It is not easy gathering 1 Crore rupees for anyone. So, when you do have it, your first priority is to grow from there and not spend it all. The best way to do that is to reinvest the money in different sectors to get the most returns. Some of the methods you can use to make smart investments are as follows:
Safest Investment: FD (Fixed Deposit)
The best way to ensure a healthy return on static funds is to park them in FD with financial institutions. Companies such as Bajaj Finance offer as high as 8.10% FD interest rates ensuring a good monthly return. Using the FD calculator available on their website, you can calculate different variations of how much you want to invest, whether it should be cumulative or non-cumulative, etc. For instance, if you choose to take 10 lakhs from your 1 crore and put it in a cumulative fixed deposit with Bajaj Finance at 7.85% for 5 years, you get an interest of Rs. 76,000 on maturity. So, fluctuations of the market here, make no difference to the terms of a fixed deposit. For senior citizens, Bajaj offers an even higher FD Interest Rate at 8.45%, making it one of the most preferred fixed deposits for senior citizens.
Invest in Stocks
The stock market is always a good place to start with your investment portfolio. The 2018 market seems to be bullish through and through. This means the prices of stocks are going to keep soaring as they have the past year. However, long duration bullish behaviour on the market also signals an imminent correction, or in the worst case, a crash. In such conditions, it is best to invest in blue-chip stock instead of choosing new ventures, even though they are showing high potential right now. There are several funds that would be able to weather the storm such as Reliance, Aditya Birla, Tata, Infosys, etc. With these stocks, patience is key, so do not expect to make quick returns and get out.
Invest in Mutual Funds
Mutual funds are also dependent on the market and since it is a booming stock trend right now, mutual funds stand to gain profit. As mentioned above, there could be a correction happening within the next year, so be careful not to invest in too many small-cap and medium-cap stocks. Those get affected the most with market drops. A healthy combination of both stocks from companies that have been producing consistent results over the past year, are the safest bet in this category.
Property Is a Lucrative Option
As always, investing in real estate is a good option to park your money, and make returns from it year after year. Right now, the Indian government is prioritizing the development of several tier-2 cities. This means, investors buying up property in any such city will surely see an appreciating return rate over the next year. A quick google search will tell you the cities that are most likely to see a rise in property value due to government initiatives in 2018.
Buying a few residential properties in these cities will enable you to rent out space and make income while having the option to upsell. It is a profitable venture, especially now.
Invest in Commodities
Commodities are physical objects such as gold, oil, agricultural products, coffee, etc. Investing in them is sure to be a safe investment because they are always in demand. Any risk could be mitigated by simply waiting for the prices to rise again. Commodities trading is a thriving market with ample opportunities to build on your existing wealth.
These are just some ways to make sure you don’t stop at the 1 crore mark. There are endless options if one is truly determined to grow!
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