Real Estate.
There is truth in the fact that the importance of land has remained same from time immemorial. Brothers fought brothers and kingdoms collapsed in this battle for land, and yet, we forget to learn from history and continue vying for what’s available. The prima facie fact that real estate never loses value or demand, makes it a great investment option, offering better returns than traditional investment ideas. There are a variety of reasons that make real estate investment so advantageous.
Risk is a very important factor when we talk about good returns and that is minimized when real estate is held for a lengthy period of time. However, in other options like the stock market, the risk factor never goes away.
With increases and decreases in the market, there can be no value left in other investments, but your real estate investment will always offer tangible asset value. Home owner’s insurance also protects such investment.
One can get deductions in tax on various things such as mortgage interest, operating expenses and costs, cash flow from other investments and soon. It is always beneficial to contact a firm that deals in real estate to get more information on this, subject to the area where you want to invest. Accounts of rental repairs, utilities, maintenance etc should be maintained to make this job easier.
Other than renting a property, profits can be generated by buying, selling and the ability to build equity on the property. It ensures that you get a passive income on the side, apart from your primary income.
With increase in inflation, prices of rent can also be increased with time. However, such a benefit is not necessarily offered with stocks or other investment options.
Investing in real estate makes one their own boss and therefore, risk management is easier since the control is in the hand of the investment maker. Other factors will affect and cause changes in your investment, however, since you are the one calling the shots, the risk can be much better calculated.
Other than this, real estate investment can be a very good early or regular retirement plan. If a person is well researched and knows the basics of how to invest, your property can ensure a steady income all through your years of rest from work. With years of experience and expertise Rajdeo Wealth Co. makes Real estate investment fruitful and profitable.
Debt Market.
The fundamental reason for investing in debt funds is to earn a steady interest income and capital appreciation. The issuers of debt instruments pre-decide the interest rate you will receive as well as the maturity period. Hence, they are also known as 'fixed income' securities Investments in debt securities typically involve less risk than equity investments and offer a lower potential return on investment. Debt investments by nature fluctuate less in price than stocks. Even if a company is liquidated, bondholders are the first to be paid. Bonds are the most common form of debt investment.
Here are 5 reasons to invest in Debt Market
Debt mutual funds invest in fixed income security instruments. This makes them far less risky than a lot of other instruments. They are the sweet spot between direct equity investments and traditional instruments such as fixed deposits. If you don’t have a huge risk appetite and are seeking capital gains in the new year, you should consider corporate bond funds and banking and PSU debt funds. The money you invest will grow at a slow yet consistent pace. They can make for good lumpsum investments too
Yes, we are indeed talking about SIPs (Systematic Investment Plans),the best way to invest in mutual funds in terms of convenience, especially for inexperienced investors. It is a very simple process wherein you have to transfer money from your bank account to the debt fund. You can also give standing instructions to your bank for debiting a predetermined amount every month from your account. You can also modify your SIPs as per your income flow. This way, you get accountability to yourself for investing consistently while also enjoying the option to change things at any point.
There are two options for investing in debt funds- growth and dividend. What you choose depends upon your investment objectives. In the case of a growth option, your returns are reinvested in the fund. The growth option is great if you’re looking at a long-term investment. If you want returns at regular intervals, you can go for the dividend option as well. However, the growth option also comes with added long-term benefits such as an increase in the fund’s NAV(Net Asset Value) in the long term. Plus, in case of investment gains for a duration of 3 years or more are, the capital gains on debt mutual funds are taxed at 20%post indexation, which is better than fixed deposits which might be taxed as per your tax slab that could go up to 30%.
Investing in itself might seem like risky business in the year 2020,with the market showing uncertain behavior every other day. The age-old idea of diversifying becomes extremely important at this time. Make sure you don’t make the mistake of parking all your money in fixed deposits. Debt funds can make a good part of your revival strategy next year, as they are now safer with new regulations introduced this year.
Long term debt investments are very sensitive to changes in interest rates. When rates decrease, they are at the biggest advantage. This happens because investors pay more for instruments with higher rates in an environment of falling interests. This spike in demand pushes up the prices of bonds and NAV of plans that invest in long-term debt funds. The vice versa of this is also true.
CONCLUSION: The recent troubles that credit funds have had should be taken as nothing but learning by investors and the market alike. If you are well-informed and aware of what you’re getting into, you can very well enjoy good returns with long-term debt mutual funds. And of course, do not forget to diversify and remember not to put all your eggs in one basket!
Equity Market.
The main benefit from an equity investment is the possibility to increase the value of the principal amount invested. This comes in the form of capital gains and dividends. ... Investors may also be able to increase investment through rights shares, should a company wish to raise additional capital in equity markets. If you have a long-term plan for wealth creation, you must be wondering about the right investment. You have a plethora of investment options to choose from, including Fixed Deposits (FDs), gold, real estate and equities. Among all the alternatives, market experts recommend equities as the best bet. Along with high returns, equities provide you with a chance to build a diversified portfolio. Typically, you must start your investment in equities after researching and understanding the basics of stock markets.
5 Reasons Why You Should Choose Equity
You cannot think of investing in real estate without having a huge amount of capital. Similarly, for getting high returns from gold or FDs, you have to invest a large amount. But, in the case of investment in equities, you can start trading with a much lesser amount of capital. For instance, if you have a capital of Rs 1 lakh, then you can easily start trading in stock and securities. You also have the option of creating a diversified basket of stocks by purchasing small-cap, mid-cap and large-cap stocks. None of the other three investment options provide you with the option of diversification by investing a low amount of capital. In a nutshell, you can enter the stock markets with a small capital, and watch your wealth appreciate.
You will receive higher returns by investing in equities as opposed to investments in gold, real estate and FDs. While long-term returns from equities can range between14-16%, returns from FDs average around 7%. Gold prices are often volatile and are affected by a slew of factors like inflation, GDP and the political scenario. Violent swing in gold prices will affect your returns. The rate of return from real estate, including commercial and residential properties, average 11%. Thus, equities have a considerable edge over FDs, gold and real estate, in terms of returns.
Investment in gold, real estate and FDs cannot be readily converted into cash. If you require instant money, for any emergency, you cannot depend on these investment options. But, in the case of equities, you can quickly convert them into cash. All you require is to sell your stock through your online trading account, and the money will be credited in your bank account within a few days.
- The long-term returns from equities will beat inflation. This is because various companies invest in assets using borrowed money from investors and creditors. This allows them the businesses to earn higher returns. By owning the shares of a company, you also become part-owners and share in the profits. According to market experts, if inflation stands at 10%, and the real economy has a growth rate of 10%, then stocks would yield 20% returns.
- Another advantage of investment in equities is the risk premium. Equity risk premium simply means the excess returns from stock markets vis-à-vis a risk free rate. This excess return will compensate you for taking the relatively higher risk of investing in stocks.
Alongside, investment in equities has several tax-benefits:
- You can off-set short term capital gains against short term capital losses and save taxes.
- With the carry forward option, you can offset your capital gains against capital losses for up to 8 consecutive years.
- You can invest in Equity-linked Saving Schemes (ELSS) to save taxes under Section 80C of the Income Tax Act.
Equities have unbeatable performance among various asset classes: Equities arethe best performing asset classes because of three key factors:
- Compounding effect
- Capital Appreciation
- Dividend income
This unbeatable performance can be explained with a simple example. If you had invested Rs 10,000 in an FD in 1993, it would be worth around Rs 67,000 now. The same amount invested in a high-performing business would range between Rs 50lakh to Rs 1 crore.
CONCLUSION: Thus, investments in equities have a proven track record of being better than investments in FDs, gold or real estate. When investing in the equity market, you must remember that Equity markets while promising high returns it can also result in high risk if not analysed properly before investing , Rajdeo Wealth Co. with years of research & analytical studies establishes a strong balance in Equity Investments to ensure wealth creation .
Mutual Fund Investment.
The primary benefit of investing in a mutual fund is that you get exposure to a variety of shares or fixed income instruments. ... In this way, mutual funds ensure diversification. If you are a lay investor who doesn't want to spend a lot of time researching stocks, go for mutual funds.
When it comes to investment decisions, it’s better to leave it to the experts. A good investment advisor can help you maximise returns and minimise risks. So from the expert point of view, the best option for you as an investor to achieve your personal financial goals is mutual funds. Here are seven advantages of mutual funds:
Mutual funds invest in two main asset classes -- debt and equity. Some funds are pure debt, and some invest in just equity; others are balanced or hybrid.
The primary benefit of investing in a mutual fund is that you get exposure to a variety of shares or fixed income instruments. For instance, if you wanted to invest Rs. 1,000directly in stocks, you would probably get only a share or two. If, on the other hand, you invested through a mutual fund, you would get a basket of several stocks for the same amount.
If a few securities in a portfolio don’t perform, the others compensate. In this way, mutual funds ensure diversification. If you are a lay investor who doesn’t want to spend a lot of time researching stocks, go for mutual funds.
This could be one of the significant benefits of mutual funds. There are over 2,000 currently active schemes -- a lot to choose from. You can find funds that match your risk appetite, investment horizons, and personal financial goals.
Debt funds are the least risky, balanced or hybrid funds are moderately risky, and equity funds involve the highest risk. However, the reward is directly proportional to risk. Higher the risk, higher the returns.
Even within these broad categories, there are many choices. For example, a large-cap equity fund will be less volatile and offer lower but stable returns. Mid-cap or small-cap equity funds, on the other hand, can fluctuate wildly but have the potential to give higher returns in the longer term. And when it comes to debt funds, a fund that invests in corporate paper will offer higher returns than a gilt fund but will carry higher risk.
If you invest in open-ended mutual funds (which most funds are), you can buy and sell your units at any time. Your total redeemable or buyable value is based on the fund’s net asset value (NAV) for that day.
Close-ended funds too can be liquid. Even though they’re for a fixed duration, close-ended funds are listed on an exchange after the New Fund Offer (NFO) closes. Once these funds are listed on a stock exchange, they are freely bought and sold.
So, whether you buy open-ended or close-ended funds, there’s always a high level of liquidity.
Do note that some Mutual Funds like Tax Savings Funds(ELSS) come with a lock-in period of 3 years
One of the advantages of mutual funds is flexibility. You can either make a lump sum investment or put in small amounts over some time through a SIP (Systematic Investment Plan).Lumpsum investment works well if you have idle cash. Were commend investing through SIP because you can invest relatively lesser amounts (than lumpsum). Also, because of rupee cost averaging, the cost of acquiring mutual fund units can be lower. We’ve spoken at length about SIP basics in our earlier article.
You can begin a SIP with as little as ₹500 a month. The advantage here is that you don’t have to wait for a while until you accumulate enough cash to make investments. Therefore, you will be able to make optimum use of available cash and maximise returns.
Investing through mutual funds is quite cost-efficient. When you buy equity directly, you have to pay costs like broker age and Securities Transaction Tax (STT). The larger the number of transactions, the higher your costs will be. Mutual funds have the benefit overlay investors in that they do bulk transactions and are hence able to enjoy economies of scale. They may, for example, be able to get lower brokerage rates, which benefits investors in mutual funds. A debt fund may be able to negotiate higher interest rates from debt issuers since they deal in large quantities.
Finally, one of the benefits of mutual funds is you can save income tax. If you invest in an ELSS fund, you can reduce your taxable income by as much as Rs 1.5 lakh under Section 80Cof the Income Tax Act - 1961.
Conclusion: Mutual funds are a popular investment avenue among investors, as they are easy to invest in and give higher returns as compared to other traditional asset classes such as FDs or saving bank deposits. ... If you have still not invested in mutual funds, make your investments soon.
CONCLUSION: The recent troubles that credit funds have had should be taken as nothing but learning by investors and the market alike. If you are well-informed and aware of what you’re getting into, you can very well enjoy good returns with long-term debt mutual funds. And of course, do not forget to diversify and remember not to put all your eggs in one basket!
Commodities.
Investing in commodities can provide investors with diversification, a hedge against inflation, and excess positive returns. Investors may experience volatility when their investments track a single commodity or one sector of the economy. Supply, demand, and geopolitics all affect commodity prices.
The two most common times when investors flock to commodities is during times when commodities become very cheap, and commodities are considered a value play. The other time is when commodities are hitting multi-year highs and investors want to catch the trend
Commodities are extremely important as they are essential factors in the production of other goods. ...These commodities are traded constantly on commodity exchanges around the world.
For proper portfolio diversification, one should try and invest a part of the money in commodities, as this asset class tends to offer the benefit of economic cycles. ... Sebi is the regulator for commodities, like equity, and one needs a demat and a trading account to trade in it
- Crude oil
- Coffee
- Natural gas
- Gold
- Wheat
- Cotton
- Corn
- Sugar
Exchange traded commodities are;
Aluminium, Copper, Lead, Nickel, Sponge Iron, Steel Long (Bhavnagar), Steel Long (Govindgarh), Steel Flat, Tin, Zinc
Gold, Gold HNI, Gold M, I-gold, Silver, Silver HNI, Silver M
Cotton L Staple, Cotton M Staple, Cotton S Staple, Cotton Yarn, Kapas
Brent Crude Oil, Crude Oil, Furnace Oil, Natural Gas, M. E. Sour Crude Oil
Cardamom, Jeera, Pepper, Red Chilli, Turmeric
Arecanut, Cashew Kernel, Coffee (Robusta), Rubber
Chana, Masur, Yellow Peas
HDPE, Polypropylene(PP), PVC
Castor Oil, Castor Seeds, Coconut Cake, Coconut Oil, Cotton Seed, Crude Palm Oil, Groundnut Oil, Kapasia Khalli, Mustard Oil, Mustard Seed (Jaipur), Mustard Seed (Sirsa), RBD Palmolein, Refined Soy Oil, Refined Sunflower Oil, Rice Bran DOC, Rice Bran Refined Oil,
Sesame Seed, Soymeal, Soy Bean, Soy Seeds
Maize Guargum, Guar Seed, Gurchaku, Mentha Oil, Potato(Agra), Potato (Tarkeshwar), Sugar M-30, Sugar S-30
5 reasons why commodity trading is on the rise in India
Over the past few years, broking firms have made sizeable investment in trading platforms. Such investments have largely been focused on simplifying the investor journey. Earlier, opening trading and demat accounts used to take anywhere between two to three weeks, in some cases even months. Leading brokerages have cut this turnaround time down to less than an hour, that too, without making an investor step out of her home.
We’ve also seen a rise in rule-based investment engines and across-the-board technology integration to trading and investment. This has empowered investors with low entry barriers to make informed investment decisions while trading in commodities.
Empirical data suggests equities and bonds, as asset classes, underperform in an inflationary environment, while commodities tend to fare better. There is also a negative correlation between equities and commodities. Investors use commodities as a hedge against market dynamics. In a mixed portfolio of equities, commodities and bonds, commodities tend to fare better than other instruments.
: India has one of the largest pools of youth with the majority of population below the age of 40. This rising mass of millennial investors is well-read and well-educated. Investors today are more confident to go beyond conventional investment instruments such as real estate and bank deposits. They look at alternative instruments like commodities to ensure optimal return on investment (ROI) as per seasonal demands.
Banks have good exposure to commodities in India, something that continues to amplify. Food credit extended by banks is a classic example in this case. Further, institutional measures such as the Essential Commodities Act and Electronic Negotiable Warehouse Receipts (e-NWRs) have safeguarded the interest of all stakeholders.
This has prompted banks to increase their coverage of commodities trading. The use of banking options has increased the participation of retail investors within the commodities space, especially in a post-Covid scenario.
The price action in commodities is determined by various factors such as agricultural produce, manufacturing output, exports and rainfall besides others. These factors enable an investor to leverage predictive analytics for their investments.
CONCLUSION: Nowadays, brokerage firms offer state-of-the-art investment engines powered by rule-based methodology. These investment engines analyze more than 1 billion data points before giving any recommendation. It can enable retail investors to invest in commodities and enjoy a touch-of-the-button experience. These are some of the top reasons driving hordes of investors into commodities. As retail participation increases from Tier II & III cities along with in certain rural pockets, it can be said that we haven’t even scratched the surface yet. The future looks promising.
Engineering.
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With increasing property prices and increasing need of Proper Planning of a factory /warehouse Fit-Right Storage Systems specialises in customising storage systems to optimise Space and efficiency to achieve highest productivity levels of organisations .
With a wide range of products & services under 1 roof Fit-Right Storage Systems becomes one of the best companies to got to
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Business Ventures.
Rajdeo Wealthco. Over the years realised that the future is bright and small ideas can turn into big businesses , Rajdeo Wealthco. Hereby has always been forward in investing in small& medium business and helping them grow .
There are a number of new companies / startups with great ideas combined with technology & resources to achieve the unexpected Rajdeo Wealthco encourages such business to grow by investing in them .
You can also avail this benefit by contacting us on rajdeowealthco@gmail.com , you will need to give a short description about your profile & business and your expectation& on receiving your mail we shall set up a briefing and understand your business and also see how we can grow together. Contact us now !!
