(Last Updated: May 28, 2019)

Where to invest money for good returns in India? High Return Investments



  • The necessary and basic requirement for every investment made is good returns. Every investor wants to earn higher returns with minimal risk. Does such a kind of high return investment scheme actually exist? There is an inverse relation between return and risk. And, everyone is striving to find the optimum balance between both.

    India being a diverse country, provides a variety of options to invest and earn better income.
    Selection of Investment plans may depend on various factors like:

    • Risk
    • Market conditions
    • Tenure of investment: Short term or Long term
    • Goal of such investment
    • Inflation

    Hence, there are many factors to influence your investment decisions. But, here I;ll discuss the top investment opportunities to earn higher returns in India.

    High Return Investments India:

    1. Gold:
    Gold is one of the oldest investing schemes available in India. Since ancient times gold was used as investment instrument. This has always proven to be a great investment pool in regards to returns.
    An individual can invest under gold in following ways:
    • Gold Bar
    • Gold Ornaments and Jewellery
    • Gold mutual funds
    • Gold market schemes (GOLD ETF)

    2. Equity:
    Equity is high risk investment scheme which is mainly dependent on current market situation. After correct analysis of historical company data and current market conditions and individual can invest under this scheme. The return on equity is highly volatile.

    To invest under this scheme, an individual must have a demat account.
    There is one more opportunity linked with Equity market i.e. Initial Public offering (IPO)
    IPO
    is when a company asks for capital from public for the first time. These seem to be opportunities wherein an individual can earn good returns. Of course, you can't ignore the higher risk factor here.

    3. Mutual Funds:
    A mutual fund is a pool of different securities such as stocks, bonds, and debentures. The combined holdings of the mutual fund are known as its portfolio. The mutual fund portfolio is built in to mitigate risk and at the same to time to enhance returns on investment.

    If the investments are made to recognized mutual fund scheme, the same can be claimed as tax exemption benefit under Income Tax Act (Section 80C up to Rs.1.5 Lac).

    There are below few options to choose while planning for Mutual funds:

    • Equity Mutual Funds:
      Under this scheme of mutual fund, at least 65% of the amount is invested in equity market (as directed by Securities and Exchange board of India (SEBI)). There is high risk attached to the scheme but on a general basis 5 years market return are on average 12-13%.

    • Debt Mutual Funds:
      Under this scheme of mutual fund the amount is invested in debt fund market i.e. fixed interest generating securities like government bonds, treasury bills, etc. These are low risk scheme. This scheme is popular among investors who are seeking steady returns.
      On an average the return to this scheme ranges from 5-7%.

    • Balanced Mutual Funds:
      Under this scheme of investment, there are equal parts of investment made in equity and debt markets. These schemes are low return and low risk schemes.

    This was my compilation of effective ways to to invest money for good returns in India. Do you have any other high return investment ideas? Go ahead, and share your opinions.



  • @Trader-buddy Hey, that's quite informative. I would also like to add my views here. I feel is one has surplus money, investing in real estate can also be beneficial. I know the market is low these days. But, it won't remain so always. And, if you talk of good long term investment option, this can generate good returns over a longer period.

    Real estate market is one of the fastest growing markets in India. With booming commercial development and expanding cities, real estate can be taken as highly funded market with good returns. Buying a plot or space or flat right now is one of the wise decisions amongst all the other investment options. The risks are comparatively very low and return over the period can be huge.

    So, whether you earn through rental income or sale of property, both ways it sounds good. What do you think? Am I correct in saying so?



  • @Smart2Investor @Trader-buddy The investments should be primarily based on one's financial objectives.

    If you look for long term investments options:

    • PPF or Public Provident Fund
    • Mutual funds
    • ELSS
    • Equity (the most riskier asset class)

    For Short term investment options:

    • Liquid funds
    • Short term FDs

    There are different Government schemes also that can offer decent returns especially to investors who are not willing to take any risk. Mutual funds and equity suit the investors who can take up risks.

    So, a safe investor might find PPF and FD returns also good. While a risk averse investor goes beyond fixed return generating instruments. What do you say?



  • @Ishu I always get this question: when should I start investing? And I always answer the same as Warren Buffet says "Start investing as early as possible to start reaping the benefits at the right time”.

    The decision to create your investment portfolio is based on permutation and combination in between risk and returns. There is always a set of mixed options to choose to create your own investment portfolio.

    And, the one that fulfils your goals is the "best investment" for you.



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