As an India, we all love to save and invest money. We are always prepared for an emergency like a situation where we might need cash or liquid funds. Hence, a lot of us have a portfolio which has all types of investment. Like, a person may invest 30% to 50% of his monthly savings in the risk-free investment portfolio and the rest in the portfolio that carries a higher risk.
When we say risk-free investment, we mean the investments which carry minimal risk like Fixed Deposit, Liquid Mutual Funds and Peer to Peer Lending. The Risky investments include the holding that is volatile. These may include equity shares, Portfolio Management Services or even High Risk Mutual Funds.
If you are trying to plan your investments for 2019 then you are at right place as we have listed some of the investment options that you can consider for 2019. We would advise you to consider multiple investment options as that would help you in ensuring that you are able to manage your risk appetite.
Let us now look at the Top 10 Best Investment Options in India for 2019
Top 10 Best Investment Option in India for 2019
10. Private Equity – On number 10, we have Private Equity. This is a highly risky investment but it can pay off really well. The trouble here is to find the right company where you wish to make that investment. These companies are not publicly listed and hence it is more like investing in the company and selling off your shares when you believe that you will be able to fetch good returns. In return of the investment, you receive an ownership in the company that you invest in.
9. Fixed Deposits – Now, in India, Fixed Deposit is never getting out of fashion. There are still a lot of people who wish to invest in Fixed Deposit and the reason for investing in the fixed deposit is the fact that it provides a high amount of liquidity when needed. Moreover, there is no negative volatility which makes people secure. There is also a belief that in India, there is no Bank which can actually fail. This attracts investors towards Fixed Deposits.
8. Public Provident Funds– The fact is that Fixed Deposit offers a lower return because of the fact that there is no risk involved. Whereas, there are other options which people prefer. There people who prefer to invest more in Public Provident Funds. The reason for this investment is the fact that the government decides the rate of return and it is usually higher than that of the fixed deposit. People also get tax benefits for their investment in PPF and hence it has also emerged as a popular choice.
7. Corporate Fixed Deposits – If you are a kind of person who wishes to invest in a risk-free portfolio or the investment products with lower risk then you can also look at the investments in corporate fixed deposits. These are available via brokers and banks and in this option; you are basically purchasing the corporate bonds. The risk is higher than that of bank deposits because of the nature of corporate. This higher risk is rewarded with higher interest rates.
6. Gold Bonds and Schemes – Next on our list is Gold Bond and Schemes. There are several such things that have been launched by the government recently and to be honest, they are all good investment options. You can consider them. If you think that Gold Bonds are not your cup of tea then you can also go ahead and invest in physical gold. If you notice the trend of gold price in the last decade, you will notice an appreciation and hence it is also a risk-free option of investment.
5. Real Estate – We have talked a lot about the financial products but did we talk about something traditional yet? Well, Real Estate is the crudest and traditional form of investment. It not only guarantees you a rental income but you can also be sure of the land price appreciation in upcoming years. This is surely an investment which you can consider easily if you have some lump sum amount available for investment.
4. Stocks and Equity Shares – Another option that you can consider is the equity shares. This must only be considered if you have the knowledge of financial markets. We would suggest you to stay away from this if you are planning to invest on basis of speculations as that can wipe off your capital in a single trade. Moreover, diversify to reduce the risk for your investments. You can also invest with Asset Management Company or a stock broker who provides you with tips to trade.
3. Mutual Funds – Another popular investment option is mutual funds. There are different kinds of mutual funds available for the investors. The usual ones where people prefer to invest are tax-saving funds, equity-based funds, balanced funds, debt funds and liquid funds. You can make an investment based on your risk appetite and your goals. You can also set up a SIP to ensure that there is a discipline in your investment behavior.
2. Peer to Peer Lending – This is something new that has come up in recent years. It is something like lending to other people with help of an intermediary. You can be the lender and you can register yourself on various P2P lending portals. Once that is done, you can speak to the relationship manager and help him with the amount that you wish to invest. The amount is then given to lender after careful evaluation. The returns in this are relatively high and they can go up to 24%. This is surely something that you must explore.
1. Portfolio Management Services – The best investment option is to invest via PMS. These are professional investment service providers who will invest your money into the share market. The returns can go really high for such type of investments. The only point that you need to consider here is that PMS is only available for high net worth individuals. This means that you need to invest a minimum of Rs 25 Lakhs to avail such services but if you really plan to invest such type of amount then we would surely advise you to consider PMS and check out other details about this mode of investment.
These are some of the best Investment options in India for 2019. It should be noted that this article represents our opinion about the options available in India. In addition to this, in no way, we are advising you to invest in the options listed below.
We would suggest you to carry out your research and invest in the option which meets your risk appetite. Also, consider the risk to reward ratio and choose the investment options carefully.