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If you’re considering opting for long-term investments, you will probably reap too many benefits as they usually compound interest in case of fixed deposits of the bank. Secondly, long term investments are also tax-effective as is the case with few mutual fund investments. All those investments which are held for more than 3 years are called long term investments and they require commitment in spite of the fact that you might face different fiscal impediments during the investment journey.
No matter which investment you wish to choose, whether long-term or short-term, here are few investment options that you should watch out for in 2018.
#1: Debt investment
This is probably the safest options to invest and few of the most-preferred debt instruments are fixed deposits of Post Offices, Nationalized Banks, Government Bonds and many more. These assets borrow from us at pretty low rates and lend it again at higher rates to big and small business corporations and other development projects. Majority of these borrowers, companies and entrepreneurs perform really well, they pay interest rates and repay the principles of loans while still keeping a profit to themselves.
#2: Gold investment
There’s no doubt about the fact that gold is a precious metal and that it is appreciating in value with time. It is not only a passive asset but also static at the same time. If you have 100 grams of gold, it won’t decrease to 95 grams or increase to 105 grams and its purity will also not change from 22 Carat to 24 Carat. Hence, investing in gold is like investing in mere commodity rather than an asset. Fluctuations in price are solely due to demand and supply forces and not because of any change in real worth.
#3: Diamonds are also worth investing in
One among the most expensive crystals in the world is diamond. The portability and immensely condensed value make diamond a form of emergency funding for the rulers, dictators and even for the super rich people. Just as gold, diamond also remains static and passive. However, due to its brittle nature, it can easily get damaged or scratched and hence you have to handle it with enough care.
#4: Real estate investment
There are people who say that real estate is the safest and best investment option. The fact is that real estate indeed a high investment option because you need at least 15-20 lacs to get hold of a property. Furthermore, there have been too many frauds that have been noticed in this industry and the cost of transaction is even too high, around 10% of the cost. Moreover, real estate investment doesn’t have enough liquidity. So, be careful about your requirements and your affordability before you invest in real estate.
Therefore, now that you know the different options of investing your money in 2018, follow the advice of the experts. Get help of an investment expert in case you don’t rely on your personal predictive analysis.