Which are the best investment options for 2021? Stock Market, Mutual Funds, ELSS, Real Estate, Gold, Fixed Deposit, PPF, or NPS. Well, there are multiple investment options where investors can invest their money. But, most of the time it is seen that the Investor gets confused in selecting the best investment option that gives higher returns. To help investors, I will share the 5 Best Investment Ideas in this post.
Before taking a look at the best investment option of 2021 let’s take a look at which investment option has given good returns to the investor in 2020. The stock market and Gold have turned out to be best investment options for investors in 2020. Sensex has given 13% returns to the investors in 2020. However, Gold yellow material (Safe heaven) and silver have turned out to be a clear cut winner in 2020. Gold has given 28% returns to the investors in 2020 and Silver gave 43% returns to the investors.
Now let’s take a look at Best Investment Options for 2021.
Please note that the investment options given below are high return investment option for high-risk investors.
Best Investment Options 2021 | 5 Best Investment Ideas
#1 Equity Investment
Stock Market is the first choice when it comes to the best investment options for 2021. It is an investment option for high-risk investors. The stock market has generated magnificent returns for the investors in 2020 and is expected to give good returns in 2021 also. Few compelling reasons are given below.
Boost to economy
Positive news of vaccination and the expected vanishing of the COVID-19 pandemic will boost the economy. This will benefit hotels, airlines, restaurants, energy, real estate, and retail business. It will also reduce unemployment and result in increased spending and investment activity by domestic investors.
Boost in the Corporate earnings
Boost in the economy and favorable government policy will help in increasing corporate earnings. An increase in the earnings of corporate is good for the stock market. Strong corporate earnings will surely enhance investor confidence and lead to an increase in stock values.
Please note that the stock market requires a lot of knowledge. You need to analyze the stock before investing. You can expect 10-15% returns in the long to medium term from the stock market.
#2 Mutual Funds
Mutual Funds investment is in second place when it comes to the best investment options of 2021. Mutual funds give lower returns compared to the stock market but it comes with diversification opportunities. In volatile market conditions, Mutual funds SIP helps investors from price movements. It is high-risk high rewards investment option. Reasons to invest in a mutual fund is given below.
Stock Market performance
Looking at trends and positive news it is but natural that the stock market is likely to give better returns to investors in 2021. As the stock market will give better returns investors can expect growth in the equity-based mutual funds.
You can expect 10-12% returns in good mutual funds. It is advisable to invest in mutual funds via SIP route.
Gold yellow shining metal is considered safe heaven by many investors. Gold has generated consistently good returns for the investors. The investor should at least keep 2-5% of their investment in gold. Gold is high-risk high return investment option. The reason to invest in gold for the year 2021 is given below.
Historically gold has turned out to be a very good appreciating asset. In the year 2020, gold has generated 28% returns for the investors. In last 10 years (2011-2020) gold have generated 87% returns for the investor. Gold has generated negative returns only for twice in the last 10 years.
Covid-19 is not over yet. In a few countries still lockdown condition exists. A new strain of COVID virus may create more issue. Under the pandemic situation, Gold is best and safe investment option. Gold is a comparatively safe investment option for the investor.
#4 Real Estate
Real Estate is also one of the best and profitable investment option for 2021. Stock market give appreciation and dividend. Similarly, real estate generates rental income as well as appreciation over the years.
Due to less liquidity in the market properties are available at lower price. Home loan rates are low and favorable for the investors.
#5 Venture Capital
Venture capital investment means investment in the startup. If you have lot of money you can explore investing money in startup in the year 2021. It is best investment option only for the rich investor who have surplus money. It is borrowing given to new business. The new business may perform or may not perform. This means venture capital investment should be done after doing due diligence and proper research.
Over to you
To recap the best investment options of 2021 are equity, mutual fund, gold, real estate and venture capital.
Make sure to select an investment option based on your financial goal and risk appetite. You should know the investment option thoroughly before investing money.
Which option is best as per you in 2021? Let me know in the comment section given below.
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