Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
3 Best Return On Investment Ideas

Return on investment can be controlled to a certain extent with 3 things. The SOR or speed of return, Leverage and Personal Cash control.

Speed of Return

One of the biggest ways a yearly compounding rate can be increased is to invest for faster turn around cycles. If you can find investments that actually have a one or two week cycle, that is much stronger than a yearly cycle.

Leverage

Available capital can be magnified using leverage. A $100 dollar account can be turned into a $1000 using borrowed money. If the yield is 10% then on $100 you would have made $10 but if you made a bigger purchase with borrowed money, the same yield is 10% of $1000 which equals $100 so in real terms you have made a 100% return.

Personal Cash Control

Having ready access to your cash puts you in a position to swoop on good opportunities when they present themselves. There is a plethora of opportunities that can be had, for people with the available funds. Anything from a small business in trouble whose assets are worth more than the asking price (which you can sell off for a profit) to under valued consumer goods which can be resold for a profit, or even dabbling in importing from China.

The best ways to increase your speed of return can have a dramatic impact on your annual compounding goals and with a little smart planning anybody can achieve compounding rates of 100% or even more each year. This is not difficult using the above three strategies.

From India , Coimbatore
Peer-to-peer lending
Fund rise - crowd funded real estate investing
Treasury inflation protected securities
Dividend paying stocks and ETF's
Bank bonuses
corporate bonds
Municipal bonds
Credit card rewards
Annuities
Money market funds
Preferred stocks

From India, Chennai
0 investment avenues Indians look at while savings for their financial goals.
1. Direct equity
Investing in stocks may not be everyone's cup of tea as it's a volatile asset class and there is no guarantee of returns. Further, not only is it difficult to pick the right stock, timing your entry and exit is also not easy. The only silver lining is that over long periods, equity has been able to deliver higher than inflation-adjusted returns compared to all other asset .
2. Equity mutual funds
Equity mutual funds predominantly invest in equity stocks. As per current Securities and Exchange Board of India (Sebi) Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65 percent of its assets in equities and equity-related instruments. An equity fund can be actively managed or passively managed.
3. Debt mutual funds
Debt funds are ideal for investors who want steady returns. They are are less volatile and, hence, less risky compared to equity funds. Debt mutual funds primarily invest in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial paper and other money market instruments. Currently, the 1-, 3-, 5-year market return is around 6.5 percent, 8 percent, and 7.5 percent, respectively.
4. National Pension System (NPS)
The National Pension System (NPS) is a long term retirement - focused investment product managed by the Pension Fund Regulatory and Development Authority (PFRDA). The minimum annual (April-March) contribution for an NPS Tier-1 account to remain active has been reduced from Rs 6,000 to Rs 1,000. It is a mix of equity, fixed deposits, corporate bonds, liquid funds and government funds, among others.
5. Public Provident Fund (PPF)
The Public Provident Fund (PPF) is one product a lot of people turn to. Since the PPF has a long tenure of 15 years, the impact of compounding of tax-free interest is huge, especially in the later years. Further, since the interest earned and the principal invested is backed by sovereign guarantee, it makes it a safe investment.
6. Bank fixed deposit (FD)
A bank fixed deposit (FD) is a safe choice for investing in India. Under the deposit insurance and credit guarantee corporation (DICGC) rules, each depositor in a bank is insured up to a maximum of Rs 1 lakh for both principal and interest amount. As per the need, one may opt for monthly, quarterly, half-yearly, yearly or cumulative interest option in them. The interest rate earned is added to one's income and is taxed as per one's income slab.
7. RBI Taxable Bonds
The government has replaced the erstwhile 8 percent Savings (Taxable) Bonds 2003 with the 7.75 per cent Savings (Taxable) Bonds. These bonds come with a tenure of 7 years. The bonds may be issued in demat form and credited to the Bond Ledger Account (BLA) of the investor and a Certificate of Holding is given to the investor as proof of investment.

From India,
Please Login To Add Reply






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™