Please forward this error screen to md-in-19. How to What is the best investment in india a Home Purchase?
Why not to use credit card? How to Stop Overspending of money? High return investment is a phrases which is like a catchy dream. For some people it is a reality.
These are those people who know how to balance risk and reward. We all know that stocks are high return investment, but how many make money in stocks? These tiny minority know how to generate high returns from their investment in stocks. They know to balance-out the risk factory associated with stocks and maximise the rewards. Is the skill to balance risk and reward a tough ask? The only limitation is, it takes time to master this skill. But while one is learning investment, they can simultaneously also practice the learned skill.
This way the longer investment journey actually feels shorter. Though common men would like to buy high return investments, but what comes with such investments is the associated risks. For any investor, it is absolutely necessary to learn to manage the risks. How one can manage investment risks? Diversify by buying index linked ETF’s. Diversify by spreading your money in non-related investment products.
For me the best is to be an investor who knows his investments. If you are investing in stocks, make stock evaluation your forte like Warren Buffett. While investing in real estate, become a master of it like Robert Kiyosaki. If you are investing in mutual funds, become a master of it like Jack Bogle. Whats common with Buffett, Kiyosaki, and Bogle?
They are all masters of their own field of investment. In India we know Rakesh Jhunjhunwala, he is the Warren Buffett of India. I know, I am taking too big names here as a reference. Hence, the first step forward to buy high return investments in India is to start learning. Invest for Long Term There is something simpler for common men to do, which helps in investment risk management?
Buy riskier investments, I just hold them longer. Of course, there are other control points that must also be practiced. Short term uncertainties comes as a package with all high return investments. Like stocks, they are very volatile in short term. But with time, the net growth trend is more obvious.
What make stocks appreciate in long term? It takes time for strong business fundamentals to overcome short term volatility. Hence, holding high return investments for longer duration is advisable. Its important to define first, what it means by high returns. Example: Returns of Bank’s fixed deposits are like a risk free rate. Banks will give the same return to Warren Buffett as they will offer to me.
The return that we earn over risk free rate is risk premium. The higher is the risk premium, the higher is the return. Yes, there exists a formula of high returns. So how does a high return formula looks like? This is the return of a 10Y Governemnt bond in India.