Where to Invest Money to Get Good Returns: Our Case Study

Bajaj Finance has seen an amazing return of over 44.1% in 15 years, as of Jan 2024. There are many short-term investments like savings accounts and mutual funds. We'll look at these options and their risks and benefits.

Our study focuses on short-term investments for quick returns. Equity Mutual Funds, for example, have shown great results. Small Cap funds have returned 24.49% over 5 years and 22.20% over 10 years, as of Jan 2024. It's important to choose wisely.

Key Takeaways

We will explore various investment options, including short-term investments, to help readers make informed decisions.

Investment options such as stocks, certificate of deposits, bonds, real estate, fixed deposits, mutual funds, PPF, NPS, ULIPs, and National Savings Certificate are available in India.

Short-term investments, such as savings accounts and liquid funds, can provide easy access to funds and relatively low risk.

Equity Mutual Funds have shown significant returns, with Small Cap funds showing the highest returns at 24.49% over 5 years and 22.20% over 10 years, as of Jan 2024.

Investing in NPS offers tax benefits, including a deduction of up to Rs 1.5 lakh under Section 80CCD(1) and an additional deduction of Rs 50,000 under Section 80CCD(1B).

ULIPs allow for a tax deduction under Section 80C up to Rs 1.5 lakh and have a minimum investment requirement typically starting at Rs 1,500 per month.

Introduction to Our Investment Case Study Methodology

Our investment case study looks closely at how we gather data and analyze it. We look at market trends and conditions to make smart investment choices. Starting early and using compounding can lead to better returns over time.

We examine environmental, social, and governance (ESG) factors. These can affect a company's success and future. We collect data from trusted sources like financial reports and industry studies. Diversifying your investments can also reduce risk and increase what you might earn.

Some key things we look at include:

ESG criteria and their impact on investment returns

Diversification strategies to minimize risk and maximize returns

Market trends and conditions, including the performance of various asset classes

By carefully looking at these factors, we help investors understand the market. This way, they can make better choices for their portfolios.

Investment Type Return on Investment Risk Level

ESG Investments Higher returns over the long term Lower risk due to diversification

Traditional Investments Lower returns over the long term Higher risk due to lack of diversification

Current Investment Landscape in India

The investment scene in India is varied, with many choices for investors. SDIs can promise returns of 13-14% IRR. On the other hand, the National Pension Scheme (NPS) offers 8-9% returns each year.

India's economy is expected to have a nominal GDP of Rs. 77.31 lakh crores (US$ 928.9 billion) in Q1 2024-25. This shows a growth rate of 9.7%. The real GDP growth rate for Q1 2024-25 is estimated at 6.7%. Some top investment choices in India include:

Savings accounts

Liquid funds

Short-term funds

Debt Mutual Funds, which can yield a maximum return of up to 9-11% in 3 years

Corporate Bonds, which typically yield an interest rate of 9-12%

Investors in India can also look into the country's booming tech sector. It saw deals worth US$ 635 million in Q3 of 2024, a 31% YoY increase. With a wide range of investment options, India's landscape offers chances for growth and returns.

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