{"id":123,"date":"2020-01-09T10:27:07","date_gmt":"2020-01-09T10:27:07","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=123"},"modified":"2020-01-09T11:43:58","modified_gmt":"2020-01-09T11:43:58","slug":"want-to-invest-dont-know-where-which-investment-product-has-given-the-best-return-so-far","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/want-to-invest-dont-know-where-which-investment-product-has-given-the-best-return-so-far\/","title":{"rendered":"Want To Invest? – Don\u2019t Know Where? – Which Investment Product Has Given The Best Return So Far?"},"content":{"rendered":"
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Investment as a word has\nintrigued quite a lot of us. It helps to put our money into work and generate higher\nreturns over time allowing our funds to increase in value. There are plenty of\nus who want to invest in the market but hold them due to the fear and\nreservations, the major of those fears are titled towards the stock market. <\/p>\n\n\n\n

If you look at the investment scene,\nIndia and its people have directly or indirectly been part of the investment\nfor long. There are plenty of traditional options like fixed deposits, gold,\nreal estate and more where a user has vested their interest and been putting\ntheir funds into. These investment options have been around for long yet when\nit comes to returns they are well short of the stock market returns. This is\nwhere the conundrum lies; people have an inherent interest in the equity market\nbut are bogged down with the fears and myths. <\/p>\n\n\n\n

The major fears around the equity\nmarket are that they are riskier and you\u2019re more likely to lose out the money\nrather than gain from it. People often deem it to gambling and also describe the\nstock market as only for those who have a large pool of money, which is nothing\nbut a myth in itself. It is a well-accepted fact that even though the market is\ndynamic and ever-changing, the returns offered by equity is unmatched when it\ncomes to investing in India. The same is backed down by stats of which we\u2019ll\ndescribe further down below. Read along. <\/p>\n\n\n\n

Which Investment Product has given the Best Return so\nfar? <\/strong><\/h2>\n\n\n\n

Investment is vital for anyone who wants to put their savings into work and generate a larger corpus in the long run for their goals and needs. All of us tend to have short term and long term financial goals and the only way to achieve them is through managing and investing the money in a proper way where you get the best returns. We here take a look at the equity market and compare it with the other counterparts in the market to see if they are really the ones with the best returns so far. <\/p>\n\n\n\n

Investment into equities is about\nbuying shares of publicly listed companies. These shares are traded on the\nNational Stock Exchange (NSE) and Bombay Stock Exchange (BSE). We talked\nabout the traditional investment options like fixed deposits, gold, real estate\nand more above and how they are the ones that people opt for. The equity market\nhas a greater potential for returns in comparison to these but they are often\nput down due to the myths. <\/p>\n\n\n\n

Comparison <\/strong>of Equity Market Returns with other Investment Options<\/h3>\n\n\n\n

However, historically the returns from the equity market have been way better than any other investment option. They have offered a return of 14%-15% CAGR (Compound Annual Growth Rate) over the past 15 years<\/strong>. If you were to look closely into the equity returns over the last decade and more, there are plenty of Indian companies that have offered multifold returns over time and have been the talk of the town. These overwhelming multifold returns are not possible with other investment options like fixed deposits, bonds, mutual funds, and gold. <\/p>\n\n\n\n

When we talk of other investment options,\nthe major names in the Indian investment scene are fixed deposits, gold, and mutual\nfunds. We here look at the historical returns offered by all these options and\ncompare them to the one offered by the equity market. <\/p>\n\n\n\n

Fixed deposit started out as 8%-9% during 2010 <\/strong>but now has gone down a notch to 5%-7%<\/strong> in the present day.<\/strong> Putting this into context, the net returns after taking into consideration the inflation aspect of 3%-4% <\/strong>and taxation, it amounts to a mere 4%.<\/strong> Even though it is a risk-free investment, the returns seem very poor to opt for. <\/p>\n\n\n\n

 As for the mutual funds, historical stats\nsuggest that mutual funds have offered a\n10%-12% CAGR on an average<\/strong>. Although some of the high-risk mutual funds\nhave offered in the range of 16% CAGR\nreturns<\/strong>, they tend to go around in the average range for most of the time.\nThese tend to be better options than investment schemes like fixed deposit,\ngold, and other options but come up short of the equity market by quite a lot. <\/p>\n\n\n\n

Historically gold\nhas offered a CAGR return of 8% over the\nlast 20 years<\/strong>. This return ranks somewhat similar to the returns of the fixed\ndeposits but tanks completely when it comes to the range offered by direct\nequities. <\/p>\n\n\n\n

When you pit\nthe returns offered by equity to those of fixed deposits and others, the final\ncorpus at the end of the investment doesn\u2019t tend to be as fancier as you\u2019d want\nit for. Add the aspects of inflation and taxation, then the net returns seem\npretty poor for the aforementioned investment options in comparison to equity. <\/p>\n\n\n\n

Final Words<\/strong><\/p>\n\n\n\n

There are plenty of investment\noptions in the market offered with different levels of return and risk metrics.\nA person can select the best investment option based on their suitability.\nThere are plenty of factors that affect the investment and any individual\nwilling to invest would likely go through these choices like risk metrics,\nbudget and more before opting for one. <\/p>\n\n\n\n

Note: All information & data provided in this\narticle is for the educational purpose as well as to give general information\non the investment and wealth management, not to provide any professional advice\nor service. Views & opinions are not biased against the company and do not\naffect any official policy or any other agency, an organization within the\ncontent.<\/strong><\/p>\n

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Investment as a word has intrigued quite a lot of us. It helps to put our money into work and generate higher returns over time […] Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7],"tags":[18],"class_list":["post-123","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","category-investment","tag-equity-investment"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/123","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=123"}],"version-history":[{"count":2,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/123\/revisions"}],"predecessor-version":[{"id":126,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/123\/revisions\/126"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/127"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}