Best Investment Alternatives in India: 2019

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#16. Equity Linked Savings Scheme (ELSS)

There are various advantages when you spend in ELSS like tax savings, higher incomes (15% to 18%), choices to invest monthly (SIP) and can be originated with as low as investing Rs. 500.

What All We Prefer

  • Approx return per year = 15%-18%
  • Years took to multiply the investment = 4 to 4.8 years

Concerns

  • Lock-in time of three years.
  • Earnings are interpreted as LTCG and any profits over Rs. 1 Lakhs is taxed at 10%.

#17. Fixed Deposit

Returns on a 3-year FDs vary from bank to bank, normally in a span of 6.5% to 8%. Additionally, there are no correlated tax advantages in this investment prospect.

What All We Prefer

  • Approx return per year = 7%
  • Years took to multiply the investment = 10.3 years

Concerns

  • Returns vary; some banks provide slighter returns for 3 years FD.

#18. Recurring Deposit (RD)

The returns made are nearly the same as a fixed deposit for 3 year duration.

What All We Prefer

  • Approx return per year = 7%
  • Years took to multiply the investment = 10.3 years

Top most  Investment Plan for 5 Years

#19. Direct Equity and Equity-Oriented Mutual Funds

Equity is the most suitable alternative for somebody viewing for growth and raising capital. The returns on unique stocks are high (>20%) for essentially healthy and developing firms over a greater span of time.

For instance, Eicher Motors produced a 5-year CAGR of 28.77%.

Nonetheless, the large profits entail high risk, where a bad pick can consume more than 70% of the business. The most reliable way is financing within mutual funds.

However, you can spend in index funds and presume 18-25% returns.

What All We Prefer

  • Approx return per year = 16 to 18%
  • Years took to multiply the investment = 4 to 4.5 years

Concerns

• High-risk, huge return investment.

#20. Gold

Over the ages, investment in gold has provided steady returns of approximately 10% hitting inflation and giving diversification. A more reliable method to spend in Gold is by a gold mutual fund, Gold ETF and gold bonds.

You can further spend in Sovereign Gold Bond Scheme governed by government and RBI. You will own gold in the ‘certificate’ form. The amount of the bonds is charged in multiples of the gold gram. The primary least investment is 1 gram of gold.

You would receive a 2.5% interest per annum on the amount spent. The Lock-in duration is 8 years.

What All We Prefer

  • Approx return per year = 10%
  • Years took to multiply the investment = 7.2 years

Concerns

• No tax benefits.