Best Investment Plan for Maximum Returns

Safeguarding your financial future has become an extremely important task in today's unstable economic environment. It should be one of the top priorities for every individual. Investing and growing your savings is a crucial part of this process, and everyone should begin at an early age. Investing wisely can pave the way to financial security and wealth accumulation. However, navigating the complex world of investments often leaves many individuals confused. This wealth accumulation could help you attain those goals which you can only dream of with your current salaried income and fulfil all the needs and desires of your family.

A key part of this wealth accumulation is your risk-taking capability. As an individual investor, you need to be confident and choose your investment options wisely if you want maximum returns from your savings. We'll explore the best investment options, weighing their risks and rewards to help you make an informed decision which will turn your savings into a treasure.

Why Pursue High-Return Investment Plans?

As an investor, whether novice or experienced, you might wonder why you should consider investment plans that promise higher returns, especially when they often come with increased risk. As an individual investor, you need to carefully assess the risks involved when investing your hard-earned money. Let’s understand why we should opt for investment plans with high returns.

First of all, High-return investments can significantly accelerate wealth building. Over time, even a small increase in your rate of return can lead to substantial differences in your overall wealth. For example, as per financial experts, investment in stocks at the right time could yield an annualised return of 20%.

Secondly, high-return investment beats the Inflation. Inflation is a hurdle for investors that erodes your purchasing power and the value of money over time. High-return investments help ensure your wealth grows faster than inflation, preserving and increasing your real wealth.

Thirdly, these high-return investments balance your lower-yield investment, bring a lot of diversity, and boost your portfolio performance. This offsets your low-yield investments, making your portfolio stable and highly productive.

Investment Plans for Maximum Returns

Stocks

Stocks represent ownership shares in companies and, over the years, have delivered significant long-term returns in India. When you invest in stocks, you become a partial owner of a company, potentially benefiting from its growth through capital appreciation and dividends. Investing in stocks can generate very high returns, but you should invest after carefully examining each stock due to the risk susceptibility.

The BSE Sensex, India's benchmark index, illustrates the power of stock investments. According to The Economic Times, the BSE Sensex has compounded at a very profitable rate of 15.85% in the last 45 years. This means a ₹10,000 investment in 1979 would have grown to an astounding ₹8.48 crore by 2018. One should also keep in mind that stocks can also be volatile in the short run and can even affect your investments, so every stock should be carefully analysed and sold at the right time.

To maximise returns while managing risk, diversify across various sectors. Mix growth stocks from sectors like technology with stable value stocks from industries such as FMCG would surely generate significant returns on your investment.

Equity Mutual Funds

If you think investing in just a few stocks on your own is confusing and risky, then an equity mutual fund could be the option for you. Equity Mutual funds invest in a diverse pool of equity companies through a single investment, which functions similarly to a basket of loans. They concentrate on equity instruments and make investments in stocks and company shares, in contrast to debt mutual funds. If you invest in these funds for an extended length of time, they will provide an extremely high interest rate.

Equity funds have the potential to grow significantly more since they are invested in the stock market, as opposed to traditional investment options, which are similar to keeping your money in a safe with a fixed interest rate. Top large-cap equities mutual funds in India, according to CRISIL, have an annual return of about 11%–14% since their launch. A few funds, such as the Mirae Asset Great Consumer Fund Regular-Growth Returns, can potentially yield returns on your investment of up to 20%. They do extensive company research and are frequently able to identify profitable investment possibilities that regular investors would overlook.

Equity Mutual funds have several benefits. You can start your investments with a low amount by investing through a monthly SIP. It helps you invest in a diversified portfolio of assets, making it less riskier and even generating significant returns.

Real Estate

Real estate has traditionally been known as a safe, secure, and high-value investment since the idea of property as a right came to be conceived. Unlike the other investment plans for high returns in this list, real estate has much more to offer than just high returns. Land, being a limited resource with ever-growing demand, has been a hedge against inflation.

Besides appreciation in the value of the asset, real estate also offers regular income in the form of rental yield. It is one of the most promising alternatives to traditional market-based instruments like stocks and bonds and is largely unaffected by short-term market fluctuations. However, the return from a real estate property depends on a large number of factors such as location, demand, and commercial value of the property.

With the advent of technology-driven investment platforms, there are several new ways to invest in real estate. High value commercial real state investments, which have traditionally been accessible to high-net-worth individuals and institutions are now affordable to the average investor in the form of fractional ownership, REITs, etc.

Exchange Traded Funds

Exchange-traded funds (ETFs) are investment vehicles that offer a simple way to diversify your portfolio and potentially generate significant returns. These funds trade on stock exchanges, just like individual stocks, making them easy to buy and sell. Instead of investing in a single fund, it helps diversify your holdings. ETFs give your portfolio the flexibility of stocks with the much-needed diversity. ETFs are low-cost and liquid and even have advantageous tax benefits if you hold an ETF for over three years.

For novice investors, there are a number of high-return ETFs available, such as BANKBEES, KOTAKNIFTY, NIFTYBEES, etc. There are some ETFs like CPSE ETF and NIPPON ETF that generate a one-year return of around 115%-82% and a three-year return of 53%-43%. High-return ETFs are often risky, but to balance your portfolio, you can invest in some low-risk ETFs also that only invest in the top  NIFTY companies.

This demonstrates the great reliability and substantial return on investment that ETFs generate.  In comparison to other long-term investments, they are also far safer. It provides you with ideal market exposure and aids in diversifying your investments in gold, bonds, and stocks, among other assets. Remember to consider ETFs as a tactical stepping stone in your investment journey that will help you attain maximum returns on your investment.

Conclusion

In conclusion, making the best investment plan for maximum returns requires a well-thought-out approach that is tailored to meet your financial goals and risk tolerance. While high-return investments offer exciting and lucrative returns, they often come with increased risk. Everyone has different risk capabilities, and hence, you need to choose your investment plan accordingly. A balanced strategy might include a mix of traditional options like stocks and mutual funds, alongside innovative choices such as ETFs and fractional real estate.

Remember, diversification is key to managing risk while pursuing high returns. Don't put all your eggs in one basket, no matter how promising it seems. Stay informed about market trends and economic factors that could impact your investments. Ultimately, you should look to invest in the long run and consider plans that align with your financial objectives and risk tolerance. Start your investment journey today with our assistance and help yourself achieve a secure and prosperous financial future.