In today's dynamic financial landscape, strategic one-time investments have become an essential tool for securing a stable financial future. With the ever-present volatility in the markets, it's crucial to tailor your investment strategy to align with your specific financial goals. One-time investment plans offer a compelling solution, particularly for those with long-term aspirations such as funding a child's education or planning for retirement. These plans not only provide a shield against market fluctuations over extended periods but also allow investors to seize opportunities, even in bearish markets.
In India, a plethora of one-time investment options cater to diverse investor needs. These options span various asset classes, each offering distinct advantages. This article delves into some of the most promising one-time investment plans available today, shedding light on where to invest for optimal returns. From the relative safety of government and corporate bonds to the high potential of equity investments, the article explores these options in detail. It also introduces innovative investment opportunities like Gullak Gold+, which boasts impressive returns on gold with no lock-in period and a bank guarantee. Additionally, it touches upon real estate investments, ETFs, IPOs, and fixed deposits, providing a comprehensive overview of the choices available to investors.
Ultimately, selecting the right one-time investment plan hinges on factors like risk tolerance, liquidity needs, financial knowledge, and post-tax returns. This article serves as a valuable guide to help investors make informed decisions that align with their unique financial objectives and risk appetite.
One time investment plans: Where to invest money to get good returns
Among the vast number of one time investment plans available, we have created an in-depth guide into a few of the most popular investment options available.
Bonds as one time investment plan
Bonds are debt instruments issued by governments or corporations to raise capital. When you invest in these one-time investment plans, you are essentially lending money to the issuer in exchange for regular interest payments and the return of the principal amount at the end of the bond's tenure.
Bond investments are known for their relatively lower risk profile compared to equity investments. Corporate bonds generally provide higher returns than government bonds. Returns can range from 7%-12%pa. Investors with a low risk appetite can go for government bonds. Bonds generally come with lock-in periods that range from 6 months to 8 years, depending on the bond that you choose.
Returns: 7%-12% pa
Lock-in periods: 6 months to 8 years(depends on the bond)
Issuer: Government or corporates(depends on the bond)
Gullak Gold+ (16% returns on Gold) as one time investment plan
With a whopping 16% returns (11% CAGR + 5% extra gold p.a) on Gold, Gullak Gold+ is one of the fastest growing one-time investment plans in India. It gives investors the opportunity to get extra 5% gold every year on top of Gold’s annual returns. If we look at the gold price trend, historically gold has given ~11% returns per annum. The extra fixed 5% extra gold is made possible via Gold leasing. With the 16% returns pa, this investment option can double your investments in 5 years. There’s no lock-in period & investors are also provided with a 100% bank guarantee on their investments.
Returns: 16% pa
Lock-in periods: none
Issuer: Gullak in partnership with Augmont(India’s 3rd largest gold refinery)
Equity investments as one time investment plan
This refers to stock market investments. Equity investors purchase shares of a company with the expectation that they’ll rise in value in the form of capital gains, and/or generate capital dividends. If you have a higher risk appetite & adequate financial knowledge, equity investments are one of the best one time investment plans. There are no lock-in periods
The potential for growth in equity funds is accompanied by the necessity to carefully assess and manage the risks involved, ensuring a balanced and informed approach to achieving financial objectives.
Real Estate as one time investment plan
This one time investment plan entails procuring assets encompassing residential, commercial, or rental properties, driven by the anticipation of value escalation over time. Real estate ventures furnish a steadfast income stream through rental disbursements, coupled with the potential for capital augmentation. In India, this one time investment plan gives average returns of 9%p.a. Investors can also invest in REITs. REITs allow one to buy shares of real estate without actually buying the entire property.
However, delving into real estate demands assiduous groundwork, given its considerable capital outlay and the likelihood of illiquidity. During the scrutiny of real estate investment prospects, investors must meticulously factor in elements such as geographical placement, property classification, prevailing market dynamics, and the latent scope for rental yields.
ETFs (Exchange Traded Funds) as one time investment plan
ETFs are funds that are traded on stock exchanges. These investment options are similar to stock investments & provide exposure into diverse sectors like commodity, bond, or a basket of assets.
Based on the sector, there exist a variety of ETFs. Of these, stock ETFs provide the highest returns. Returns generally range from 10-15% pa(high risk). Bond ETFs(low risk) generally provide you ~8% returns while gold ETFs provide ~10% returns(low risk).
IPOs (Initial Public Offering) as one time investment plan
An IPO is when a publicly held company offers its shares to the public for investing. Investment options like an IPO refers to investing in a company when it is first listed in the stock market. These can procure massive returns if the company performs well.
There are quite a few insights that need to be considered before investing in an IPO. Since there’s no historical performance available, investors need to consider whether or not the stock is overvalued, lock-up periods associated, regulation & legal issues etc.
Fixed Deposit as one time investment plan
Investment options like Fixed Deposits involve depositing a specific amount of money in your bank for a predetermined period, with an agreed-upon interest rate. Upon the completion of this period, you receive your initial deposit along with the interest. FDs generally provide ~7% returns pa.
Factors to consider before investing in one-time investment plans
When considering one time investment options there are a few factors that influence your investment strategy. Below are a mandatory factors that investors should consider:
Risk tolerance: The level of risk an investor is willing to take is a crucial factor to choosing the one time investment plan. Investment options like stocks give you higher returns but are a risky investment. At the same time, bonds are a safer investment option to choose but returns are lower.
Liquidity: For short term goals, assets with easy liquidity like a Fixed deposit or Gullak Gold+ can be chosen. For long-term goals assets with lower liquidity can be chosen. Investment options without any lock-in periods perform best in terms of liquidity.
Financial Knowledge: Before choosing an investment option it is imperative to have sufficient knowledge about the asset, the market conditions, potential growth rate.
Post tax returns: The fundamental aim of investing in any asset is to make a profit by selling it when its value rises. It's crucial to understand that these profits may not be exempt from taxation. Investors need to be aware of the long-term & short-term taxations incurred on their investments & select their assets based on the returns post taxation.
One-time investment plans: Where to invest?
Deliberating upon the optimal one-time investment plan, renowned for yielding impressive returns, necessitates a meticulous assessment of diverse elements including one's risk appetite, financial objectives, investment duration, and the prevailing market milieu. Investors with a higher risk appetite can choose to allocate a significant portion of their
portfolio into equity investments & corporate bonds. While investors with lower risk appetite & fine with lock-in periods can choose government bonds as their go to asset. If you’re looking for a mix of high returns & added security, Gullak Gold+ 5% plan can fit into the equation here. The ~16% returns per annum along the 100% bank guarantee & no lock-in periods make it an appropriate asset for one-time investments. That being said, everyone’s financial goals & risk appetite are different. Hence, one should do proper research before choosing the ideal one time investment plan.
Navigating the complex world of one-time investments demands a strategic approach tailored to individual financial objectives and risk tolerance. As the financial landscape evolves, the need for prudent investment decisions becomes increasingly vital in securing a stable financial future. One-time investment plans offer a diverse array of opportunities, each catering to distinct investor needs.
From the stability of government and corporate bonds to the exciting prospects of equity investments, real estate, and innovative options like Gullak Gold+, there is no shortage of avenues to explore. The key lies in meticulous consideration of factors such as risk tolerance, liquidity requirements, financial acumen, and post-tax returns.
While some may favor the potential for high returns in equity investments, others may opt for the safety of government bonds or the unique benefits of investment options like Gullak Gold+. Ultimately, there is no one-size-fits-all solution, and investors must conduct thorough research to align their investments with their financial goals.
In this ever-changing financial landscape, one-time investment plans remain a powerful tool for building wealth and securing a brighter financial future.
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