The Indian economy is attracting attention globally with hopes that reforms would ensure faster economic growth. Crude Oil has been falling and inflation numbers are good.
Most Indians typically believe in saving rather than investing. It is high time to change this concept and start investing to make better returns.
One should always be clear on what he is looking for. As products differ depending on age and duration of the investment, so, one should choose the product wisely and should not follow the trend blindly.
Here are some of the investment products which offer high returns when considered for long time.
Investing in stock market
If you are still thinking to invest in the stock market than it is high time you start investing. However, investing in stock market involves lot of research and patience.
Beginners should never invest everything into one stock, it is always good to diversify among other stocks. Start investing with small amounts, one can make better returns with patience and being alert.
Having knowledge on the product will definitely tend to benefit.
Invest in Mutual Funds
Investing is Mutual Fund is less risky when compared to stock market investment. However, risk here will depend on the type of the fund you have invest in.
Such as investment in debt funds are less risky as compared to equity funds. Hybrid funds are better when you expect more returns and less risk averse.
The most important part in Mutual Fund investment is asset allocation based on the duration and risk capacity. Click to know the risk involved in Mutual Funds.
Investment in Real Estate
Since few years, real estate market has seen good growth and provided better returns.
Most of the traditional investors believe that real estate is one of the best investment as it provides a secure future.
Once you own a real estate either you can make use of it or enjoy the rent as returns on the investment.
REITs are yet to kick start in India. The REIT is the one who is in possession and takes care or manages the developed property that earns income.
Invest in NCD
Non Convertible Debentures(NCDs) are debentures with medium-term or long-term financial instruments issued by corporations to raise funds. Typically, there are two type of debentures, convertible and non-convertible debentures.
These NCDs comes with a risk element. Individuals who have risk taking capacity can look for it. Here are few advantages of NCDs.
Invest in Tax Saving Instruments
The limit under section 80C for tax saving instruments has been enhanced to Rs 1.5 lakh in the Union Budget for 2014-15 from the earlier Rs 1 lakh.
One can consider different avenues such as PPF, ELSS, Premium payment, NSC based on the interest rate and money they want to lock in for. As most of the tax saving instruments come with minimum lock in period. Click to see best tax saving instruments.
Other Best Investment Avenues
Some of the other investment avenues are Investing in IPO, Gold and Fixed deposits.
As mentioned earlier, higher returns are available on the products with high risk. Means risk and return always go hand in hand. If you are expecting higher returns than you must be ready to take higher risk.