InvestmentJuly 21, 2022by admin0

Where should we invest?

Invest more, Grow your wealth more. Investments are a major source of wealth creation across the globe. Identifying the right place to invest is equally important as the process of investment...

Invest more, Grow your wealth more. Investments are a major source of wealth creation across the globe. Identifying the right place to invest is equally important as the process of investment. Investing is one of the most powerful and effective investment tools you can use. You can change your financial future by thinking long-term and investing regularly and conservatively. For a fool-proof future and financial stability, investing in the right stream is essential. Investing right may help in beating inflation, securing the future, and creating an extra source of income.

A financial cushion benefits in the long run. If you can make more money with your existing money rather than having it sit idle in the banks, why not invest in various avenues that suit your investment needs. Any investment channel has a significant risk factor and has fluctuations relative to marketing trends. You need to analyze your financial goals, risk appetite, and liquidity needs to choose the right investing channel. A few investment avenues that are currently seeing a boom and have high returns in the forthcoming years are: 

Real Estate – Real estate is one of the fastest growing sectors in our country that is expected to reach US$1 trillion in market size by 2030. Most property rates are likely to increase every six months, which reduces the risk factor. Investing in a flat or plot is one of the best purchase options available in India. Your investment in real estate serves as an asset that can yield high returns in the long run. 

Attributes of Real Estate Investments:

  • Investment in real estate has a high tangible asset value.
  • Investing in real estate helps in building a portfolio that increases stability and yields high returns.   
  • Identifying the right time to liquidate by selling property according to the market trends.

Major real estate investments in India are categorised into :

Residential Real Estate – This category includes townhomes, condominiums, villas, single-family homes, multi-family dwellings, and townhouses. Each of these possibilities offers a variety of opportunities. For instance, the cost of well-built villas and standalone homes rises with time due to the growing land value and durability of the structure.

Commercial Real Estate – Office buildings, schools, hospitals, shopping malls, and restaurants are a few types of commercial assets that we’re all aware of. Compared to residential properties, investing in them is more expensive, but the prospects of making money are also higher.

Investing in Land – One of India’s least priced and safest real estate properties is this one. The benefit of not having to worry about theft, damage, and upkeep when purchasing real estate as an investment is obvious. 

Equity – Equity is the total amount of money that you will receive when the company pays off all its debt and liquidates its assets. Investing in equity will make you a partial owner of the company. Investing in equity is becoming more of a bigger phenomenon by day due to its high rate of returns. But, having a certain degree of risk appetite is essential as the risks in an equity investment are comparatively higher. It is judicious to consider certain aspects like choosing the right stock, time of the entry and exit in the market as it. It is equally important to analyze a share stock before investing in it. Two major categories of equity investments are:

  • Shares – units of partial ownership in a company is known as shares. Bombay Stock Exchange and National Stock Exchange are the designated stock exchanges that trade shares of listed companies. 
  • Mutual Funds – mutual funds are the ideal investment plan that offers high returns if invested for longer periods. It is an alternative to market-linked investment, which invests money in various financial instruments such as equity, debt, stocks, money market fund, and more. Market performance decides the returns. Even though the risk aspect is higher, it offers much better returns as compared to other best investment options in the market.

Start-Ups – The current scenario for start-ups in India is rapidly changing with emerging start-ups. Innovative ideas are the driving factor for a start-up to see organizational growth and fetch profits. Start-ups are high performers and have a very good chance to grow rapidly. There is also an attractive tax structure for these funds, and the equity can be claimed as a deduction from your income tax. Barring profits, there are additional advantages :

  • Investing in Start-ups helps in diversifying opportunities with a varied range of innovative and new ideas. 
  • The future of start-ups is going to blow up like no other. 
  • Investing in the ethos and values of an ambitious team or individuals.

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