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Tuesday, June 25, 2013

Where to invest money in India?

In India, there are many different ways to go about investing. The avenue that you choose for yourself is solely dependant on how big a risk you are willing to take. The greater the risk you take, the greater the profits will be. You cannot be “safe” all the time and expect great returns all the time. Here are some of the different avenues of Investing in India. 

1. Bank accounts: This is a low return, but popular method. You will use your savings account. With this, you can withdraw your funds whenever you wish to without many restrictions.

2. Liquid Funds: This is also known as a mutual fund. This will be a type of short term investment.  This is still low returns, but it is more than Bank accounts. 

3. Fixed Deposit: When you use this method, remember that your decision will be locked in or fixed. You need to take the time to really plan this investment and do your research before you decide on this one. This method has low returns the majority of the time. This is known as the safest option for investing in India. 

4. Post Office: This method is becoming more and more popular. You can save using deposits. This has good returns and is a good way for older citizens to invest. 

5. Public Provident Funds (PPF): This is another low risk method that has low returns. It is tax free, but it takes a while before you are eligible to obtain your funds. You can use this as a retirement income or a college fund because you can build on it for a good 15-20 years. 

6. Bonds: Bonds have great rates as well as great appreciation over time. There are many tax-free bonds available, but these are usually low returns. If you want a regulated income, this method would be good for you. 

7. Company Fixed Deposit: The difference between normal fixed deposits and company fixed deposits are the risk involved is bigger. You must do all of your research and analyze the risk involved and if the company is worth that risk. This can have very high returns.
8. Insurance: This is a very low risk option. You can invest in any type of insurance such as Home insurance, car insurance, and or health insurance. 

9. National Saving Certificate: This option of investment makes most people feel very secure. It provides very low startup investment so anyone can invest. Its low interest rates have also caught peoples attention. 

10. Stock Market: If you understand the stock market, this is definitely a good method. The high returns of the stock market are very attractive. You need to understand the risk involved. Before you decide to start stock trading, you need to do your research on all the stocks and make educated decisions. 

11. Gold & Silver: Silver is a lower risk short term option. Over gold, it provides the most security. You should always invest low amounts to start out and make sure you are knowledgeable on the investments you are making. 

12. Real Estate: If you have money, this is a good way of investing. You need to have the money up front to buy real estate. The rates going up have made this more difficult for everyone. Before deciding on a property to invest in, make sure you look around and do your research. 

13. Private Equity: The main source of this investment is from angel investors. This was not very popular in India, but is becoming very known and popular. This option has great returns and there are a lot of options for 2013. 

14. NRO Account: This is a very popular investment option for NRIs living abroad. If you are an Indian living in a different country looking for a fairly easy route to invest your money in India, an NRO account is a great option. 

Any method of investing that you choose, involves some paperwork and you will always be asked to provide your PAN number for India. You will be asked this even if you are not a citizen of India. You can obtain one from any part of the world by using:

1 comment:

  1. I found this post to be very educational. Thank you for broadening my knowledge of this subject. No doubt its a great piece of writing as well. Thanks

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