The new financial year 2019-20 is just around the corner. Many investors are still wondering how and where to invest the money or which investment avenues can yield good returns in 2019. The investment should be made depending upon the risk profile and time period to achieve financial goals. The investor should first assess the risk profile and identify financial goals to assess the best investment options for 2019
Some of the top investment options for 2019 are:
- Mutual Funds: Many individuals are investing in mutual funds without having any knowledge about mutual funds. These funds are recommended by peers or family members. Equity mutual funds (MFs) are considered as the flavor of the season keeping in mind the double-digit returns, which are generated by multi cap and small-cap mutual funds. With a variety of mutual funds, themes, mutual funds have become the most sought-after investment product for wealth creation. Through an investment in the mutual funds, the investor can reap benefits like stock legends. The only thing which is required to be successful while investing in MFs is a discipline of investment across the market cycles. The systematic investment plan (SIP) can be as little as INR 500 for anyone who wants to join the MF league.
- Stock Markets: After the steep correction in stock markets, valuations are high. With the introduction of long-term capital gains tax, equity still remains the best investment for inflation-adjusted returns. The inflation is also moderating and better economic growth can result in increased corporate profitability in 2019. The investor should spread a small amount in large cap, mid cap, and small cap so that the portfolio can be diversified, and hence design the portfolio as per the return expectations
- Real Estate: The real estate sector has undergone a severe correction since 2008 wherein many home buyers are still looking for possession of their flats. From long-term investing i.e. 15 years and more, real estate can be a good investment option. With many reforms being implemented like RERA and fly by night operators are moving away from the market, the sector is slowly but surely moving to back to the growth path again. Also, affordable housing and ready-to-move-in homes are the best options to invest in with a long-term view. Also, one can avail income tax benefits from the home loan every year till the loan is completely paid off.
- Public Provident Fund (PPF): PPF still remains one of the safest investment options for risk-averse individuals. The account can be opened in both banks and post office. Some banks also accept online payments for PPF, but you have to visit the branch if the account is operated via post office. The PPF has a tenure of 15 years, which can be extended by 5 years. The main advantage of the PPF is that one can avail deduction in Sec 80C and the investment is tax-free.