Best investment option?

Which is the best available INVESTMENT Option available in India........out of Fixed Deposits, Mutual Funds, Real Estate, Gold, Insurance, Stock Market, Post Office, NSC

It's great to see you ask a very relevant question, considering our current macro-economic situation! Inflation, having shot up dramatically ensures that whatever savings we may have in FDs, Post Office MIS deposits, NSCs or other debt instruments are not going to be enough to ensure a secure financial future!. So what are the alternatives?

1. Gold - Usually in the Indian family, Gold is always accumulated through gifts received, purchased at festivals like Diwali, Akshaya Tritiya etc. So some portion of your portfolio ( if you are not married, someday when you do, your wife will come and complement that part of your portfolio:-)), already has a good Gold component. I would advise not to add to that, because at best, Gold is only a hedge against inflation, it keeps pace with inflation, it doesn't beat it by a handsome margin!
And to multiply your money, you definitely need to beat inflation! So we need better options!

2. Real Estate - This is a much better bet and over the longer term probably the best bet, after equities. And if you are lucky to get into an area that later has much larger commercial implications, (such as near an International airport, say), you can even hit a goldmine and better the long term equity market rates

3. Equities/Mutual Funds - For the long term, there is no better trusted friend than investing in select equities to handsomely beat inflation. The best part is in India, the long term returns are tax free. Of course you need to do the homework to invest with only funds that you don't need for say the nest 3-5 years at the least, stay invested in the best companies and not go after latest fads (like Real estate companies etc which can have dramatic change in fortunes with rising interest rates and inflation). Companies like ITC, HDFC, HUL, Ranbaxy, CIpla, Infosys, Satyam have given over 30-50% compounded anual returns over the last 15 years. Read about them here at the excellent Wealth Creation studies compiled by Motilal Oswal at http://www.motilaloswal.com/Retail/RetailContents.aspx?ReportID=DE09E872-F1C9-44A5-A990-0E11F61CBE6B

Similarly there are some great 5-star rated MFs like HDFC Taxsaver, Reliance Growth, Magnum Contra, HDFC Prudence which have given over 20-40% compounded annual returns over the last 10-15 years! Read about the top rated funds at http://www.valueresearchonline.com/toprated.asp
Click on a fund name, read its Analysis, check its snapshot, performance track, etc.

But before you do all that, I will urge you to first consider this excellent article on the power of compounding at http://www.valueresearchonline.com/story/h2_storyView.asp?str=4007

Super tax saver plan

Details:
http://www.freewebs.com/insuranceavenues/oursolutions.htm

You can find my contact no. on the same site.

FD - not relevant in current scenario - inflation higher than FD return, so you are effectively losing money.

MF - definitely better, linked to share market and therefore has potential for higher return. is risky too because returns not guaranteed. but best of the lot.

real estate - too much hyped. will not be able to match grwth in MF and share market for next 4-5 years.

gold - another good bet. invest at the time when oil price cross $150 upto $170.

insurance - bull. do not think of it as investment. charge hefty 20-30% as service fee and give you a small return. not at all good compared to MF or gold.

stock market - best if you know where to invest. dont go for small cap companies, large cap companies or good mid cap that have potential to grow big in coming years. try cairn energy (not a reco, but an advise). too risky though, but offers the best return always (atleast in the last 30 years).

post office - read: FD. same.

NSC: read FD. same. not worth it in inflationary scenario of 11%+

this depends on client.......and personal goals.'' also how much money you have liquid! say $500 or more stocks is key! 5,000k are more fixed deposits! 50K OR MORE GOLD/REALESTATE! LET ME KNOW i can help ...iam a ceo/cfp. relloblue@hotmail.com free info .

Green Energy is the future! but gold is good if you live in the US

Equities are still a good option. Many valuable stocks are available now for cheaper prices. You can pick right stocks now which will earn you the greatest returns

SIP in Mutual Funds - Systematic Investment Plan

Buy Gold coins coz gold rate will never come down.....!!!! so keep on buying gold coins.... even i am also doing the same.... it is the best & safe way of investment.... Just think...

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