Wednesday, 24 June 2020

Best Investment Options in India

Investments are important because in today’s world, just earning money is not enough. Investments done today will definitely produce huge returns in the coming years provided You choose the right investment products and be invested in those for long term for wealth creation. You should invest that money smartly to get good returns out of it.

Major assets classes where one can invest are:-

1. Emergency Fund

There’s plenty of research to show that people don’t have enough cash on hand to meet emergency expenses even as little as Rs 50000. How much should you have? There’s no easy answer but some people do recommend 6 months of your living expenses. You can park this money in a liquid fund. Here’s a handy post 11:

2. Fixed Deposit

A fixed deposit refers to an investment scheme that banks and non-banking financing companies provide. FDs offer greater returns on the principal invested when compared to the returns generated from a regular savings account.

Nowadays very few banks give more than 6% interest on fixed deposits. Please check the below bank with more than a 6% fixed deposit.

3. Recurring deposit

A type of term deposit offered by nearly every major bank in India, a recurring deposit (RD) helps people with regular incomes deposit a fixed monthly amount and earn interest at a rate that, on average, ranges from five to eight percent.

Nowadays very few banks give more than 6% interest on recurring deposits. Please check the below bank with more than a 6% recurring deposit.

4.Post Office Recurring Deposit

Post Office Recurring Deposit account can be opened by Indian citizens at any post office and has a fixed lock-in period of five years. The scheme typically offers an interest rate above seven percent per annum. and has a minimum deposit amount of only Rs 10 per month (there is no maximum limit) payable through cash, cheque, or bank transfer. This type of investment is completely risk-free and since it is backed by the government, the capital completely secure.

The rate of interest offered on the RD scheme in the post office in 2019 is 7.2% p.a. Such interest rate makes it one of the most preferred investment options available.

5. High-Interest Saving Account

Private banks offer higher interest rate but they have some hidden clauses as well. I did research on major Indian banks to find the best savings account in India. You should also consider technology, customer support, and extra benefits that banks provide a savings account.

6. Stock Investment

You can open Demat account within 3 days online with minimum charges of 300rs

1. Zerodha https://zerodha.com/

2. Upstock www.upstox.com/‎

3. ICICI Direct https://www.icicidirect.com/

4. Kotak

Best Stocks to Consider Investing for Long Term

Key:

Value: Total amount invested by the Funds in the particular stock, in Millions of Rupees

Avg Share: Average of the percentage of portfolio value of the stock in all the funds it is present in

Funds: Number of Funds which have the stock as a component in it

Points: A metric derived by the sum of the percentage of portfolio value of the stock in all Funds

Dividend stocks

Not all stocks that pay dividends are good. There are two criteria which makes a good dividend stock:

  • Consistent dividend payout.
  • Consistent growth in the dividend paid.

Buy dividend-paying stocks, and hold them for the long term. What is the point about the ‘long term’? A stock that is yielding 0.5% at the time of purchase, can yield much higher with the time.

Please find below high yield dividend stock

7. Mutual Fund

You can open a mutual fund account online. Please check below the service provider

  1. Groww App https://groww.in/
  2. Zerodha Coin https://coin.zerodha.com/
  3. Upwardly https://www.upwardly.in/en/

Equity Schemes

Equity funds will be further broken down into 10 subcategories listed below.

  1. Multi-cap fund — These schemes invest at least 65% of the total assets in equity and equity-related instruments.
  2. Large-cap Fund — These schemes are required to make a minimum investment of 80% of the total assets in the equity and equity-related instruments of large-cap companies.
  3. Large and Mid-cap fund — The schemes need to make a minimum investment of at least 35% of total assets in both large-cap and mid-cap companies each.
  4. Mid-cap funds — 65% of the total assets should be invested in the equity and equity-related instruments of mid-cap companies for this scheme.
  5. Small-Cap fund — The investment required by the scheme in equity and equity-related instrument of small-cap companies is 65% of the total assets.
  6. Dividend Yield funds — This scheme primarily investments in dividend-yielding stocks. The minimum investment required is 65% of the total assets in equity instruments.

Please find below Top Performing Mutual funds to invest

8. Stock Market Investment using Smallcase

Smallcase is a simple & easy way to invest in ready-made stock portfolios. Choose from several intelligently-weighted portfolios of stocks/shares & ETFs. Based on a platform created by Bengaluru-based Smallcase Technologies, this allows investors to invest in professionally researched, diversified theme-based portfolios with their existing trading and demat accounts

How it works

First, access the smallcase platform offered by the broker. Next, choose a theme of your liking. You can see what stocks make up the portfolio and in what proportion, and the investment rationale.
Once you have finalized the selection, you can buy the smallcase. The minimum amount depends on the price and weightage of individual stocks in the portfolio. The platform will place buy orders for all stocks, which will be executed immediately depending on liquidity.
Brokers charge a one-time fee of Rs 100 when you first invest in a smallcase. The transaction also attracts the usual brokerage charges. There will be no additional fees for further orders in the same smallcase, apart from the cost of executing the trades.

All small cases are rebalanced periodically — mostly quarterly — to ensure the portfolio only constitutes companies that remain true to the broader theme.

Please find below smallcases based on the theme

9. Gold Investment

Gold investment can be done in many forms like buying jewelry, coins, bars, gold exchange-traded funds, Gold funds, sovereign gold bond scheme, etc. . If you are not in favor of holding physical gold, you can go for other alternatives ETFs, gold funds or SGBs

How to Invest in Gold: Best Gold Investment Plan

1.Gold ETFs (Exchanged Traded Funds) are similar to buying physical gold but the only difference is you don’t actually buy the physical gold. You don’t have to go through the hassles of storing the physical gold, instead, the gold bought is stored in Demat (paper) format. On the other hand, gold funds deal with investing in gold mining companies.

2.Sovereign Gold Bonds

Sovereign Gold Bonds are the safest way to buy digital Gold as they are issued by the Reserve Bank of India on behalf of the Government of India with an assured interest of 2.50% per annum. The bonds are denominated in units of grams of gold with a basic unit of 1 gram.

Some of the Top Gold Funds in India

Based on the market scenario, some of the top gold funds that you can consider investing in are:

10. Real Estate Investment

Real estate investing needs a different strategic approach than purchasing a property for personal use. When you choose real estate as an investment strategy, you purchase a property to make a profit on it. In most cases, the investor rents out the property or resells it at a higher cost.

Every young person be it a girl or a boy, IT professional or marketing person, should invest in a property as early as possible In last few years, Indian real estate market has faced major hurdles. Though RERA is now in place, but this sector is not reviving.

We have other traditional options also like NPS , PPF . You can also invest in NPS and PPF

Note :- If you can’t do it yourself, hire an advisor

If you don’t have the time or patience to do all these things, you are better off hiring a fee-only Registered Investment Advisor. Stay away from mutual fund distributors, bank employees, relationship managers, and LIC agents, etc.

A fee-only advisor — meaning he has to put your best interest first. He doesn’t get any commissions from the manufacturer of the product. He only gets paid a fee by you. That way your interests and his interests are aligned.

Please check below websites or YouTube channels that I am following

  1. https://myinvestmentideas.com/
  2. https://www.jagoinvestor.com/
  3. https://www.safalniveshak.com/blog/
  4. https://www.youtube.com/user/pranjalkamra
  5. https://www.youtube.com/channel/UCPohbSYq4IXhv0yxiy-sT4g/videos
  6. https://www.youtube.com/channel/UCNknK104P7l5KqXMiI8sqFQ
  7. https://www.youtube.com/channel/UCZn38KmU8VEsupVPhrYonzg/featured

Happy investing!


Don’t forget to leave your feedback and comments below!

Regards
Sujeet Bhujbal


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