We are living in the 21st century and the cost of living is rising with every passing day. Everybody is working hard to earn more and fulfill their daily needs. No matter if you are a student, a person working 9 to 5 or an employee going to retire in few years, everybody has their money goals and to achieve the goals you have to take some risks.
Great management and right investment techniques added with buying cheaper things at huge discounts can bring more returns on your money. With higher returns, there is an always higher risk included.
Before investing your hard earned money anywhere you must look for the risks included. High risks of investment bring higher returns and lower risk brings comparatively lower returns. Are you looking to invest your funds somewhere for greater returns but having difficulty in choosing a right place?
Don’t worry for you here I have listed top 10 places to invest your funds for greater returns.
1. Direct Equity
In direct equity, you become a part owner of a particular company and share both loss and profit made by the company. Direct equities provide the best results in long-term.
Investors go with direct equity because it provides higher returns in long-term compared to other investments. To achieve success in direct equity investment you must follow three simple rules:
- Go with a right company
- Wait for the best time of investment
- Hold it long
2. Equity funds
Equity funds or mutual funds are a kind of investment a person invests in the stocks or a particular company. There are two types of equity funds, active funds and passive funds.
Investing in equity funds has multiple benefits and some of them are listed below:
- Can be started with small investments (500 per month)
- Tax-free returns
- Professionally managed
- Easy to liquidate
- Capital appreciation
- Tax planning option
3. Peer to peer Lending
Peer to peer lending is a kind of practice of raising loans through crowdfunding. If you invest in P2P lending you will get your invested money with added interest.
The best part of investing money in P2P lending platforms is that you can get a decent amount of interest on your invested money. The interest rate may be very high but the rates are set by the peer to peer platforms or by the borrower and lender.
Since you don’t have the face to face integration with the borrowers and P2P lending works on crowdfunding that’s why there is a lot of risks included in P2P lending.
4. NPS ( National Pension System )
National Pension System can be a better place to invest your money if you want to secure your life after retirement. When you turn 60 you can withdraw the 60% of your money and 40% of that will be completely tax-free.
The remaining 40% of your money will be automatically invested in the annuity pension scheme providing you a monthly pension.
5. FD ( Fixed Deposit )
Fixed Deposit is one of the most popular and trusted schemes to invest money for Indians. The higher rates of interest and guaranteed safe returns make it ideal place for investment no matter if you want to invest your money for long or short time.
Fixed deposit schemes are offered by almost every bank in India and some non-banking private sectors also offer FD schemes with providing more interest on your money compared to banks.
6. PPF ( Public Provident Funds )
If you are looking for tax-free returns on your investments than Public Provident Funds will be a better place to invest your money. PPF comes with 15 years of long tenure and provides compound interest on your invested money.
Since the principal amount and the interest earned can be backed up with a sovereign guarantee, PPF investments are safer than other investments such as mutual funds and share markets.
7. Real estate
Real estate sector can be a better place to invest your money. Because of globalization many new cities and towns have come into existence over these few years and more yet to come.
The value of land is increasing day by day and if you want to get some decent return on your money you must invest your funds in the real estate.
Before investing your money you should keep one thing in your mind, the location of your property will decide its value. Your investment in real estate can benefit you in two ways – rental and capital appreciation.
Gold is one of the most precious materials in the world and if you want to get risk free high returns on your investments, investing in gold could be a better option.
You can invest money in gold in its three different forms, physical gold, gold ETFs and Gold funds. You can buy physical gold in many forms such as coins, bullions, jewelry or artifacts.
Gold ETFs is also called paper gold and it is valued similarly to gold but not exists in its physical form. Gold fund is a kind of investment a person invests in the companies involved in gold mining.
9. RBI bonds
If you are willing to invest your money and want safe returns then investing in RBI bonds will be a great idea. With investing money in RBI bonds you will get a decent interest of approximately 8% on funds invested.
These bonds provide higher returns compared to bank deposits. The 7 years tenured RBI bonds are issued in a demat form. A certificate of holding is also provided to the investor as a proof of your investment in RBI bonds.
An IPO is when a private organization or business raises capital through publically offering its own stocks for the first time. As a shareholder, there is a chance of getting massive returns from your investments.
Before investing in IPOs you need to look for a company which will go public soon. You can find such a company by registering with a brokerage firm. Brokerage firms will notify you whenever a company or corporation issues IOPs.