Where to Invest Money for High Returns in India?

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We are living in a world which is full of expectations and financial goals. Sometimes it is for the secured future and sometimes it is related to happiness and much more. We can't stop thinking of different ways through which we can earn high. For the same, people move towards different investment ideas through which they can easily get high returns. People are eager to know about the same, but they only look for quick answers like ‘where to invest money for high returns‘.

To be frank, no one who is dealing with high returns can answer such questions quickly and the reason behind the same is that high return investments come with a high risk of loss. A person should not invest without researching and having a basic knowledge of the same. Apart from this person should be aware of basic know-how. But what is basic know -how?

Let's explore

  • Do Your Best: No matter if you are a beginner or expert, just make sure to give your best. But how will you do it? You can do the same by investing in things about which you have enough knowledge. For example, if you are looking for an investment in stocks then learn something from Warren Buffet and try to implement his strategies. In case of an investment in mutual funds, be like Jack Bogle. Try to learn something from them.
  • Go for Long term investment- High return investments are usually risky. One of the easiest ways to deal with the same is to stay associated with the long term investment. Just make an investment in the long term plan.
  • Diversify- It is also a good way to minimize the risk of loss. Diversify your investment that means, don't put all your money in a single investment plan. Choose multiple ways to invest your money for a good investment portfolio.
  • Fair Price: Talking about high return investment plan, then there is nothing more important than investing in the same at a fair price. This is because high return investment generally trades at overloaded price levels. As an investment, we must be aware of the fair price in the market.

Now let's explore high return investment options on the basis of their potential to generate high-risk premium:

Real Estate Property (before launch)

Investors who are great at making an investment in Real Estate mostly invest in premium properties at pre-launch prices. The reason behind the same is that, at this stage, even renowned builders of the market get ready to sell their properties with decent discounts. As such properties are held for a period like 3-4 years, total return that you can earn on the same will be around 14.5% p.a. (Risk premium of 7.5%).
When such properties are ready to use, a person can easily expect a decent price appreciation on the same. There will be nothing wrong to say that in 4/5 years the price of the same will double. In cities like Bangalore, Mumbai, Delhi, Pune, such price growths are not uncommon.

Value Stocks

By making an investment in such stocks that are trading at undervalued price levels, a person can easily attain high returns. In today’s stock market, there are more than 5,000 number stocks. Out of all such stocks, only 10 percent would be good for investing. But you have to find out the good stocks. A person who knows how to estimate the intrinsic value of stocks, he/she can make good money in stock investing.

Mid Cap Funds

Usually, investors love to stay away from small and unpopular companies. But to make above par returns, we should pay attention to them. But the issue with small companies is that the majority of them are of low quality. That's why it is great to invest via mutual fund route. You can go for quality mutual funds that invest in mid-cap stocks. The return of good mid-cap funds has been quite good in the last few years.

REIT

In the investment industry, REIT is a new thing. It closed its IPO closed only on 20th-Mar’19, and it got listed in BSE and NSE on 1st-April’19. Right now it is trading at a market price of Rs.310+ with a minimum lot size of 400 nos available for investing. REIT carries the potential to offer great returns for its investors in the long term. And the reason behind the same is that right now for a common man, there is only one way to make an investment in real estate that is physical property purchase. But investing in physical property requires large capital (like Rs.10+ Lakhs). But in the case of REIT, capital required (at present) is very low. And it's going to motivate many investors towards it.

Index ETFs

Index ETFs are customized investment products that offer average returns over the long term. But how it is beneficial for high returns? Average Sensex based ETF offers a return of around 13% p.a. in 5 years. But a person can also increase the same by at least 1.5%. But how? When the NAV of Index ETF falls by 1% or more (in a day), buy the ETF. Keep going with the same process for at least the next 5 years. Don't forget to accumulate ETF units this way. This process seems to generate better returns (at least 1.5%+) more than a typical SIP.

Conclusion

It is a fact that high return investment is never risk-free. It is one of the biggest reasons why, before investing you must do thorough research. Learn basics and then proceed. There are many people who make money from commodities, arts, derivatives, etc. they build necessary skills to make that possible and that's what you have to do.

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  • mahendran chinna thambi @mahendran chinna thambi
    Superb.... Need to realise who eager to earn in short period...
    Like 0

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