India Investment Instruments 2019
The table below shows the average returns expected from a variety of investment options. You should refer to it to help you plan out your next short or long-term investment. Actual returns depend on your scheme's performance, investment duration, and tax bucket. One should have a balanced structure portfolio of a mix of equity and debt funds.
|Small Cap Fund||3||7.5||-7.5||-21.5||9||21.5||Low||High|
|Equity Linked Saving Scheme||2.5||7.5||-2||-9||11.5||16||Low||High|
- I am not an investment expert, and this information should be considered only for reference.
- The above table shows return in percentage (%); m represents months, and y represents years.
- The data provided is not exact, and it imitates CAGR (Category Average) collected over various resources as per the time of writing this blog.
- Payments banks have an upper limit of 1,00,000 (1 lakh) rupees
- Index funds represent various BSE and NSE indices based funds
- Small-Cap, Index(Large Cap), and ELSS are Equity Mutual Funds
- Arbitrage is Hybrid/Balanced Mutual Fund
- Gilt and Liquid are Debt Mutual Funds
- Returns over 1 year are Annualized
- Mutual funds attract 15% tax on the gain if invested more petite than a year and a 10% rate if invested for more than a year.
- Cryptocurrency is highly volatile. Thus, you should only invest your throw-away money into it; prices are derived from Bitcoin (BTC) prices.
- Liquidity and Tax rates should be focused upon while drafting a portfolio
- Low liquidity refers to lock in time before the modest positive return
- Equity stocks are high risk, and Debt stocks are low risk
- High-risk investment generally yields high returns
- For Tax saving purpose, you should invest in ELSS, which has 3-year lock-in periods, and the principal amount is exempted from tax up to 1,50,000 (1 lakh 50 thousand) rupees under 80C
- You can expect 8-12% interest on ELSS after maturity; gains over 1,00,000 (1 lakh) in a year is taxed at a 10% rate
- For a long term investment of 5 years or more, you should opt for Small Cap or Blue Chip funds
- For investments between 1 to 3 years, choose Liquid Funds
- Go for Savings accounts for short terms investments up to a year