Investment Opportunities in India
Investment refers to the concept of delayed consumption, which involves purchasing an asset, giving a loan or keeping funds in a bank account with the aim of generating future returns.
India has become one of the fastest growing economies. Investment growth in India is related to the growth of the economy. These days, people are getting more money as compared to the previous years. So, most of the investors look for emerging markets like India, where the growth rate is higher than the developed economies.
Today, it is very difficult to choose a sound investment plan so, most of the investors come with a question in mind “where to invest in India”.
There are various business investment opportunities available in both government and private sector according to risk, return, taxation, duration, etc.
Various Investment options in India
Short Term Investments options:
Bank Fixed Deposits: FD is the opportunity for retirees to diversify their investment portfolio. It is a very safe investment option in India as it generates stable income. It has low risk appetite. The period of ideal investment is 6-12 months.
Money Market Funds: They offer better returns than savings account without compromising on liquidity. The primary objective is to protect one’s capital and maximize returns.
National Saving Certificate (NSC): It is backed by the government of India, so it is a safe investment method. Minimum amount is Rs.100 and there is no upper limit.
Long Term Investment options:
Gold: Investors generally buy gold as a hedge or safe haven against any economic, political or social crises. Gold is not the right option for investment in short run because it doesn’t pay any return or interest. But, in the long run, investing in gold is no doubt, a profitable option as it can be quickly converted to cash.
Real Estate: In India, real estate has become one of most successful business investment opportunity in the last few decades. It has huge prospects in sectors like commercial, housing, hospitality, retail, manufacturing, healthcare etc.
Investment in Stock: Stocks are shares of a company. When you invest in a company’s stock or buy its shares, you own a part of a company. It is the major investment option in India in long run.
Public Provident Fund (PPF): This includes fixed-income investment for high tax payers with low risk.
Mutual Funds: Investing in mutual funds is also subject to market risks but the return is good.
Life insurance policies, bonds, debentures, etc.
Investment options depending upon goal:
India has become one of the fastest growing economies. Investment growth in India is related to the growth of the economy. These days, people are getting more money as compared to the previous years. So, most of the investors look for emerging markets like India, where the growth rate is higher than the developed economies.
Today, it is very difficult to choose a sound investment plan so, most of the investors come with a question in mind “where to invest in India”.
There are various business investment opportunities available in both government and private sector according to risk, return, taxation, duration, etc.
Various Investment options in India
Short Term Investments options:
Bank Fixed Deposits: FD is the opportunity for retirees to diversify their investment portfolio. It is a very safe investment option in India as it generates stable income. It has low risk appetite. The period of ideal investment is 6-12 months.
Money Market Funds: They offer better returns than savings account without compromising on liquidity. The primary objective is to protect one’s capital and maximize returns.
National Saving Certificate (NSC): It is backed by the government of India, so it is a safe investment method. Minimum amount is Rs.100 and there is no upper limit.
Long Term Investment options:
Gold: Investors generally buy gold as a hedge or safe haven against any economic, political or social crises. Gold is not the right option for investment in short run because it doesn’t pay any return or interest. But, in the long run, investing in gold is no doubt, a profitable option as it can be quickly converted to cash.
Real Estate: In India, real estate has become one of most successful business investment opportunity in the last few decades. It has huge prospects in sectors like commercial, housing, hospitality, retail, manufacturing, healthcare etc.
Investment in Stock: Stocks are shares of a company. When you invest in a company’s stock or buy its shares, you own a part of a company. It is the major investment option in India in long run.
Public Provident Fund (PPF): This includes fixed-income investment for high tax payers with low risk.
Mutual Funds: Investing in mutual funds is also subject to market risks but the return is good.
Life insurance policies, bonds, debentures, etc.
Investment options depending upon goal:
- Investment for safety – money market mutual funds, bank deposits, etc.
- Investment for income – company deposits, government securities, treasury, preferred stocks, etc.
- Investment for growth – equity mutual funds, domestic and overseas stocks, etc.
- Investment to fight inflation – gold, real estate, bonds, etc.
Investment from Tax Perspective:
One can minimize the tax liability on salaries by investing in eligible investments qualifying under Sec 80C. It includes investment in PF contribution, PPF investments, infrastructure bonds, mutual funds, life insurance premium, repayment of housing loan principle, PO deposits, etc.
So, there are innumerable investment opportunities available in India. All, one needs to check is, his interest, risk appetite, and investment tenure.
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