Stock Market Learning Blog


Friday, May 15, 2020

Types of investments in India???

Types of investments in India???

Hi investors, today my topic is types of investments in India, there is more number of peoples are confusing where should they invest their money, this is an individual depended topic for everyone, in this post I will give a clear about various types of investments in India.

There are many kinds of people who are willing to take risks in low-medium-and high depends on their investment goal, anyway coming to investing peoples are confused with where should you invest your money. I will give you a simple answer to this. And coming to the post.

Investment decisions:

Before going to learn types of investments you should identify yourself and decide yourself and take a decision about your investment approaches

  • Why should you invest
  • Where should you invest
  • How our investment works

 1. set your investment goal:

                  Before going to invest you should decide and set your investment goal first, to where should you invest your money, and the investment amount will be plays a major role

Your goal will be in many kinds like buying a house, buy a bike (or) car, buy new things, and saving for any event (or) marriage etc…

Off course you set a goal for retirement, higher education, also now depending on your investment decision

2. reduce your debt:

              Before going to invest first reduce your debt( pay it) and after that, you invest your money in various asset classes, because debt is a major thing which is destroying our wealth, it is a good financial plan.

  1. Risk-taking :

             Taking risk is depends on an investor, how much risk ability of an investor have, now a day ’s risk is measured high-risk high rewards, low-risk low rewards, risk defines your investment style.

  1. time value of money:

    time value of money is a separate concept how to treat returns, we will discuss a separate post for it, now the time value of your money depends on your investment goal and your investment approach the thumb rule is if you are in your 20s you should design your goal in long term, if you in your 30s you should go for a short-term period to your investment goal

 Choose various investment objectives in India:

  • stocks :

Investing in stocks is a good and great decision, they have a high risk and high rewards in it, and you can expect 10 to 15% from stocks and it is the risky game, most of the peoples lose a lot of money from stocks and some of the peoples are been a billionaires from only stocks

  • fixed deposits :

Fixed deposits and bank deposits are same it has low risk and low rewards, you can expect 6 to 8% returns from your deposits but they have a time and locking period of time for your deposits

  • savings:

saving amount in a bank is not a good investment approach,  there is no appreciation and depreciation to your money, it’s simply saving your money in safe and secure manner, it doesn’t affect any risks and rewards

  • mutual funds:

it is the best approach for new investors in the market, it doesn’t have much knowledge and it is a good investment approach to peoples without their involvement, you can expect 10 to 12% returns form mutual funds, there has a high qualified fund manager to manage your money and they receive some commission of your return

  • Real estate:

We can expect low risk and high returns from real estate, it is a fastest growing investment approach of more number of peoples in India,

If you buy a land (or) property if you hold your property 10 to 15 years it can give a multiple times returns to you, real estate gives a tremendous result and best returns to your investment, and my suggestion if you already investing in real estate don’t quit your investment continue your investment. Because returns on real state are tremendous but they have a low liquidity and high returns it takes a very long-term approach for appreciation.

  • Gold:

Investing in gold is a more convincing way to normal peoples they have a low risk and low rewards but have a high liquidity is the main advantage in investing in gold and disadvantage is safety for your physical goods, you can’t expect returns from it but its growth through inflation.

As soon as possible I will write an article on gold investment.

 There are various investments approaches in India like insurance, gold ETF.., bonds etc…..

 Conclusion :

                  Above have various investments in India but one thing is no investments is completely risk-free, take a good decision yourself or a financial advisor but no one will care your money until unless you want to take a decision depends on your want and needs and your financial situation

 Hope Its helpful happy investing…….

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