What You Could Expect From Investment Options in 2020?
We know that hopes and expectations are running high as 2019 is wrapping up and 2020 is all prepared to take its place in calendars. The investment world too is looking forward to welcoming a positive change and investors must have already started to ponder over the best investment plans they could lay their hands on. The World Economic Situations And Prospects stated in their half-yearly update that in the fiscal year 2020, India's economy is supposed to grow by 7.1%. Now, isn't this the news we all want to hear? Considering the current financial climate, here are a few smart options which could make your money grow.
If you believe investments experts, then you should reserve 10% of the total investment portfolio for gold. It might be considered an obsolete option by some but it is expected to gain massive returns in 2020 buy hitting the mark of Rs. 41,000 - 41,500 per 10-gram by Diwali. It does become handy during volatile times and gains capital appreciation in the long-term.
Real Estate has always been investor's favourite but what has been luring appreciation in 2019 is farmland, owing to the consistent growth in city limits and ever expansive corporate growth around the outskirts of the town. This investment trend is going to garner attention from people in 2020 and is definitely, one of the wisest choices you could make today.
3. Unit Linked Insurance Plans
Tax-free withdrawal, low-cost availability, ease of switching of funds and structural liquidity and all these are just the tip of the iceberg when it comes to ULIP investment. A large number of insures have dropped premium allocation charges and are also paying back mortality charges at maturity. With ULIPs, you can balance the portfolio and this investment option is predicted to gain popularity in the coming year by yielding a surge of 200-250 bps.
4. Debt Mutual Funds
The Indian market of mutual fund investment is on it's best at the moment. The SIP inflow has crossed the mark of Rs 8000 crores for the 11th time this year. For those who don't believe in fixed deposits, lay their trust in mutual funds for a better yield. The risk factors also decrease with mutual funds when compared to keeping the money stagnating in the bank over a long period of time. With open-funded funds, the investor is always kept in the loop about the portfolio performance which helps them to make an informed decision about exiting at the current value.
5. Public Provident Fund
The favourite of the masses is still holding its position as one of the most loved investment options there is! The interest rate for the small saving scheme has seen a change in number even in the third quarter of the current financial year. This is a piece of good news for the investors as banks don’t hesitate to reduce the interest rate as soon as the Reserve Bank of India makes a policy change. As we enter the new year, a fixed deposit will make for a positive decision for investment purposes.