As Adam Smith said, “Humans’ wants are unlimited, and ways to satisfy them are limited”. In the same way, if a person limits his wants and uses the saved money for the future it acts as a weapon for unforeseen circumstances. Investment in different sectors gives higher returns. Whether it be the stock market or mutual funds, every field is filled with risks. However, investment in real estate is giving higher returns nowadays. One can rent his property for commercial use as the commercial sector makes higher profits.
Furthermore, investment in Gold can also be very fruitful. Gold has always been the first choice of investment from ancient times. From ancient days people used to buy gold for investment purposes. At that time, there were no other ways of investing. In this article, we will get to know about various investment opportunities present nowadays. However, investments are not always safe. It always comes up with certain risks. But if we want higher returns we have to take some risks.
Some of the best investment fundamentals:
1. Investment in Stocks
Investing in stocks generates higher returns. But stock investments also come with double risks. Moreover, to invest in stocks one needs a Demat account. Last year’s return of Nifty 50 was 19.42% and in the last 5 years, it gave 15.63% CAGR. Along with that, in the past years, blue chip companies have given huge returns. However, Zerodha gives the best Demat facilities with free stock delivery. On the other hand, Upstox offers account opening facilities with zero maintenance charges. Moreover, investment in stocks gives an approx 18% per year return. On the other hand, it takes almost four years to double the investment.
Also read : How to Start a Dropshipping Business in 2025: Step-by-Step Guide
2. Mutual funds Investments
Mutual funds are one of the easiest ways to invest in the stock market. Especially when someone doesn’t have expertise. Moreover, equity mutual funds generate higher returns. Furthermore, various funds have also delivered 15% to 19% returns in 3 years. Along with that in mutual funds, one can also have a lump sum investment. Interested ones can also do a SIP of a minimum of Rs.500. Investment in mutual funds gives almost 14% to 16% return per year. Along with that 4.5 to 5.14 years to double the investment. However, mutual funds carry higher risk factors, and market movements in NSE/ BSE also affect them. Apart from that, the mutual fund’s expense ratio charge in fund houses is 1% to -2%.
3. Investing in Real Estate
Investments in real estate provide capital appreciation and rental income. Moreover, for rental income, real estate location, market space rent, building quality, and demand-supply play a major role. Be it an office or a shop, higher returns ask for a good investment. Along with that, it also works in the field of diversification of investment assets. Today, there is a high demand for office spaces for the growth of the corporate environment. However, selling real estate takes time and the return also depends on the location and property. Moreover, investing in real estate takes almost 12% per year. On the other hand, it takes almost 6 years to double the investment.
4. Securing Money in Fixed Deposits
Fixed deposit is referred to as one of the most secure and safest investment options. Moreover, a fixed deposit offers a higher rate of interest than any savings account. Furthermore, banks and post offices provide a fixed deposit facility to consumers. The excess amount you have which you don’t need for a certain period of time can be put in a fixed deposit.
Moreover, Banks provide 2.75 % to 8.25% interest rate on fixed deposits, but post offices provide 6.9% to 7.5% interest on fixed deposits. However, they have different policies for time to double the investment. Banks take 8.7 to 26 years while the post office takes 9.6 to 10.4 years to double the investments. On the other hand, the minimum deposit amount varies from bank to bank. While the minimum deposit amount in post offices is Rs.1000. However, both the bank and the post office give five-year Tax benefits.
5. Investment in Gold
Over the years, investment in Gold has always been the first choice of the people. Moreover, investing in gold gives almost 8% to 10% return. Apart from just buying gold, today there are also several other ways to invest in gold. Gold always gives the best returns in spite of all the inflation. However, Some other ways are gold mutual funds, gold bonds, and gold ETFs. Furthermore, the government and RBI also regulate a Sovereign Gold Bond Scheme. Under this scheme, one will own gold in a certificate format. However, this scheme requires a minimum of 1 gram of gold. But the bond’s value increased multiple times of the gold. Moreover, under this scheme, people get almost a 2.5 % return annually on invested amounts.
Also read : Top 10 Business Ideas with Low Investment for 2025 in India
Conclusion
These are some of the best investment options, however, no investment option is 100% safe or risk-free. As we know risk and returns are directly proportional to each other. If we want higher returns then we have to take higher risks. So before making an investment in any particular sector, one should read all the pros and cons carefully. Moreover, fixed deposits (FDs) and public provident fund (PPF) carry less risks because they are under the government’s control. But they also have the risk of failure.