Where should you invest your money in 2017?Sonal Mishra
With Brexit, demonetisation, and Donald Trump’s victory, 2016 has left us all feeling a little uncertain. The biggest question we all have is, what next? It would be easy to understand if most of you would like to stay out the financial muddle and stack all your money in the bank. While this could be an easy and safe option to begin with, it’s not how we multiply our hard-earned cash to suit our lifestyle and aspirations, is it?
Hence, we did some research and figured we could lend you some pointers to survive until the government figures out what their game plan is.
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If you don’t have any urgent investment requirements, then just wait and observe the market. This is a roller coaster that could be avoided. However, if you must invest your hard-earned cash, here what you need to know before you put out your money into the economy:
Say yes to real estate
Even though the market scenario might seem very dull and calm post-demonetisation, it is now set to grow leaps and bounds, and now is the best time for you to test the waters and wet those feet with some sensible investments. Given the statistics put out by the Urban Land Institute in their report on Emerging Trends in Real Estate Asia Pacific for 2017, Bengaluru and Mumbai have been ranked as top cities for prospects in terms of both real estate investment and development.
Say no to gold
As much as we love bling, this year is a big no for gold. 2016 was a roller coaster ride for Gold, and as per analysts, 2017 too doesn't look good for the shiny stuff either. Also, given the gold trend of thr last five years, this could just be the beginning of a longer bear market. Apart from this, demonetisation has directly affected this market and even though international markets are claiming a comeback later this year, you don’t want to risk investing into something that could potentially go downhill on value. So hold back on the gold and be very careful what you invest in.
Even though the interest rate for fixed deposits is rumoured to go down this year, it is still the safest and wisest option available in the market today. This allows you to put some money aside, making it untouchable while you earn a guaranteed minimum return along with the possibility of an increased return rate based on the market. This is what we call a no-brainer.
Some of the wisest people around will always suggest that the best investment option available today is the mutual fund. They not only provide higher returns compared to deposits but also have some great additional tax benefits. But this will require some effort. Sit down with your banker and let them understand your requirements while you figure out which is the option that best suits you. Like the advertisements say, “Don’t forget to read the offer document carefully before investing.”
Haven’t insured your life yet? Always know that you are your most precious cargo. Take advantage of all your money being accounted for in the bank and go ahead and invest in some insurance policies and schemes. These are short term goals you can set for yourself with long term benefits. In simple words, having a life insurance is almost like an unlimited tax-free savings account because most part of the financial gain is tax-sheltered and there are no limitations to contributions.
No matter how big or small your investment amount is, you are always going to be on the right path to securing your future with the correct investments. Make sure you find one that fits your requirements and available cash flow perfectly, and remember to not out all your eggs in one basket. In the end, it is sheer luck!