Top 5 Investment Ideas in India in 2019

Top 5 Investment Ideas in India in 2019.

Introduction :

There are multiple ideas for investment on today and this may seem a little confusing for some to decide which plan to pick.There are different types of investment ideas available, some ideas have some risk factor and some ideas have purily safe investment.

In this article we will discuss about purily safe investment ideas.But investing isn’t all that easy. You need to identify the right asset, evaluate whether it is in line with your personal goals, and then build a strategy to generate good returns. But don’t stress out. To make it easier for you, we bring you the best investments ideas.

Here are the top 5 investment ideas in India in 2019.

1. Mutual Funds

Mutual Funds are highly popular, and arguably the best long-term investment options. It’s a common pool of money where multiple investors invest in equities, bonds, and other market instruments.

As an investor, you can buy mutual fund units in any particular scheme and these units can be cashed based on the fund’s Net Asset Value (NAV). Amongst mutual funds, equity mutual funds are in particular extremely popular. In fact, such is the earning potential of equity mutual funds that some of the best performing funds have generated Cumulative Average Growth Returns of about 20 percent in a span of a decade.

The point to note is that with such high rewards come high risk as well. It is advised that you consult financial experts before making any decisions.

Investment in these is very simple, and with the Systematic Investment Plan (SIP) you can start with as little an amount as INR 500 a month.

2. Fixed Deposit

Fixed Deposit (FD) is the best safe and long term investment option.In India, Fixed Deposits are one of the most popular ways to save money.

A fixed deposit is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date.

In a Fixed Deposit, you put a sum amount in your bank for a fixed time period at an agreed rate of interest. At the end of the time period, you receive the amount you have invested plus compound interest. Fixed Deposit (FD) are also called term deposits.

Your return on an FD will depend on the interest rate and the type of deposit you choose. You can opt for a monthly or quarterly pay-out of interest or the reinvestment option, which will give you the benefit of compounding.

3. Real Estate

A smart investment has the potential to change our lives, providing us sufficient funds to live our dreams. In India, investing in real estate is considered one of the safest bets by investors. Real estate is generally a great investment option.

Real estate is a good investment for those with the money for it. It is an excellent idea for long term investment.

Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development.

The Real Estate Regulation and Development Act (RERA) which came into practice in 2016, has further boosted this market; the industry has become well regulated with ample safety measures in place for buyers and sellers.

Real estate is very good option for investment. It can generates a passive income and can be a good long term investment option.

4. Gold

Gold is a favourite investment by all and sundry in India. If you are looking for investment then gold is good option for investment.

Investing in physical gold like bars, jewellery, and coins, comes with issues like storage, security, and even liquidity. Further, what you earn solely depends on the price of gold rising or falling.

Of all the precious metals, gold is the most popular as an investment. Investors generally buy gold as a way of diversifying risk, especially through the use of futures contracts and derivatives. The gold market is subject to speculation and volatility as are other markets.

The profit of gold investment is depends on it’s price. If you invest in gold and the price of gold rise then you are in a profit it depends on the percentage of price rises and if price falls then you are in loss but the chances are rare to fall in the gold price.

Generally, the investment in gold is always low risk and low profit type. It’s long term investment. If you have patience then gold investment is a good option for you.

5. Government Bonds

In terms of safety, government securities (G-Secs) are the safest since they are issued and backed by the government. Bank fixed deposits are generally safe, but government bonds are the safest, which is why returns on G-Secs are generally lower than those on bank fixed deposits.

Government bonds are issued by governments to raise money to finance projects or day-to-day operations. Individual investors, working with a financial institution or broker, can buy and sell previously issued bonds through the marketplace.

Fixed-rate government bonds can have interest rate risk, which occurs when interest rates are rising, and investors are holding lower paying fixed-rate bonds as compared to the market. Also, only select bonds keep up with inflation, which is a measure of price increases throughout the economy.

Government Bonds are the safest option for the investment. It’s low risk medium returns type investment. Government Bonds are the long term investments.