If you came to this article for knowing the best investment options available for you in India, then you’re in the right place.
You have some money and don’t like the idea of spending it and rather you want to grow it.
Money is something which will really help you in the future if you make a proper use of it in the present.
Most often people in India think that investing money is very risky, but that’s not the case. If you know how to do it, then you can multiply your money.
Do you know the most successful people know the power of compounding? Warren Buffet became one of the richest people in the world by just investing and growing his money.
You don’t want to earn mere pennies on the money saved in your savings account. You want it to grow exponentially.
But before telling you all the investment plans in India, I want you to know the criteria in which I have divided all of them:
- Low Risk/Low Return
- Medium Risk/Medium Return
- High Risk/High Return
But one thing you must not forget is that it is not a get-rich-quick scheme. You’re not going to earn a striking amount of money in one night.
It takes time!
The best thing about investing is that you can even grow small amounts of money.
- Best Investment Options to Consider in 2019
- Fixed Deposit (Low Risk/Low Return)
- Gold (Medium Risk/Medium Return)
- Real Estate (High Risk/High Return)
- Invest in the Art of Painting (High Risk/High Return)
- Government Bonds (Low Risk/Medium Return)
- Stock Market (High Risk/High Return)
- Mutual Funds (Medium Risk/Medium Return)
- Some FAQ’s for Beginner Investors
- Final Thoughts on Best Investment Options in India
Best Investment Options to Consider in 2019
While investing money you have to go through a lot of options. So I have compiled here some of the options on which you can trust and put your money:
Fixed Deposit (Low Risk/Low Return)
Fixed Deposit is the safest and most common option for investing purpose in India.
It is a low risk and low return investment. This means that you have a very low chance of losing money and your return (the money you will earn) will also be very less.
So how FD’s or Fixed Deposits work?
Let me tell you one thing, every bank has its FD scheme which they give to their customers. So basically the money you invest for FD is the money you invest for the bank.
This means the money you sink is used by the bank for their operational purposes. The bank will keep your money for a fixed period or tenure at an agreed rate of interest.
And after this fixed period is over, the bank will give you a fixed return. This is the basic concept behind the working of a Fixed Deposit.
The key thing is that the interest rate on your FD’s will be for sure more than the interest rate on the money in your Savings Account. So it is better if you want to save money for a long duration and grow it to some extent, then go for Fixed Deposits.
Time Span: 10 Days to 10 Years
Return on Investment: Every Bank has its own Investment Scheme
Best Banks if you Want to Earn on FD’s:
|Bank or Institution||Tenure Range||Interest Rate|
|State Bank of India||7 Days to 10 Years||6.40%|
|Bajaj Finserv||1 Year to 5 Years||8.00% to 8.50%|
|HDFC Bank||10 Days to 10 Years||3.50% to 7.40%|
|ICICI Bank||7 Days to 10 Years||4.00% to 7.50%|
These Banks may have updated their FD Rates and Tenures. If you want to get the updated result, then click here.
Gold (Medium Risk/Medium Return)
This is a very classical way and a very popular one among the Indian people. Many people buy Gold in India, not as an investment but to keep with themselves which are passed from one generation to the next generation.
The value of Gold goes up with time (or it can go down too). This is why there is a medium risk in this investment and the return will also be medium.
Also Read: 21 Ways to Earn Money from Home in India
The key thing is that this is a very safe and simple one. It’s not like other speculations where you have to do a lot of paperwork.
You just have to go to the right shop and then purchase the Gold. But there is a big flaw too.
It is very hard to check the authenticity of the Gold from the place you’re buying it. So it is recommended that you go to an authorized and reputable store for purchasing it.
Another disadvantage you may face if you buy the physical Gold is the risk of vulgarity and theft. But nowadays, there are much more advanced way if you only want to invest in Gold. One such way is Gold ETF’s.
In this way, you don’t require to own physical Gold. You can learn more about Gold ETF’s on Cleartax.
Time Span: It’s your wish for how much longer you want to keep Gold and when you want to sell it.
Real Estate (High Risk/High Return)
If you approach this investment option correctly, it can be a very lucrative and dependable way for high returns in the future.
It is for sure that you will have to spend a lot of your money, but the major problem here is that it has a high risk.
There are many factors which make this investment very risky like those of legal factors, land politics and much more.
You never know if the property owner will play a dirty trick with you or the value of the property you will buy will go low.
But in a country like India, people consider Real Estate investment as one of the safest places where they are putting their money. It is a long term investment. In some cases, you might have to wait for 5 years or even 10 years for the price of your property to grow.
So be patient!
Time Span: Indefinite
Invest in the Art of Painting (High Risk/High Return)
One investment type which is gaining a lot of popularity among the investors is true artwork.
Though it is not popular in India, but in the Europian continent, this is every investor’s choice. If you can afford some risk and you have a lot of money to invest for better returns, then investing in an artwork is the step you must take.
The value of the painting can be increased in the future and make you a huge profit. You can buy it in an auction (the way I personally recommend), from art galleries.
How to buy Artwork:
- You have to research the market before buying one. There are two types of market for buying an artwork: primary market & secondary market.
- You have to research the artist before buying it. You must check his/her qualifications, achievements, etc.
- Keep an eye on the dealer of the artwork. Make sure that the person from whom you will buy is an honest one and has some educational qualifications.
You can Learn More on Investing Money on Artwork here.
Time Span: Indefinite
Also Read: How to Start an Online Business in India
Government Bonds (Low Risk/Medium Return)
Remember I told you about FD’s where you had to invest your money by giving it to the banks.
Similarly, the Government also provides a very safe investment option. The invested money is used by the government in running the country.
The Government ensures you that you will get some return on your investment after a fixed period just like FD’s. You have a zero percent risk and your returns are also very high.
They are actually issued by the Central Government (the Government of the Country) and are supervised by the Reserve Bank of India.
It is available for a short period as well as for long periods.
Now the question comes, how to invest in Government Bonds?
For this, you need to have a Demat Account with sufficient funds in it. You have to visit the bank in which your account is or you can visit a Post Office too. You have to submit some necessary information about yourself and the assets you have.
It will take some time for your application to be approved. Once its done, a bond certificate is issued in your name.
Time Span: 1 Year to 30 Years
Return on Investment: Visit Here
Stock Market (High Risk/High Return)
Stock Market involves investing money in other companies by buying some of their shares. This share is a part of their profit which you receive.
The more profit the company makes, the higher your return will be. If you ask me which is better: Real Estate Investments or Investing in Stocks? Then obviously my answer would be the latter.
I have been personally investing in the Stock Market for 2-3 years now. But let me tell you one thing, I have though put my money in the stocks but I have not really made a significant profit.
It could be really profitable but the thing on which you have to invest most is learning about the Stock Market.
Stock Market is a very vast and complex topic. There are very few people in India who believe that investing in stocks is really profitable. Most people say that it’s very risky and you will lose your all money.
Quick Fact: If you would have invested in Berkshire Hathaway in 1960s or 1970s, then today your one share would be above $250,000. Look at this graph:
I will not recommend a very newbie to invest in Stocks. You have to first spend some time learning and then take a step.
So here are some of my tips to Invest in Stocks:
- Always be Updated about the Market. Read News Sites on a regular basis and note down Current Affairs.
- Set Long-Term Goals. Don’t think that you will earn profits quickly. Be patient!
- Don’t Invest in only one stock. Diversify your Investments to get a better outcome.
Know more about trading (stock market) opportunities on Investfly. Sign Up now and get 1st-month free trial.
Time Span: Indefinite
Mutual Funds (Medium Risk/Medium Return)
If you’re not having any knowledge on Stock Market, then, first of all, go for Mutual Funds.
Basically, Mutual Fund Companies are those companies which have expertise in the Trading area and invest your money in other companies. These are the Asset Management Companies (AMC) which are completely authorized and invest for you in different options.
They have their own highly qualified experts who make sure that your money has the best possible value return.
AMC’s keep some percentage of the profit which you make on your money. This is how these companies earn and you also earn money.
Groww Application for Mutual Funds
One such authorized application which you can install on your mobile is “Groww”.
This app has a lot of registered AMC Companies which invest your money and guarantee a return. You can invest any amount (as low as Rs 500).
Watch this Tutorial Video on Groww app:
You can learn more on Mutual Funds Investing here.
Time Span: 3 Months to 10 Years (Recommended)
Return on Investment: 1% to 30%+
Some FAQ’s for Beginner Investors
So here are some of the most common questions which a beginner investor has in his mind:
Question 1: Is there any Age Limit to Start Investing?
Frankly speaking, there is no age barrier for you to start investing. Many people like Warren Buffet started investing in their very early days.
Question 2: Should I start investing in Stocks if I’m a beginner?
If you’re a beginner and don’t know a single thing about Stock Market, then it is not at all recommended to look out for Stocks. I prefer you to start looking at Mutual Funds. As time passes by, keep on learning about Stocks and if you feel that now I can start investing, then thumbs up from my side.
Question 3: Why should I focus on Diversification of Investments?
You don’t want to lose money. Right? So you need to invest your money in different places. Don’t just invest your all money in one place. If the option in which you invested your money crashes, then you’ll definitely lose your entire money and then forget about profits. So it is very important to focus on diversification.
Final Thoughts on Best Investment Options in India
So there you go, we’ve tried to give you the best investment options if you want to try out in 2019.
The only thing I want you to do is to focus on gaining as much knowledge as you can for better returns. So pick up the option which you feel I can start it right now and don’t forget to diversify as soon as you can.
If you’ve any questions related to Investing money in 2019, then feel free to let me know in the comments section below.