21 Best Investment Ideas In India (2017)

0
3271
Investment ideas India 2017
Investment ideas India 2017

Investment is not magic it’s an art of stepping in at right time. For India, 2017 is going to be a great year. It will enhance the economy and the debt ratio of India is also low. As a result market will take a bull run.

If you are a pro investor then you will node with me on these investing ideas. If you are new to investment world and exploring the horizons of it, then here are some excellent investment ideas for 2017. No matter if you are Indian or a Global citizen, investing in Indian market is too good, which should not be ignored.

Here are 21 best investment ideas for 2017 in India

1. Gold

No matter how critical one is, there is no denying of the fact that Gold is liked by many. Gold investment may be a speculative option but till there are buyers, risk can be taken. Gold ETF is also traded in secondary market. People who wants to increase their exposure to gold (from comfort of home) can buy Gold ETF’s by online trading.

Also Read: [ 5 Working Ways To Improve Financial Condition ]

2. Buy Offshore Stocks

People like stock investing. Like icing on the cake one can choose to buy offshore stocks like indigenous stocks. Indian nationals can invest in offshore stocks. It is permitted by RBI. Institutions like India Infoline, ICICI Direct & Kotak Securities offer such trading option. Including offshore stocks in portfolio will provide excellent portfolio diversification.

3. Small Cap Stocks is Outperforming

These stocks has potential to provide high growth rates. But simultaneously they are very risky. Buying small cap stocks can provide great growth possibility. Before investing a question must be answered, why its low cap? Low cap stock having strong business fundamental is a best buy. But most low cap stocks has weak business fundamentals.

4. Asset Management

People who are cash-rich avails this facility. They take services of experts of investment to manage their money. Asset Management services are offered by Banks etc. Complete asset portfolio is managed. Proportional inclusion of stocks, funds, ETF, commodities, debts etc are taken care in asset management services. Tailor made portfolio can be build.

5. Trade Commodities

Like stock & forex trading, this option can also be used fro trading. Buying low and selling high is best optimized in trading commondities. Demat account for this is different than equity trading. Commodity trading is executed using contracts. This is also similar to margin trading. Here the margin to be paid is only 5%. Hence risk of loss is higher.

6. Early Investment In Upcoming Properties

This option can be used by both cash-rich & common men. Investing here is comparatively easier and returns are assured. Properties in Pre-Launch stage are priced the best. It is easier to earmark a property based on reputation of builder. A combination of good location and good builder can provide fantastic returns.

7. Rental Property Services

This options is great for people with high net worth. It is also property investing but not for capital appreciation. Rental Property is one excellent avenue for long term investors. Selecting a property location that inherently yields high dividends is important. High net worth people resort to lower bank loans which increases dividend yield.

8. Employee Provident Fund

Investing in this option yields maximum benefits when corpus is left untouched for long time. This investment option is unavoidable. Employee Provident Fund(EPF) is compulsory for salaried people. It is such a good option because it forcibly saves money out of people spending-pockets. On top of that this saved money also yields decent interest.

9. Explore Banks Saving Schemes

Banks offer excellent savings options. We can use these options for investing our money as they are very safe. They may not yield very high returns, but like post office savings they are absolutely safe. Fixed income generation is best offered by savings option of banks. Fixed deposits, bank bonds, PPF & Senior Citizen savings scheme are best with banks.

10. Equity Linked Savings Schemes

This options will saves income tax on one hand and gives equity like growth. This combination is mouth watering, isn’t it? ELSS (Equity Linked Savings Schemes) provides tax benefit under section 80C. Being a savings scheme, the fund managers take less risk here. But returns generated in last 5 years are still very good (>12% per annum).

11. Index ETF

Invest in Index ETF
Invest in Index ETF

It is essential for people to buy equity & simultaneously keep the portfolio diversified. Index ETF is one excellent investment idea. What make index ETF so great? Earlier, before advent of ETF, mutual fund route was the only way to buy index. But now one can buy all index at once by ETF. For people who are new to equity, ETF make perfect sense.

12. Invest in Child Plans

Improper child planning can cost lots of money. Ignoring child planning will cost huge money when emergency arrives. Better is to invest in child plans starting very early. Indian financial institutions like SBI, LIC, HDFC, Aviva, Birlasunlife etc provides good child plans for investing. Its better to invest money for child plan than keeping it in savings option.

13. Monthly Income Plan

If idea is income generation, this is one of the best investment alternative. It’s not for people who desire larger returns. MIP’s (Monthly Income Plan) are like a combination of saving option & debt linked investment. After payment of principal for certain number of years, monthly income generation will start. Investing in MIP is a good habit.

14. Non-convertible Debentures

This instrument is like company deposits. But the only difference is they are listed in stock market. NCD’s (Non-convertible Debentures) can be traded like stocks. Buying NCD of AA rated companies are better. Lower rating companies will offer higher returns but are risky. Return on capital is not ensured if company is facing cash flow problems.

15. Invest in Dividend Stocks

This is one of my personal favorite investment ideas. I love investing in dividend stocks. Stocks that yields high & regular dividends are favorite of any investor. But its not easy to catch hold of such stocks. Best dividend paying stocks are available during stock market crash. In those times strongest fundamental stocks price fall like pack of cards.

16. Invest in Forex

We love to trade for making quick money. One of the most traded market is Foreign Exchange Market(Forex). Here different currencies of the world are traded. Forex trading using Indian exchanges is permitted by RBI. In India we can trade in USD ($) only. Trading in Forex is risky as movements of currencies are very unpredictable.

17. Post Office Savings Schemes

People who do not want to practice very aggressive investing can go for Post Office Savings Schemes. Few most used plans of post office are, i) savings account, ii) recurring deposit, iii) fixed deposit, iv) Monthly income plan, v) Senior citizen savings, vi) Public provident fund, vii) NSC, viii) Kisan vikas patra & ix) Sukanya Samriddhi Account.

18. SIP in Diversified Equity Mutual Fund

People whose investment affordability is low can opt for this option. Though it is low cost option but are still very well managed. One can start a SIP in Diversified Equity Mutual Fund. Equity linked diversified fund having high AUM & 5 Star CRISIL rating can yield fantastic returns. Just keep funding the SIP for next 7-10 years.

19. Money Market Funds

This is one of those investment ideas, though great, still will not fetch high returns. Sounds confusing? We common people do not invest much in Money Market Funds. They are great because the fund is managed by expert fund managers. They keep our money liquid (like savings account) and generate returns much higher than savings account. Worth a try.

20. Invest In Arts

Investment in this option is a good idea. Here one can use a hobby to accumulate assets. I am talking about investing in Arts. There are people in this world who can pay handsomely for a work of fine art. Some examples can be painting, drawings, photographs, sculpture, hand-made crafts & designs etc. It takes an eye to locate and work of fine art.

21. Company Deposits

This option provides a good balance between stocks & bank-deposits. They are not as safe but can yield high returns (2-3%) higher than bank deposits. Company deposits is a good choice. But companies are not obliged to pay returns. Buy deposits of only high credit rated (AA) companies. AAA rated companies offer safest company deposits for investors.

 

For India, 2017 is going to be a great year in terms of overall growth. Young people should invest as early as possible to enjoy the fruit of compounding. Late starter not just loose time but also potential money. Hence Start you investment today. Try any one of these investment ideas for 2017 in India.

LEAVE A REPLY

Please enter your comment!
Please enter your name here