InvestorQ : Which investment among shares, real estate, gold, insurance, mutual funds, Fixed Deposit, Recurring Deposit, PPF or company deposit, etc can give more profits?
Tanu Shukla made post

Which investment among shares, real estate, gold, insurance, mutual funds, Fixed Deposit, Recurring Deposit, PPF or company deposit, etc can give more profits?

Nishita Gala answered.
12 months ago
First thing as an investor you should know that if you’re willing to get higher profits, make sure you’re willing to take the risk as well. However, options that have the least risk and maximum benefits are the best.

If I talk about Real estate, it is basically good when you have a good amount of money with you and you’re willing to take the risks for an uncertain period. These days one can get properties at good prices as the market is in recession, the prices are not so hiked. But, you don’t know how well does your investment rise in the given period.

Next, we have investments in gold bars, gold ornaments, etc. First of all investments in gold bars are better any day, rather than putting money in ornaments. However gold prices are fluctuating, so if you buy today and the price increases that is a positive thing, and if the price falls, it turns out negative. But in a substantial period of time, your investment will definitely increase. However, the time it might take could be higher than expected.

Insurance means to make you secured for the future. However, there are several insurances available in the market that helps you through your retirement and act as a pension scheme or fulfill other purposes. However, returns on insurance are not very attractive in case you’re getting the amount on maturity.

FD and RD these days are offering interest rates of about 6.25% p.a. to 8% p.a., but the risk is very less.
Investment in Mutual funds is one profitable option, as on an average you can earn 8-18% return p.a., with the risk being the minimum as the portfolio is diversified. Mutual funds offer varieties to investors.
Investment in shares, on the other hand, could be profitable if one has great expertise in that field. Also, there’s more risk involved.

So, keeping all the factors in mind, I consider mutual funds and investments in shares as the most profitable. However, why stick to one type of investment? Diversifying your investment reduces risk to a great extent. This means investing some amount in Mutual funds, some amount in shares, some in gold. The amount which you need at some fixed period, the park that fixed amount in fixed deposits, as you will be sure of receiving at least that much. So, technically don’t go for just 1 option, rather explore investment options.

Niharika Kamble answered.
3 months ago

The recent pandemic is a “Black swan “event. Nobody could predict it and no one knows how to manage it. Given this situation, each person’s needs and priorities could differ, objectives could change. Thus, any significant allocation made before this event, may not be applicable in the current scenario.

So, you should make decisions based on your financial situation. This should be exclusive to you, your situation, and future objectives that may or may not have changed given the situation. Personally, I have not done so because I am a long-term investor and I expected to face some rough years through my investing journey.

Thus, I made provisions for it. For eg- I have an emergency fund that I can fall back on. And I expect the market situation to improve in the course of this year. But this is just my assumption, and I am ready to bear the consequences of this bet going wrong, But this may not be the case with everyone.