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Inflation is surging and traditional investments are losing interest. These factors have made it difficult to identify the best ways to invest money, especially if it’s a relatively high amount like ₹10 lakhs.
The largely unspoken rule of investing is that the more you invest the greater the payoff would be. This means ₹10 lakhs is a solid investment amount to start with. Let’s explore the best ways to invest this money.
The following list of assets is diverse and contains investment options that are linked to the market (stocks and mutual funds) and independent of it (alternative assets and PPF).
A wise investment strategy incorporates diversification, which means that you could even explore the possibilities of dividing the ₹10 lakhs across multiple investment options. You can consult a Cube Wealth Coach or download the Cube Wealth App.
Either way, the returns of the assets range from 7.1% to 16%. Let's look at the best ways to invest ₹10,00,000 for the long term:
Loans via Merchants by LiquiLoans is an alternative investment option. It is not linked to the stock market. This means you can wave volatility goodbye and earn predictable returns.
If you invest in LiquiLoans’ plans, you become a lender who loans money to top-end consumers. These creditworthy patrons prefer the flexibility of EMIs with brands like Richfeel, Mahesh Tutorials, and more.
LiquiLoans is an RBI regulated and CRISIL rated NBFC, a mantle that only it holds in India. These factors mean that LiquiLoans presents a solid way to invest money.
The plans by LiquiLoans can fetch you 8.00% to 9.35% returns with a lock-in of 0 to 24 months.
Staying with the theme of alternative assets, P2P Lending by Faircent allows you to lend to creditworthy borrowers. These borrowers have an average CIBIL score of 750+.
Faircent, or FC Double as it is known, generates twice as much as bank FDs. This means that investing in Faircent’s plans can help you earn solid returns of up to 12%.
These returns are not linked to the market. Faircent is also an RBI regulated NBFC. The plans by Faircent can generate 10-12% returns with a lock-in of 3 to 12 months.
The final alternative investment on our list is Asset Leasing by Grip. Asset leasing allows you to become a co-investor who owns a piece of physical assets like furniture, equipment, and others.
These assets are lent to creditworthy organizations like Furlenco, Rentomojo, and more. Asset Leasing by Grip is not linked to the stock market and is known to generate 12% post-tax returns.
You’ll receive passive income through recurring payouts, which makes Asset leasing by Grip one of the best investments to make money. Here’s an example of how Asset Leasing by Grip works:
You can buy US stocks from India in order to diversify internationally. The US is one of the strongest markets in the world with top brands like Apple, Microsoft, and more whose stock you can buy.
You’ll be earning returns in US dollars, a currency that’s rarely known to lose value. Historically, the US market has generated 7-9% returns over a 10-year period.
By investing ₹10,00,000 ($13,186) in a stock like Apple (ticker AAPL) in 2012, you could’ve earned ₹1,22,42,701 ($161,306) in 2022. These solid returns make US stocks a great avenue to invest money in.
Mutual funds are quickly becoming a favourite investment option in India. Investing in stocks takes a lot of research and time. Mutual funds solve these problems through professional management.
A fund manager and their team will do the buying and selling for you. Each mutual fund is a basket of stocks, which also means that you’ll be able to diversify your portfolio with ease. You can consult a Cube Wealth Coach or download the Cube Wealth App.
Mutual funds are known to generate varying returns based on what they invest in. Here’s a table that can tell you more about mutual fund returns and why they’re one of the best ways to invest money.
As far as investing goes, ₹10 lakhs is considered to be a solid amount to start with. You’d have the option to invest in India or the US, which means the best ways to invest ₹10 lakhs would include:
Finally, it’s important to remember that diversification is key. ₹10 lakhs is a sizeable amount that can give you the opportunity to invest across various assets to mitigate risk and potentially maximize returns.
₹5 lakhs is a decent amount that can unlock multiple investment opportunities in India. The best ways to invest this money include assets that can beat inflation and generate lucrative returns.
Alternative assets are one of these investment options that are known to generate solid returns between 8-12% (not linked to the stock market). The next option to invest ₹5 lakhs is mutual funds.
Mutual funds are diverse investments that contain a basket of securities like stocks and bonds. Based on your risk profile, you can invest in mutual funds and earn between 4-16% returns.
Last but not the least, US stocks have also emerged as a lucrative investment option for Indians. The RBI permits Indians to invest up to $250,000 in the US per financial year.
₹5 lakhs is approximately $6,600, which is well within the permitted limit. Apps like Cube can help you invest in US stocks directly from India with advice from RIA Rick Holbrook. You can consult a Cube Wealth Coach or download the Cube Wealth App.
Ans. To invest in real estate with ₹10,00,000, you can consider options like real estate investment trusts (REITs), real estate mutual funds, or crowdfunding platforms. These provide exposure to real estate without the need for large capital to purchase physical properties.
Ans. Alternative assets include commodities, precious metals, cryptocurrency, peer-to-peer lending, or even starting a small business. Each has its own risk and return characteristics, so thorough research is essential.
Investing ₹10,00,000 presents an opportunity to create a diversified portfolio that aligns with your financial goals and risk tolerance. Diversification across asset classes, such as stocks, bonds, real estate, and alternative assets, can help mitigate risk and potentially enhance returns.
Note: Facts & figures are true as of 30-03-2022. None of the information shared here is to be construed as investment advice. Exercise caution when investing in assets like stocks, mutual funds, alternative investments, and others.
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