Top Investment Options For High Returns In 2024

The investment landscape in 2024 offers many opportunities for individuals to grow their wealth. Whether you're aiming for short-term gains or long-term financial security, strategically diversifying your portfolio is the key to finding the best investment plan.

The stock market, known for its volatility, often sees investors withdrawing their money from what they perceive as 'unstable investments' during market downturns. This article explores both traditional and unconventional investment options that have the potential for high returns in 2024. We'll examine various asset classes and strategies to help you make informed decisions about where to allocate your funds for optimal growth.

What Is An Investment Medium?

An investment medium is a financial vehicle through which individuals can invest their money with the goal of generating returns. These mediums encompass a wide range of options, including stocks, bonds, mutual funds, alternative investments, real estate, commodities (such as gold), and government-sponsored schemes like pension plans.

Each investment medium acts as a platform for investors to grow their wealth and work towards specific financial objectives. The choice of medium often depends on factors such as risk tolerance, investment options available, and financial goals. This guide will explore the top investment options worth considering in the current market.

Top 10 Investment Mediums To Bet On In India In 2024

1. LeaseX

This emerging investment option in India involves investing in an asset that can generate income when leased. Some companies like Grip Invest offer online, hassle-free leasing, enhancing the investment experience.

Returns: With the right platform, investors can potentially earn significant returns with a 15%+ IRR. 

Risk Factor: This medium has a low to moderate risk depending on the deal’s credit rating. It is generally less risky than stock markets due to its non-market-linked nature.

2. Equity Market

This traditional investment avenue allows individuals to invest in listed companies directly through stock exchanges (e.g., NSE, BSE) or via equity mutual funds managed by professional fund managers. For those seeking the best way to invest the money in potentially high-yield assets, the equity market remains a top investment option.

Returns: The market's bull phase may garner high returns. Conversely, significant losses are possible in bear markets.

Risk Factor: This platform is risky due to its susceptibility to unpredictable and volatile market forces.

3. Debt Mutual Funds

These funds are invested in government and private debt securities, ensuring a stable and risk-free return on investment without being influenced by market forces.

Returns: They are less volatile and can yield a maximum return of up to 9-11% in 3 years.

Risk Factor: These mutual funds carry a low to medium risk and are suitable for investors with a low-risk appetite.

4. Corporate Bonds

Corporate bonds are debt instruments companies issue to access additional capital for expansion and operations. Corporate bonds are one of the top investment options among investors looking for higher returns than fixed deposits (FDs) through periodic (monthly/quarterly/annual) interest payments. 

They offer periodic interest payments and have shown strong performance in India over the past 30 years, especially investment-grade bonds (rated BBB or higher). 

Returns: They typically yield an interest rate of 9-12%, making them a better investment plan for those seeking reliable returns.

Risk: Lower risk than stocks but higher than government bonds. Risk varies based on the issuing company's creditworthiness

5. InvoiceX

InvoiceX, offered by Grip Invest, is a top investment option in a credit-rated, diversified form of invoice discounting. It allows companies to borrow against their outstanding invoices. This fixed-income instrument operates under an established RBI framework, providing investors with regular interest payouts and return of principal at maturity. Reputed agencies like India Ratings rate this instrument, making it a good investment option for those seeking stable returns.

Returns: It provides hefty returns of up to 13% IRR, making it a better investment plan for those looking for fixed-income instruments.

Risk: This medium has a low to moderate risk depending upon the credit rating of the deal. It is less risky than the stock market as it is non-market linked.

Read more on Invoice Discounting: What Is It And How Does It Work?

6.  Real Estate

Real estate investment involves investing in land and property. It's a relatively stable income source as land values typically increase, keeping pace with inflation. However, investing in real estate requires significant capital and due diligence. Fractional commercial real estate (CRE) has emerged as a convenient alternative for investors seeking high-yielding fixed-income investments without the need for large capital outlays.

Read more on Fractional Investment: A New Era Of Accessible Investments.

Returns: The returns increase as the value of fixed assets like land appreciates, except in extreme circumstances such as war or natural disasters.

Risk Factor: While risks are generally lower than the stock market, investors may face liquidity, market, and interest rate risks.

7. Fixed Deposit

Fixed Deposit (FD) is one of India's most popular investment mediums, particularly favoured by those with a low-risk capability. It offers a fixed interest rate, making it suitable for retirees or those seeking a stable passive income. Modern options also include online FDs and high-yield corporate FDs, providing more flexibility and potentially higher returns. FD is one of the best investment plans for conservative investors.

Returns:  FD rates fluctuate based on the repo rate. Currently, they offer approximately 6-7% returns, with some corporate FDs offering slightly higher rates.

Risk Factor: FDs are considered a low-risk investment avenue, especially those offered by established banks and financial institutions.

8. Gold

Investing in gold is considered a safe haven as the demand for this asset increases when the stock market goes down. Gold has an appreciating value and remains one of the most popular investment mediums in the country. 

Modern gold investment options include online gold investments, offering returns similar to physical gold without storage concerns, and Sovereign Gold Bonds (SGBs), which provide an additional 2.5% tax-free interest per annum on top of gold price appreciation.

Returns: While not fixed, gold has historically yielded an 11.2% CAGR over the past 20 years. Returns can vary based on global economic conditions and market sentiment.

Risk Factor: It carries relatively less risk than other investment mediums, but global economic factors and currency fluctuations can influence its value.

9. Tax-Free Bonds

These bonds are particularly beneficial for high-income individuals. They offer better returns compared to fixed deposits and taxable bonds, especially after considering tax implications. Tax-free bonds are typically issued by government entities for infrastructure development.

Returns: The interest rate generally ranges from 5.50% to 6.50%.

Risk Factor: The risk factor is relatively low in this avenue.

10. National Pension Scheme (NPS)

NPS is a government-sponsored retirement savings scheme open to all citizens. It allows regular contributions and offers a combination of lump-sum withdrawal and annuity payments upon retirement. The scheme provides flexibility in investment choices and tax benefits.

Read more on National Pension Scheme: Ultimate Guide For Better Retirement Planning.

Returns: The average interest rate is approximately 8-9% for five years, and the risk is very low due to government sponsorship and regulatory oversight.

Risk Factor: It has a lock-in period and allows only limited premature withdrawals.

Conclusion

In 2024, the investment landscape offers a variety of opportunities, catering to various risk appetites and financial goals. From traditional mediums like the equity market, fixed deposits, and real estate to more innovative options like LeaseX and InvoiceX platforms, investors have access to some of the top investment options in India. 

Understanding and selecting the right investment medium is important for attaining your financial objectives. Whether you're looking for stable returns or a good investment option for diversifying your portfolio, the key lies in strategic decision-making and staying informed about market changes. Choose your investment option according to your needs. Whether you prioritise stability, high returns, or tax benefits, a suitable investment medium awaits you!

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Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in

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