Best Investment Options In India For 2019

India is emerging as the fastest growing economy in the world with its financial scenario changing expeditiously. The growth and vibrancy are visible in both the existing traditional financial firms as well as the new-age FinTech entities entering the market. It is a promising year ahead for the economy, and subsequently for the investors.

Fueled by innovation-driven approach, technical competency, and supportive regulations, the fintech industry is witnessing rapid growth in India. The fintech software market, which is about to touch US$ 2.4 billion by 2020, includes financial services that are made available on digital platforms too.

Today’s investors have a wide array of alternative credit models that are credible, innovative and attractive, and drive high returns. However, the risk involved and the returns are inversely proportional in digital-enabled investments as well. Better information about multiple investment options can help make wiser decisions on investments. Here is a list of four best investment choices that are considered as hot-trends in 2019 for you to choose from.

Peer-to-Peer Lending

Peer-to-Peer lending, fondly called P2P lending, has become a lucrative investment option for beginners and veteran investors alike in the last few years. In simple words, P2P is a debt-financing model that enables individuals to lend or borrow money through online lending platforms. Driven by advanced technological tools, this investment option opens an avenue for monthly cash returns from the very first month itself. Moreover, the minimum amount to start investing is as low as ₹5000 per loan.

The year 2018 was path-breaking for this new entrant in the financial lending industry. The Reserve Bank of India’s move to recognize and regulate the P2P lending industry has given the required push for it to flourish and the repercussions are to be witnessed in this year and further. Undoubtedly, it makes one of the best investment options for 2019. Given multiple factors like transparency, easy processing, security, and flexibility, it is an attractive choice for tech-savvy salaried-employees and young investors.

Estimating your potential returns in P2P investments is a click away. Check out RupeeCircle, an authorized marketplace for P2P lending. To mitigate risk, make sure you manage a diverse portfolio of borrowers.

Equity Investments

Due to its volatile nature, equity investments are not for everyone. However, it has been one of the favorite classes of assets for investors for long and is likely to remain the same in the coming year too. On a roundup of the previous year, small and mid-cap fund investors did not have much gain, but large-cap funds managed to give returns to the investors.

In 2019, the market is expected to remain volatile under the influence of global factors and general elections. It is wise to continue with your Systematic Investment Plans (SIPs), given volatility of the market.

Real Estate

For long-term investors, real estate continues to be a hot investment option. Unlike equity investments, real estate is tangible and less prone to market fluctuations. Also, it benefits investors in two ways—capital appreciation and rental returns. However, the properties may have to be held for a longer period to increase the returns.

Driven by factors like ever-increasing housing demand, disruption in the real estate business-model, evolution of co-working spaces, and market consolidation, the year ahead is expected to offer a promising market for real estate investors. However, the value and returns in real estate depend on various factors like location, demand, supply, inflation, geography, connectivity, and proximity to essential services.

Commodity Investments

Gold is the all-time favorite choice among commodity investors in India. The yellow metal’s rates have been moving up for many years now, thus making it the safest option to invest in. Post demonetization in India, the affinity to gold investments has risen and has been considered the safest. To avoid the making charges imposed on gold jewelry, investors can rely on gold coins or gold exchange-traded-funds (ETFs), also known as paper gold.

The Bottom-line

A new year is finally upon us to make new investment decisions and take the path to financial wellness. While traditional investment options tend to be brighter this year, the alternative finance and investment revolution is expected to have exponential growth. As an investor, information is your power to making wise decisions and your strategizing investments.