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Updated by Joanna James on May 02, 2024
Headline for Top 5 investment ideas - A detailed guide.
Joanna James Joanna James
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Top 5 investment ideas - A detailed guide.

Some investors have an unrealistic idea on investing. They expect full returns in a short period of time with the invested capital. This is why you find people always looking to double or triple their capital in a few months time. Unfortunately, it's a well-known fact that high returns always have high risks. Expecting high returns with a low-risk strategy is pretty much a fantasy. Now, let's look into some investment ideas for a safe and profitable return.


Direct equity

Have you thought of trying your hand at investing stocks? It might not be for everyone as it's classed as a volatile investment. You need to pay close attention to the times you invest in a particular stock and your exiting strategy. Having said that, with longer periods of investment, the returns of investing in stock have been proven to be higher than other classes of assets. Just remember, that there is also a risk of losing a large amount of capital unless you opt for methods likes 'stop-loss method' to reduce the losses.


Real Estate

Many make the mistake of considering the house they live in as an investment. This isn't the case, a second home, however, would fit the bill of what you call an investment. The single most factor that will determine the value of your investment is the location of your property. This will, in turn, determine the rent you can get. You can expect two kinds of returns with this kind of investment. One is the capital appreciations and the other the rentals. In Phuket, property investment is carried out exceptionally. For instance, properties the likes of Infinite Luxury manage many sectors including the architecture, constructions, financial marketing and so forth.



Another popular investment choice is investing in gold. There are certain concerns when it comes to this investment plan, which includes the cost and the safety of the gold. Plus, there are the so-called 'making charges' which usually takes up about 6 to 14% of the price of the gold. In some cases, it can go up to 25%. So take special care to invest in gold with good 'making charges; that can be deemed as profitable. Moreover, you can always opt to buy gold coins too. Another option is to own what you call 'paper gold' that is controlled by gold ETFs. Here you will be buying and selling gold according to the prices and happens via NSE or BSE stock exchange.


Equity mutual funds

This type of investment plan invests only in equity stocks. This equity fund can be then managed via active methods or passive methods. In an active methods strategy, the return is primarily depended on a fund manager's skill to make returns. On the other hand, funds like an exchange-traded fund (ETFs) and index funds are managed passively and they tend to keep track of the underlying index.


Debt mutual funds

If you're looking for a well-balanced return then this is the one you need to look into. They are less of a risk. They generally tend to invest in fixed interests that generate securities like treasury bills, governments securities, corporate bonds and commercial papers.