With the FY 2018-19 almost halfway through, it is high time for people to make their investment declarations in order to save tax. However, the problem arises when you have no clue where to invest your cash in the current market scenario. While you may know about the various investment options but the number of possibilities can get pretty overwhelming.
This situation is called ‘paralysis by analysis’ in the investing world because one ends up spending more time in analysing the options rather than actually investing. Eventually, if you want to make sure you stave off from losing your extra cash, you must invest right away. A considerate amount of analysing helps you find the most suitable investment option for your goal.
Here are a few investment options available in the current market scenario –
Mutual funds, mainly equity mutual funds, are considered to be the best investment mode in India currently. With top funds generating nearly 20% CAGR over a 10-year period, means that each one lakh investment by a retail investor became more than six lakh, easily making mutual funds one of the best choices.
Valuation looks quite reasonable with the correction in the stock markets. Also, it is considered one of the easiest investments to handle in terms of investing, monitoring and redeeming. Regardless of the introduction of long-term capital gains tax, and equities remain the most tax-friendly investment option. As the economy grows and inflation moderates, the stock market could witness a strong growth in the corporate profitability in the new financial year.
With a correction in the time and price setup, a lot of the excesses in real estate has been cleared. Thinking ahead of time, this is the right time to start investing. Also, with RERA getting implemented, regulation and safety levels of investments have vastly improved.
Being a government-sponsored scheme, National Pension System is one of the safest options to invest. Furthermore, irrespective of the contribution NPS assures you a minimum amount of pension.
Stashing your excess cash in peer-to-peer lending platforms is another good idea for investments. Several companies’ help you loan money to individuals in small increments as if you are the bank yourself. The best part is, you get to earn a pretty decent rate of return.