
This fixed deposit comes from the Bajaj stable. The FDs offer an interest rate of 8.05 per cent for three years, which is again very good. This is way better than bank deposits, which are offering an interest rate of around 7 per cent for the same tenure. The FDs are rated as AAA, making them extremely secure. If you have deposits over Rs 1 crore, you would be entitled to an interest rate of 8.50 per cent. Senior citizens also receive an interest rate of 1 per cent.
Birla Sun Life Top 100 Fund
If you are looking at a slightly longer term perspective your ideal fund should be the Birla Sun Life Top 100 Fund. Like SBI Blue Chip Fund, this fund has also yielded good returns in the last three years. Birla Sun Life Top 100 Fund has yielded returns of close to 18 per cent in the last three years. This is not bad at all, when compared to any other asset class. The fund has been rated as 5-star by Value Research online. However, the expense ratio of the fund is not as low as SBI Bluechip Fund.
Shriram Transport Finance Unnati Deposits
Shriram Transport Finance Unnati Deposits, give you an interest rate of 7.95 per cent on 3-year deposits. This again is one of the finest interest rates, from company deposits. The company has a very strong credit rating by the leading credit rating institutions in the country.
The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article. The author and his family do not own any shares or investments in the above mentioned investments.