The market appears to be improving, with lease activity picking up in the top seven cities in 2021. Many offices already have opened, and many more are expected to start soon. As a result, this is an excellent moment to invest in commercial real estate.
5 Stable & Less Volatile Investment Opportunities For 50L Capital in India
An individual's risk profile must be matched with the risks associated with the investment product before participating in any of the investment options outlined here. With a minimum investment of 50 lakh rupees, here are five less volatile and more stable investing possibilities in India.
We all want fast pleasure in today’s world. Even though patience and discipline may provide superior results, we want to achieve all of our life objectives as quickly as possible. This is also true for investments. We aim to make the most money in the quickest amount of time. As a consequence, we are constantly on the lookout for the greatest investment ideas that have the potential to double or triple our money.
While certain investment programs may assist you in increasing your money, discovering such investment items may be difficult. Furthermore, they may take longer than expected to get the intended outcomes. As a result, if you want to grow your money successfully, you must match accessible new investments to your investment horizon and risk tolerance.
Divide your financial goals into three categories to assist you to determine the best investing approaches for your portfolio: long-term, medium-term, and short-term. This will give you an indication of how much time you have available to complete the assignment. Following that, you may select from a variety of alternatives based on your risk tolerance.
This article will look at some of the most prevalent long-term, medium-term, and short-term investing possibilities in India. More importantly, we will teach you how to combine several investment options to create the best investment plan for you.
Long-Term Investment Plans
Long-term goals are those you aim to achieve in the next 7-10 years. As a result, when searching for the best long-term investment strategies, you may opt for solutions that are volatile but have the potential to generate significant returns over time.
That being said, before settling on an investment plan, you must choose how much volatility you are ready to endure. Let’s look at some of the investment options that can help you reach your long-term investment objectives, as well as the risks and benefits they can deliver.
Commercial real estate investment
Commercial Real Estate is a property that serves as a workspace rather than a residence. How to Get Started in Commercial Real Estate.
When the present equity markets are inflated, people tend to believe that the good times would last forever. Market cycles, on the other hand, exist in all markets. Because of these factors, it is an excellent moment to invest in Private Commercial Real Estate.
With India’s commercial real estate market expanding rapidly, now is an excellent moment to invest in this asset class. Commercial real estate investments have been growing for a long time. Commercial structures are more likely to be funded by lenders since they are less risky than residential structures, and there is a growing demand from company owners seeking office space or warehouse facilities.
In terms of rental returns, commercial real estate is more profitable. Commercial property investors may expect to earn 8-10%, whilst residential property investors can expect to earn just 2-3%. A steady long-term holding is the ideal Commercial Real Estate investment in a highly sought-after neighborhood.
Since ancient times, gold has been a symbol of riches. Even now, it retains its luster as an investment alternative that can outperform inflation. Physical gold has traditionally been the most popular way to get precious metal. However, it is subject to restrictions such as additive manufacturing or design expenses, as well as storage fees. To circumvent these restrictions, you can purchase gold using mutual funds and exchange-traded funds (ETFs). In this piece, we’ll take a look at several gold investment prospects in India. Read it to see which option is best for you. In terms of long-term returns, gold has generally not provided the same high returns as stocks. Nonetheless, during times of crisis, the price of gold tends to climb as investors seek safe-haven assets. As a result, they are an excellent tool to hedge against inflation or equity market risk.
Medium-Term Investment Goals
Medium-term goals are set over the next 3-5 years. Medium-term goals include saving for a wedding, a down payment on a house, home upgrades, and other long-term desires. For such medium-term financial goals, you’ll need investing options that can outperform inflation while remaining relatively stable. Here are some investing ideas to help you meet your medium-term financial objectives.
National Savings Certificates (NSC)
The National Savings Certificate (NSC) is a government-backed post-office savings instrument. It functions similarly to a 5-year fixed-income investment. As a result, your NSC savings will mature in 5 years and you will receive 6.8 percent annual interest. However, the total amount is only due upon maturity.
So, if you have a 5-year objective in mind, NSC is one of the safer investing alternatives. However, it has constraints such as a 5-year lock-in period and lower returns when compared to Debt Funds or Hybrid Funds.
Postal Service Time Deposit
Post offices, like banks, provide FDs. These investment choices, known as Post Office Time Deposits, allow you to deposit your money for short-to-medium periods. Post Office Time Deposits have the benefit of providing higher returns than banks. And this is without any added risk because these programs are supported by the Indian government.
Short-Term Investment Strategies
Two critical factors must be addressed while looking for the finest short-term investing strategies. To begin, you must reduce the risk of the money invested. Second, your investments should be easily accessible. Let’s have a look at the investing possibilities that can help us achieve these two goals.
Bank Fixed Deposits (FDs)
This is one of India’s most popular investment options since it provides guaranteed profits. FDs work straightforwardly. You deposit your funds in a bank, and the bank promises you a certain return on your initial investment at the end of the term.
While fixed-income investments are among the safest investment options available, they do have some substantial downsides. Post-tax profits on FDs seldom surpass inflation. This means that if you invest in fixed-income instruments, you are effectively getting negative returns while gradually depleting your cash. Furthermore, FDs charge a penalty if you remove your money before they reach maturity. As a result, the liquidity of FDs is also a key restriction.
Since there are so many investment products available, there is no one optimum investing strategy that applies to all investors. Each investor is unique due to their varied needs and risk profiles. As a result, you must choose the appropriate investment strategy for you based on your objectives and the level of risk you are willing to accept.
Assetmonk is an online tool that assists you in organizing your investments in Indian cities. Invest in the high-yielding properties available in our Growth, Growth Plus, and Yield asset categories. By investing in modest ticket sizes through fractional ownership, you may earn a consistent passive income. Visit Assetmonk for more information.
Stable & Less Volatile Investment Opportunities For 50L Capital in India FAQ'S:
It is recommended that you invest in real estate when the market is volatile as it is much safer than other forms of investment. It is also recommended that you invest in real estate through fractional ownership opportunities such as those provided by Assetmonk to keep your risk low and earning higher.
Keep in mind that downturns are normal and usually short-lived. Be at ease with your investments and avoid attempting to time the market. Even if the market is turbulent, invest regularly. Take risks and think about having a hands-off attitude, among other methods for investors to utilize in highly competitive and turbulent markets.
Passive and Active Techniques, Growth Investing, Value Investing, Income Investing, Dividend Growth Investing, Contrarian Investing, Indexing, and other investing techniques are some that an investor should use while investing for secure and higher returns.