Skip to main content

Various Investment avenues

The value of an investment instrument changes with time, macroeconomic developments and market movements. You need to rebalance your portfolio from time to time based on these factors.


   There are various investment instruments available in the market. However, the value of these investment instruments changes with time and macroeconomic conditions. Also, it changes with investors' individual requirements.


   These are some investment instruments that have a promising outlook and investors can look at increasing their allocations or adding them to their investment portfolio:

Equity    

The valuations in the stock markets are no longer cheap. However, analysts believe the markets have the potential to rise further due to continued inflows from foreign institutional investors (FIIs). Investors looking at taking fresh positions in the stock markets should stick to blue-chip (or index) stocks with strong fundamentals and positively placed from a macroeconomic perspective.


   Usually, large-cap stocks with sound fundamentals lead the rallies in the markets and suffer relatively lesser during the correction phases. Investors with an existing equity portfolio should review its performance and make the necessary adjustments. It is advisable for investors who do not have a deep understanding of the markets to look at investing through equity mutual funds.

Gold    

Investments in gold have given quite attractive returns over the last few quarters. Speculation and the slowdown in the global developed markets have been the prime drivers of gold prices in the last few years. Historically, it has been seen that gold prices have an inverse relationship with the valuation of the US dollar in the international markets.


   Investors, especially the large institutional investors, have increased their allocations to gold due to the weakness in the US dollar. Further weakness is expected in the US dollar in the short term due to various actions expected by the Federal Reserve to further stimulate the US economy. Any further weakness in the US dollar may push gold prices to the next level.


   Those looking at investing in gold can buy gold bars or coins, or can buy units of gold exchange-traded funds (ETFs). Gold ETFs are very similar to mutual funds with an underlying asset being gold. Analysts believe gold prices may go through a correction after Diwali due to the absence of festival-related demand and that would be the right time to accumulate positions in gold and goldrelated instruments with a medium to long-term perspective.

Debt    

Debt instruments and debt-related savings schemes are good investment options for the risk-averse investors or those looking at parking their funds for a short term. Debt instruments are more attractive after the monetary policy tightening by the Reserve Bank of India (RBI) this year. Risk-averse investors with a medium to long-term investment horizon can look at investing in bank fixed deposits or company deposits floated by blue-chip companies.

Real estate    

Investing in property is another attractive option in the current market conditions. Property investments earn a regular income in the form of rent and also capital appreciation. Usually, investments in property are lowrisk with high returns. However, investments in property may not be easily liquidable.


   Also, since property is a high value investment, it is important for investors to conduct proper checks and investigations first.

Tax-saving instruments    

The first half of the current financial year is over and it's time to think about saving tax. This is especially so for investors who have not already planned tax. Taxes drain a significant portion of an individual's hard-earned money. Therefore, you should look at using all possible ways to save taxes (especially those in the higher tax bracket).


   You can choose from a variety of investment instruments that qualify for tax rebate such as PPF, National Savings Certificate and tax saving bonds.

 


Popular posts from this blog

ICICI Prudential Dynamic Plan Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call     Leave a missed Call on 94 8300 8300   Leave your comment with mail ID and we will ...

HDFC MF Monthly Income Plan - Short Term Plan

Objective To regular returns through investment primarily in Debt and Money Market Instruments. The secondary objective of the Scheme is to generate long-term capital appreciation by investing a portion of the Scheme's assets in equity and equity related instruments Option/Plan Growth Option,Quarterly Dividend Option,Monthly Dividend Option. The Dividend Option offers Dividend Payout and Reinvestment Facility. Exit Load (as a % of the Applicable NAV) In respect of each purchase / switch-in of Units upto and including Rs. 10 lakhs in value, an Exit Load of 0.50% is payable if Units are redeemed / switched-out within 6 months from the date of allotment. In respect of each purchase / switch-in of Units greater than Rs. 10 lakhs in value, an Exit Load of 0.25% is payable if Units are redeemed / switched-out within 3 months from the date of allotment. Minimum Application Amount For new investors : (Growth & Quarterly Dividend Option) – Rs.5000 and any amount thereafter under eac...

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...

Mutual Fund Review: Reliance Regular Savings Balanced

Reliance Regular Savings Balanced fund has shown great resilience during market crash After a shaky start, this fund has established itself as a strong contender in this space. In the past three years it has ridden the market well by not only delivering during the market run-ups but also displaying resilience during the crash. In 2008, it witnessed the second lowest fall among its category and last year it was amongst the top three performers with a return of 76 per cent (category average: 61%).   The poor underperformance in 2006 can well be credited to the low equity allocation of the fund, which stood at just over 10 per cent for only four months that year. Though the fund has the leeway to go up to 75 per cent in equity, it has never touched that limit. In fact, it has exceeded 70 per cent in just five months in its entire history. During the crash of 2008, the fund managers had no problem going right down to 54 per cent (equity exposure). Fund managers Omprakash Kukian and A...

Why credit history is critical?

Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now