How many types of investment in India in 2020
What are the types of investments? Before knowing this, we should know what is investment?. An investment is a means by which you get enough money to fight inflation.
Which you can easily bear everyday expenses in the future. we know that, we are saving our money in a savings account.
Where we get an interest rate of 3 to 4 percent per annum, but this interest rate is not enough to beat the inflation rate.
Consider that if the inflation rate is increasing at the rate of 8% per annum and your wealth is increasing at the rate of only 3 to 4 percent, then in the future your saved money will not be enough to fight inflation.
What is inflation? In general language, inflation is the rising price of goods and daily needs products. which keeps increasing every year, according to an estimate, it may be more than 8%.
Before investing, you should know why you want to invest. Are you investing to plan your retirement? Are you investing for your children’s education or marriage? Are you investing to get a new home or a new car?
If you know that, why you want to invest, then you will be easy to invest. Because some investments are risky and some are even less risky, first you have to make sure what kind of investment you have to make and how long it is going to be.
Now that you know why you have to invest and for how long you have to invest, you should check your risk profile to invest how much risk you can take.
Because the more risk you take, the more returns you expect to get. At the same time low-risk investments get fewer returns but that return can be more than the returns of your savings account.
What are the types of investments? And where and how it is done, let us know.
Types of investment in India
- Fixed Income types of investments (FD & Bonds, etc)
- Real Estate
Now you know where you can invest. Like you can invest in real estate or in fixed income instruments like FD, bonds. You can also invest in gold and equity markets.
Let me tell you that, the return you get in types of investment depends on your risk, the more risky you invest, the more you are expected to get good returns. You must always remember that risk and return are two sides of the same coin.
If you invest in a low-risk medium then you should not expect much return. In the same high-risk investments you get higher returns. If you want to make a low-risk investment then you should invest in a fixed income investment.
1. Fixed Income types of Investments (FD & BONDS, etc)
If you want to invest in fixed-income types of investments, then you should know where you can make this investment. Let us tell you that fixed-income investments include your bank fixed deposits or bonds issued by the Government of India, etc. You get both government and private bonds.
Companies that provide you with bonds issued by the government. They are HUDCO, NHAI, Indian Railways, NTPC, etc.
Among private companies, the companies that provide bonds are Mahindra Finance, Shriram Transport, Muthoot Finance, etc.
According to a report, you get annual returns ranging from 7% to 10% in fixed-income investments. These investments are included among low-risk investors. If you want to earn some good returns with less risk, then this is a great option for you. Can occur.
- 1. Low Risk
- 2. Annual returns 7% to 10%
- 3. Better than saving return
- 1. Low Return
- 2. May not fight with inflation
- 3. Only for low risk profile
2. Real Estate
You must be well aware of real estate types of investment, this investment usually involves the transaction (purchase and sale) of commercial and non-commercial land.
In real estate investment, you can buy a site, apartment, flat, house, or any building, etc. then sell it at a higher price after some time. you can also get rent from those purchased places.
Which definitely earns income. If you see, these investments are of moderate-risk and also seen very good returns. But legal action in buying and selling land is very complex.
- 1. Low Risk
- 2. Annual returns may upto 15%
- 3. Better than fixed income type investment
- 4. Generate good icome
- 1. Moderate Return
- 2. fight with inflation
- 3. Only for moderate risk profile
- 4. Initially need large amount of money to invest
In which you can waste a lot of time and money and in this investment you have to pay attention to the maintenance of your property, if you do not pay attention to its maintenance then the value of that property keeps falling continuously.
Equity investment is a type of investment that is considered the riskiest. In this investment, you can buy and sell shares of listed companies.
You can buy this stock on the Bombay Stock Exchange and the National Stock Exchange. To buy these investments you must have a Demat and trading account.
It has been observed in equity investments that it gives annual returns of around 10 to 15% for the last 15 years and in some investments it has been seen that it can give returns of 20 to 30%.
Let me tell you that, this type of investment is involved in making for long time investment, you do not do them for a short time, it is good. Investments that are made for a period above 1 year. They can give returns of up to 10%.
- 1. High return
- 2. Annual returns 12% to 20%
- 3. High income source
- 4. You can become company shareholder
- 1. Very high risk
- 2. You need lot of knowledge to invest
- 3. Only for high risk profile
- 4. You may need financial advisor
If you invest for 5 to 10 years, you can also get 20 to 30% returns. You have to work hard to find opportunities for such investments.
Gold and silver are considered the safest types of investment options in the world. If you invest in gold or silver for a long time, then you get 7 to 8% returns. This return is very good and it requires very little risk.
There are many ways you can invest in gold and silver. Like you can buy jewelry or exchange-traded fund (ETF), or government-issued gold bonds.
If you really want to invest, then you should invest your investment in different places rather than investing in one place. this means you diversified your investment portfolio.
To build an investment portfolio, you should invest according to your age as we are giving you some ways below.
How to build a portfolio with your different types of investment.
If you are young, you should allocate at least 70% of the investable amount in equity, 20% in fixed income, and the rest in gold or silver.
If you are a retired person, you can invest 70% of your savings in fixed income, 20% in equity markets, and 10% in precious metals.