India has grown as one of the significant economies in the world having immense potential for long-term growth. Indian economy is developing at a faster pace and is brimming with investment opportunities.
Investment can be broadly divided into two– growth-oriented investments and fixed-income investments. A growth-oriented investment option aims at increasing the value of the capital over time, whereas a fixed-income investment option aims at providing a steady stream of income that can either be paid to the investors or re-invested while seeking to maintain the original value of the investment.
Let’s understand the different types of investment trends in India
Mutual fund Investment: Mutual funds are financial instruments that pool the money from various investors to invest in securities such as stocks (equities), bonds, money market instruments, etc. According to the risk profile, investment horizon, and financial goals, an investor can choose from different types of mutual funds available to them. Largely there are six types of mutual funds, namely growth or equity funds, liquid or money market funds, fixed-income or debt funds, hybrid or balanced funds, index funds, and tax-saving funds. Mutual funds help investors in achieving their financial goals, be it short-term or long-term.
Stocks: Also known as shares or equities, stocks are among the most popular growth-oriented investments. When you purchase a share, you become part-owner of a publicly-traded company and stand to gain a part of the profits. The risk-reward ratio with equity investments is often higher than most other forms of investment.
Bonds: Also known as fixed-income securities, a bond is a debt instrument that represents a loan given by an investor to a company or the government. When you buy a bond, you allow the bond issuer to issue you a fixed interest rate in exchange for using your capital.
Provident funds: Provident fund is a mandatory, government-sponsored retirement scheme that aims at providing employees with a lump sum payment when the employee resigns or during retirement.
Real estate Investment: The real estate sector holds huge prospects for several industries such as hospitality, retail, commercial housing, manufacturing, and much more. Investors have the option to invest in commercial or residential properties or even real estate mutual funds to earn significant returns on their investments. Timing is a crucial aspect when one considers investing in real estate. One should be mindful that real estate investments can be highly illiquid, i.e. it might get challenging to sell the property quickly in case of an urgent monetary requirement.
Each type of investment offers a varying level of risk-reward ratio. However, risk and returns shouldn’t be the only considerations that determine what types of investment products you choose.
But, in recent times, Kerala is also growing as a popular real estate investment point. However, amongst the many real estate investment hubs in Kerala, Calicut is probably the best right now. Landmark entertainment city in Kozhikode offers plenty of investment trends. Real estate in Kerala is becoming a great investment for both locals and NRIs. Investors often consider halal investing to be a sector of ethical or socially responsible investing. Halal investing encourages a disciplined investment process that promotes in-depth security research and monitoring. Long term investments in Calicut give you a chance to keep an eye on them and check out your options to maximize your returns. Best investment options in Calicut that ensure high returns, high appreciation, and safety of capital.