With an ongoing pandemic all around the world, many institutional and young investors are looking for some investment advisory services to invest their money. The stock market has been mercurial these days due to a rising number of cases all around the world. The current pandemic has bought many businesses to a standstill. So many small investors are finding it difficult to invest their money in the stock market and finding out an alternative investment option. Apparently, there are alternate investment options like mutual funds, IPOs, billions that have yielded a great profit during the current pandemic. There are many other ways to earn smart money by investing in real estate, Corporate Bonds, and Bank FDs.
Let’s look into few investment alternatives in detail
Investments in IPOs as equities
The year started with an IPO, for example, Zomato, which was around 10k crore has given a return of more than three hundred percent. It isn’t the one that has yielded the highest profits this year but there are many lined up in the stock. Many institutional investors are seeking advice from a stock market advisor before investing in an IPO. The investors, high net worth individuals (HNIs), and the public can access an IPO’s first sale details of shares on the prospectus laid down by the company.
Investments in Gold Bonds
Precious metals have always gained outstanding returns since their discovery. Gold is not only a popular metal in India but it is procured all over the world. The government had introduced a sovereign gold bond scheme(SGB) in 2015, and since its launch, the bond has gained popularity among investors. The gold bond allows the investor to get a lower price than physical gold and gives a fixed interest rate, thus investors are tending more towards investing in SGB.
Investments in Corporate Bonds
Corporate Bond is always considered to be the safest investment instrument among others while these bonds have a fixed return but less as compared to other equity-based investments. These bonds sometimes have call provisions plans to allow early procurement if ecumenical interest rates change so efficaciously that the company deems it can do better by dispensing a new bond. Corporate bonds can earn up to 8 percent to 11 percent returns per annum.
Investments in Mutual Funds
Mutual funds are the most sought of investments after the stock market investment in India. Amongst mutual funds, equity mutual funds invest most of the assets in stock. Mutual funds offer inflation-beating returns over time. Mutual funds are of different types such as equity, debt, hybrid, solution-oriented schemes, and fund of fund schemes.
A good stock market advisor can help you to pick the right mutual fund to achieve your financial goals. Equity Mutual funds have the potential to yield up to 10 percent to 14 percent returns per annum. Mutual funds are said to be high-risk investments since they are linked to equity and debt markets. Mutual funds help you to get the benefit of rupee cost averaging as you are investing across all levels of the stock market.
Investments in unit-linked investments plans
Unit-linked investments plans(ULIP) have been a useful investment instrument during these pandemic times. ULIPs provide specific benefits that other investments do not.
The benefits of ULIPs are:
Tax efficiency: One can claim tax rebates on premium paid and benefits received during the policy term under Sec 80C and Sec 10(10D).
Liquidity: You can withdraw a part of invested money after the lock-in period is over.
Risk-return Mix: You can create your mix or invest in individual equity, debt, or balanced funds.
ULIPs main advantage is goal protection which not only assists your family on your untimely death but also helps you to achieve your financial goals.
Though the On-Going pandemic has created a fearsome environment among people, it has also provided a great opportunity for investment as the stock market started gaining momentum when the countries started to unlock. Though stocks, IPOs, and bullions are gaining high returns there are many other low profile investments that have made fortunes during the pandemic. Banks FDs, Mutual funds, and corporate bonds are good investment options. One can seek the help of an online investment broker before investing as it would give an edge to his investment plans. An individual need to create a good investment portfolio as it opens up many opportunities for investments in the financial world.
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