5 great alternatives to investing in gold
What was once considered to be a reliable long-term investment has now become a volatile financial entity. Gold prices have fallen by INR 7 per gram, and while this may sound like good news to those looking to buy gold, it certainly isn’t a time to rejoice for investors.
If market analysts are to be believed then these prices will further drop to INR 23000 per 10 grams by August 2015. Even if the prices do rise, it’s unlikely that they will rise as sharply as they fell. At the end of the day, you can no longer be sure of the returns that a gold investment may give you. So what sectors can be an adequate alternative for gold investments in India? Here are a few gold alternative investment examples that can give you amazing returns.
- Public Provident FundA PPF is largely accepted as one of the safest investment options available to salaried individuals. Offered at high interest rates of 8.75%, this is the best option for you if you fall into the upper tax brackets. With a PPF account you can save up to 11% on taxes even after you’ve maxed out your returns under 80C. You also have the freedom to invest any amount of money between INR 500 to INR 100000, and get guaranteed returns at the end of every fiscal year.
- Term Insurance Plans
As an investor, you’re looking for investment options which provide you with security for the future. Nothing meets this requirement like a term investment plan does. Apart from fulfilling its primary purpose as an insurance policy, it’s also one of the best tax saving investments available in the market. What’s the best part? It’s life insurance which doesn’t hold your money for life. Once the term duration is over, the insurance company returns your investment without charging you a single rupee.
- Mutual FundsFor those who want to strike a perfect balance between risk and returns, mutual fund investments are your best bets. If you’re looking for a good alternative investment for gold, a mutual fund drastically reduces your transaction costs, especially if you’re looking to diversify. Financial institutions like Bajaj Finserv let you apply for mutual funds online right from the comfort of your home. Their biggest advantage is that they let you offset the risks involved with a single type of investment by allowing you to spread your investment over high and low risk sectors.
- Fixed DepositsOne of the best money investment options in India are fixed deposits. With organisations like Bajaj Finserv offering high interest rates on FD, fixed deposits are one of the easiest ways to mint money. A major advantage of fixed deposits is that you can use them to quickly raise capital to make a new investment. If it’s a short term investment you’re looking for, there’s nothing quite like a fixed deposit.
- Real Estate – Lastly, lets not forget the ‘king of all investments’—real estate. Seasoned investors know that real estate is one of the best long term investments in the market. This is one sector which sees an exponential increase in its return on investment (ROI) with each passing year. If you’re looking for a quick and secure investment, then you can apply for a home loan online through the Bajaj Finserv website. In a matter of minutes, you can get your loan processed and approved, and seal the deal on a property which will give you incredible returns in a few years.