With a booming economy, a lot of us would want to start or maybe raise our investment game. And why not, with so many options available today, there’s something for everyone. The wide investment landscape offers opportunities for beginner and seasoned investors alike.
For those of you who wish to earn high returns, there are many alluring alternatives. However, you need to keep in mind that wanting a high rate of return especially in a short time, can be a risky game. Here are some of the best investment options that offer high returns:
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Stocks
In recent years, stocks, also called equities have emerged as one of the best investment options. Investors who are comfortable with trading online in a volatile stock market should invest in this market to gain high returns. This volatility in the company’s stocks takes place due to the company’s quarterly results, investors’ sentiment, global market conditions, political factors, and seasonal trends.
Ideally, stock prices rise with the company’s growth and offer the potential for higher returns. However, keep in mind that to invest in the stock market you need to first open demat account. -
IPOs
IPO or Initial Public Offering is another attractive investment option that claims to offer higher returns. By investing in IPOs, investors get an opportunity to invest in a private company that has offered its shares to the public for the first time. A double-edged sword, IPOs are an attractive investment option but often come with the risk of uncertainty. In most cases, the management claims to maximize year-to-year revenue by disclosing complete information to the public.
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Mutual Funds
Mutual funds are generally a great investment option if your objective is to achieve financial goals over the long term. With a long investment horizon, they claim to generate high returns. The major advantage of investing in this option is that you don’t need to manage or track your equities or commodities prices. Your fund manager will do it all. Furthermore, you can choose the option of diversification in investment to reduce risk. This is because it spreads your money across different investments.
While you don’t need to be trading online to invest in mutual funds, when you open demat account all your investments can be under one roof and analysed at a glance.
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Real Estate
Another great investment option that always attracts investors is real estate. You can passively see the prices of your property increasing and then, sell it a high prices to get high returns. Besides this, you can invest in developing or renovating properties to rent out your property to tenants. As a result, it can generate a steady and regular source of income for you.
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Sovereign Gold Bonds
The Reserve Bank of India (RBI) issues sovereign gold bonds regularly. This is considered a better alternative to physical gold investment. There remains a low risk of losing invested money as the RBI assures buyers to provide guaranteed returns.
However, the returns totally depend on the fluctuating prices of gold. You can invest in sovereign gold bonds with the help of private sector and public sector banks. In addition, you can avail the benefit of its high returns when its maturity expires after 8 years from the date of your investment.
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Real Estate Investment Trusts (REITs)
Want to invest in the real estate sector without going through the tedious legalities? If yes, real estate investment trusts (REITs) are a great investment option for you. You don’t need to purchase properties. Instead, you can invest in those REITs that generate income through properties. Due to its high resilience and potential for more growth, this viable investment option is a preferred pick among investors.
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Government-Backed schemes
If you do not want to grow your money with high-risk and high returns investment options, government-backed schemes are a sweet fruit for you. There are many government schemes like Sukanya Samridhi Yojana, Pradhan Mantri Yojana, Atal Pension Yojana, etc. to get assured investment returns. You need to invest in these funds for a certain time and then, you can get guaranteed lucrative returns after a certain period.
Before You Take Off
High-risk investments are enticing. However, the risk that they come with makes it important for you to exert caution when investing your hard-earned money. Make no mistake, there is no fool-proof investment strategy that can double up your profits instantly. Do your homework, build your knowledge and as far as possible, diversify your investment portfolio. Avoid putting all your eggs in one basket!