FINANCIAL INDEPENDENCE: 5 BEST INVESTMENT OPTIONS WITH HIGH RETURNS IN 2024
We live in an era where we are faced with an abundance of choices in nearly every aspect of life, from food and clothing to vehicles and vacation destinations. The same holds true for investment decisions, where a wide array of options can make it challenging to choose the right one. When it comes to selecting an investment plan in India, the choices are equally diverse.
When making an investment decision, the key question one should ask himself or herself is which investment plan best aligns with their needs. Start by deciding your investment time-frame. One should set financial goals based on time horizon: long-term, medium-term, and short-term. Once you have a clear understanding of your time-frame, selecting investment options becomes easier.
As your investment plan helps you achieve your financial objectives while considering your risk tolerance at different stages of your financial journey, it’s important to remember that investing is not a one-time process. You should regularly revisit and adjust your investments to stay aligned with your evolving goals and circumstances.
Mayank Bhatnagar, Co-founder & COO, FinEdge, says, “There is no one-size-fits-all when it comes to investing. Risk and returns go hand in hand, and one must try to generate optimal returns from your investment portfolio by taking informed risk based on your investment horizon and the tenor of your financial goals.”
In this article, we will explore the top 5 investment options for investors in India in 2024, focusing on those with high-return potential. Bhatnagar discusses various investment tools, emphasizing that the choice of asset class depends on your investment goal’s time horizon and purpose.
Equities:
At the top of the list are equities, which are excellent for building long-term wealth due to their potential to deliver returns that outpace inflation over time. If you prefer not to invest directly in equities, mutual funds are a great alternative. They offer diversification and are highly regulated, making them an ideal choice for investors looking to maximize returns over the long term.
National Pension System (NPS):
As the government continues to enhance the National Pension System (NPS) with additional features and benefits, this savings-cum-retirement scheme is gaining popularity. The NPS is a market-linked defined contribution scheme designed to help individuals save for retirement.
“NPS offers regular pension income, and tax benefits and provides flexibility in choosing asset allocation. However, maximum equity allocation in NPS can only be 75% and can be illiquid due to lock-in periods,” says Bhatnagar.
Also read: NPS Calculator: How much should you invest to get Rs 1 lakh pension per month?
Gold and Silver ETFs:
Gold and silver can serve as a hedge against inflation and provide a counterbalance to socio-economic risks. Gold and silver ETFs eliminate the need for physical storage, offering stability and ease of management while enhancing your portfolio.
Debt Funds/Bonds:
Debt funds and bonds offer lower risk compared to equities. Debt mutual funds can be an ideal choice if one was looking at wealth preservation as a goal.
Real Estate:
Real estate investment is a popular option for those seeking to own a physical asset. However, due to its illiquid nature and high capital requirements, many investors opt for alternative investments to achieve their financial goals.
Disclaimer: FinancialExpress.com does not endorse any specific investment instruments. Readers are encouraged to make their own informed decisions, as any losses incurred will be their sole responsibility. Reproducing this content without permission is prohibited.
2024-08-15T15:16:41Z dg43tfdfdgfd