Investments in India.
People around Country want to make investments in india which will gives them high returns as quickly as possible without harming the principal amount.Some poeple invest to achieve financial security, on other hand some people invest to achieve their investments.The investments options you should choose should depend on you risk appetite, investment horizon,financial goals, and liquidity needs.
There are two types of investment assets that are know into the market and they are financial & non-financial assets.Financial assets can be divided into market-linked products (like stocks and mutual fund) and fixed income products (like Public Provident Fund, bank fixed deposits).Non-fianancial assets in which m ost umber of indian invest in are physical gold and real estate.
Lets have a look into top 5 investments in india.
1)Unit linked insurance plan(ULIP)
ULIP (Unit linked Insurance Plan). ULIP’s are a combination of insurance + investment. A small portion of the money invested goes to securing your life whereas the rest of the money is invested in the market. Policyholders can pay premiums monthly/annually.
In Unit Linked Insurance Plans (ULIP), the investments made are subject to risks associated with the capital markets. This investment risk in investment portfolio is borne by the policy holder. Thus, you should make your investment choice after considering your risk appetite and needs.
Another factor that you need to consider is your future need for funds. HDFC Standard Life offers you a variety of unit-linked insurance products to suit your goals – be it for your retirement planning, for your health, for your child’s education and marriage or for investment purposes.
2)Real estate investments
With migration as the core idea behind job search in bigger cities, the real estate has boomed in the last 2 decades and is likely to grow in the coming years as well. People are ready to invest in small flats with dual purpose i.e., to live and to do investment. So, keeping that in mind, the demand is growing rapidly, and it is expected to rise till 2025. So yes, scope for demand makes it a profitable business with many players.
The ratio of defaulters is high, which again makes it a smart move for genuine players to make a better scope in the market and attract customers with timely delivery of projects.
3)Public provident and funds(PPF)
PPF is one of the most popular long term investments in india which focuses on small saving investments and accure return on the same.PPF gives ageeable rate of interest and return on investments.. This scheme tends to serve as a prerequisite for financial requirements at the time of retirement. It has a tenure of 15 years which, however, can be extended by 5 years on application by the subscriber. Partial withdrawal is also allowed in some cases.
PPF has benefits in terms of intrest rate and taxation.It also allows loans and partial withdrawals after a few years of opening the account. In this article, we give you the benefits and the disadvantages of the PPF.
Selecting a mutual fund that fits like a glove is easier than it seems. With a clear-cut picture of your current needs and your future goals, you can make an informed investment decision. In fact, choosing a befitting mutual fund is similar to choosing a suitable business or career for yourself.
The risks are similar as well. A business can go bust, a career can be unrewarding and a bad mutual fund selection can impact your savings. Therefore, mutual fund investment is a serious pursuit and you should always keep your eyes, ears and mind open to succeed.
Remember that mutual fund investments are subject to market risks and the selection of the right fund is based on your financial goals, risk appetite and investment horizon. Following these practical tips on how to find the best mutual funds in India and start a mutual fund SIP can go a long way in ensuring high returns.
Let’s get straight to the point and understand how to test a mutual fund’s strength and durability based on some important parameters.
Mutual fund returns & investment horizon
Let’s be honest. One invests in a mutual fund to get good returns on their investment. But the problem with evaluating a mutual fund based on returns is that there is no fixed yardstick.
For example, assume there are Mutual Fund A (MF A), Mutual Fund B (MF B) and Mutual Fund C (MF C). While looking at these mutual funds through a mutual fund screener, a handy tool that allows you to pick out a suitable fund that fits your criteria, you find that while MF A has provided high returns in a 1-year horizon, it has low returns over a 3-year period.
On the other hand, MF B has done extremely well over a 3-year period but has given considerably low returns on a 1-year or 5-year period. And there’s MF C that has done great over a 5-year period but has given considerably low returns over shorter periods.
Look at a real example from a mutual fund screener page in the chart below. You can see that IIFL Focused Equity Fund has given the highest return over a 1-year period (over 27%). Though, it still gives high returns over periods more than a year, it is comparatively lower than the returns it generates over a 1-year period.
5)Bank Fixed deposite
A fixed deposit refers to an investment scheme that banks and non-banking financing companies provide. FDs offer greater returns on the principal invested when compared to the returns generated from a regular savings account.
Fixed deposits have a fixed tenure, hence the name. Depending on a consumer’s investment portfolio, the FD investment period can either be short-term or long-term. The interest rates on fixed deposits vary from one company or bank to another.
Fixed deposit investors need to remember, however, that they cannot withdraw money before maturity without financial repercussions. In emergencies, early withdrawal is possible after the payment of penalties.