Numerous studies have shown that, over long periods of time, stocks generate investment returns that are superior to those from every other asset class. Stock returns arise from capital gains and dividends.
Do not mix insurance and investment: Yes, insurance is not an investment. When you invest your money somewhere, you expect something back. Not so with pure term insurance. If you die, your nominee gets something. If you live, no one gets anything. Now that may sound like a raw deal. But hey, that's what life insurance is all about! Ironically, life insurance is not about life, but about death.
Many individuals believe that the return of government schemes is not as high as the private saving schemes provide, but, it's not true. Government schemes offers a high return on investment with less risk or almost 0% risk.
Once you retire, you have big the challenge of man aging your finances in a smart and secure way; Please look at five such post retirement investments options in India which strike that perfect balance between risk and returns.
NRIs can invest in the Indian stock markets or equities of Indian Companies as per RBI norms. Since these Indians are not Resident Indians, they must approach an Authorized Dealer or a Bank that is authorized by the Reserve Bank of India to manage and route the investments
Buying and owning real estate is an investment strategy that can be both satisfying and lucrative. Unlike stock and bond investors, prospective real estate owners can use leverage to buy a property by paying a portion of the total cost upfront, then paying off the balance, plus interest, over time.
MUDRA Bank Loan
Mudra stands for Micro-Units Development and Refinance Agency Ltd. This organization has been established by the Government of India for development and refinancing activities relating to micro units. Simply with the vision of – ‘Funding the Unfunded’.
Small organizations, companies, startup entrepreneurs of micro-units in India face a lack of formal financial support in the starting or growing stage of their small businesses. Mudra bank loan initiative has been taken to provide low-cost funding for MFI (Micro Finance Institutes).
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Commercial Real Estate
Commercial real estate has emerged as a preferred investment destination for HNIs. The average yields offered by commercial real estate are higher than those offered by residential real estate. Returns can average around 6% to 8% depending on the micro market and could also touch 11% in some instances. Yield is calculated as dividing the annual rent by the market value of the property and multiplying the quotient by a hundred. So, if the value of the property is Rs 1 crore and the annual rent received is Rs 6 lakh, then the rental yield turns out to be 6%. Demand for Grade A office spaces have been picking up in prime locales.
Venture Capital Fund
Venture Capitalists are people who normally invest in start-ups purely from a return on investment mindset. They provide the fund in the early and growth-stage both. Venture capitalists look for a strong management team, a large potential market, and a unique product or service with a strong competitive advantage.