Investing your money without proper planning or research? Learn about your investment options!

Dr. Deepti Dwivedi

Investment options available in India have evolved rapidly over the past decade. Investment options that were once only accessible to large investors are now available even for small-scale investors, thanks to the proactive steps taken by our government and various financial bodies. 

I have summarised some of the investment options available in our country, but do keep in mind that you need to invest in these products as per your financial goals; Don’t blindly invest. Talk to a professional advisor before you take any steps. 

INVESTING IN STOCKS

The National Stock Exchange of India (NSE) and Bombay Stock Exchange is open to Indian citizens and foreign investors not listed on another significant international market. An investor may purchase individual company shares as well mutual funds and ETFs that hold multiple stocks. Today in India, we have seen a rapid rise of retail investors (common person) investing quite a bit of their savings into the stock market. In a recent SBI report, it was pointed out retail investors are increasing because of various reasons like low-interest rates in bank deposits, read more about it here https://www.livemint.com/market/stock-market-news/why-more-and-more-individual-investors-in-india-are-investing-in-stock-market-11624337297582.html 

MUTUAL FUNDS

Mutual funds are professionally managed portfolios that hold hundreds or thousands of stocks. Depending on the fund’s objective, the fund may also invest in other financial assets such as bonds and money market accounts. Here the benefit is these funds are managed by fund managers who are experts in their field. Today in India, it looks like Mutual Fund is a must in your financial planning portfolio.

 

INSURANCE 

Investment in insurance is quite popular with many prominent players in the insurance industry. This is because insurance companies’ investments allow investors to have protection cover as well as grow wealth over the long term. But again, here, there are numerous products, so select the ones aligned to long-term financial goals. 

 

GOLD 

Investment in gold is a long-term investment solution for many investors. The price of buying gold has gone up exponentially over the last five years, meaning that if you were to purchase today, it would be worth far more than what you paid for it compared to five years ago. In addition, investment in gold is a low-risk investment with a reasonable rate of return so far, which means it’s a good option for anyone looking to diversify their portfolio.

 

PRIVATE EQUITY 

Investment in private equity has become increasingly popular over the last five years. These investments are typically linked to Indian companies that are looking to expand or grow. Private equity investment is a chance for investors to get involved in a growing company with the potential of making more money than if they had just placed their funds into other avenues such as bank deposits. This option is not available to everyone; however, there are some avenues to buy unlisted shares. Do check with me in case you want to know more about unlisted shares. 

 

PUBLIC PROVIDENT FUND  

Investment in the Public Provident Fund is a popular option for many individuals as it provides them with a steady, minimum guaranteed return on their investment. 

 

REAL ESTATE 

Investment opportunities in Indian real estate have boomed over the last five years, from small apartments to large sprawling bungalows. Investment in Indian real estate is seen as very lucrative and allows you to make money off of the three most important things anyone can have; their home, their office, and their place of business.

 

BANK FIXED DEPOSITS 

Investment in bank fixed deposits is seen as typically the most popular choice for individuals looking to grow their savings. Investment in bank fixed deposits is a safe way to save money over time and provide you with interest which can help supplement your income or help cover expenses monthly. Investment in fixed deposits has consistently been the preferred method for investing as there is little risk, and it provides a very steady return on investment. However, it may not be the best option for many as the returns are typically low compared to other upcoming avenues. 

Investment in India has become very lucrative over the last five years, mainly attributed to the rise of mutual funds and the stock market in general. These industries have given many investors a chance to make some serious cash correctly with the proper management. Investment choices have also expanded to include gold and funds to diversify one’s portfolio, which has become a popular choice for many investors. However, bank-fixed deposits investment has consistently remained the most popular choice for individuals looking to grow their savings, but it may not be the best option. These days, investment opportunities are widespread and diverse, with something for everyone, no matter how large or small. Talk to a professional financial advisor to know more.