The year 2015, was not that good for investments in stocks, with many individuals having lost money. The Sensex was down 5 per cent in 2015. To churn returns in 2016, the best way is is to allocate your assets smartly. Consider investment avenues which you have neglected in the previous year.
However, one should consider the risk appetite and tenure before investing in any instruments.
Here are investment ideas other than stocks to invest in 2016:
1) Invest in Mutual Funds
Consider investing in mutual funds, preferably best ranked as they tend to give better returns when compared to others. Investing through Systematic Investment Plans (SIP) is the best way if you lack the knowledge to invest directly.
Last year was not that good for mutual funds which gave moderate to low returns. Many experts are betting on many mid cap and small cap funds in 2016.
2) Invest in gold via new method
There are various gold schemes launched last year by Narendra Modi. One reason to invest in gold, is that it is a perfect diversification investment tool. For example, if there is a global market turmoil or geo political tensions, stock markets will crash, while gold will flare.
To some extent it will help conserve losses from other instruments, thus serving as a hedge.
3) Invest In Tax Saving Instruments
There are various investment avenues to get good returns and also avail better tax benefits. One of the best options is Public Provident Fund for a risk-averse, individual. For others, one can consider investing in Equity Linked Saving Schemes which have provided good returns along with tax benefits.
4) Invest in Company Fixed deposits
Many individuals only prefer to invest in bank fixed deposit. When interest rates are expected to fall in 2016, company fixed deposit can be a better choice of investment.
As even the best-rated company fixed deposit provide you with a high return than bank fixed deposit. Note that best-rated company fixed deposits tend to provide low-interest rates when compared to low rated company fixed deposit due to the risk profile.
5) Invest In IPO
There will be many upcoming Initial Public Offers (IPO) in 2016. One can consider investing in them as they are the fastest way to make money.
High-risk investors can consider investing after analyzing the IPO depending on the tenure.
Investment should be based on your risk profile and financial goal. Equity investment has time and again proved to be a good investment. But one can consider other avenues as well.