Investment options in India.

Mar 14, 2021 17 Comments

My parents are getting retirement funds (~1 crore rs) and we are planning to invest. We are exploring few investment options:
1. Fixed deposit:
Relatively less management headache.
4-5% rate of interest which yields 4/5 lakh per annum.
Cons:
1. Have to distribute over various banks due to scams and no FDIC insurance.
2. Inflation is high and hard to keep up.
3. Fix deposits interest going down year over year and may not be long term bet.

2. Investment property:
We have 2 properties on rent and one of them is vacant due to covid (no tenants available to rent). So we lost rent of 1 full year.

Pros:
1. Property rates go up and catch up with inflation. They may go down considering economical crises ongoing.
2. Safer option than Fix Deposit as they are susceptible to scam.
Cons:
1 have to keep track on tenants. Fix deposits interest per year is 5lakh but rent will be 3lakh. Also have to pay 1 month’s rent to agents etc.
2 have heard about tenants not leaving and have to evict them.

3. Buying a commercial:
Have no experience in this. But very expensive and rent is not as high.

4. Stock trading:
Very risky especially in India and parents have no experience in this. Need to do some research and I need to get involved. I don’t have a lot of time, I need to pick good stocks and keep track and not let parents panic sell. Is sharekhan a good broker? Any good broker you recommend. I would focus on ease of use than costs.

Any other options you have? No trolls please.

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