Best Investment Options If You Have Rs 2 Lakh To Park

by inshol IST (published)

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It is difficult to find an investment vehicle that can provide sufficient returns in a short period. Therefore, investors should always review the situation first. Here are the investment options:

If you have Rs 2 lakh to invest, what are your best options? Well, while it may be difficult to mention any one investment, CNBC-TV18.com Talk to a few experts to learn about the best approach in the current environment.

Pawan Barach, principal at Renaissance Investment Managers believes stocks are the most rewarding asset class to bet on.

Interest rates are not good enough to cover inflation. With the further formalization of the economy, there is no longer a large amount of money that used to flow into real estate. Real estate now attracts mainly demand from users, not investors. Parach advises that the growth outlook for the Indian economy is very promising, making the case for equity investment even stronger.

However, he believes that investors should be aware of the fact that stocks carry higher risks versus asset classes such as debt.

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“If your appetite is moderate/high risk, you should have a higher equity allocation. On the other hand, if you are an investor with low risk appetite, you can have a 30-40 percent exposure to equities and balance toward debt,” he adds.

Within stocks, Barach believes that the allocation should be higher towards large capitals and most importantly it should be high quality stocks/mutual funds.

“Investors should not blindly chase returns but try to maximize risk-adjusted returns. In the absence of risk frameworks, equity portfolios can experience a huge downturn that can cause financial and emotional loss.

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Alternative Investment Options

Investors who already have an existing portfolio of low-risk, low-return products along with some equity exposure via stocks or mutual funds, should go for alternative investment options, says Nikhil Aggarwal, founder and CEO of Grip.

“As the name suggests, these assets add value to your existing investment portfolio by offering a reasonable amount of diversification, and are not directly related to stock market volatility. To build such a portfolio, you will need to include things like asset leasing, inventory financing, and startup equity. , and commercial real estate. This will help you diversify and generate predictable returns for your medium and long-term goals,” advises Aggarwal.

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“Plus, you can even arrange as little as Rs 2 lakh across multiple alternative investments that match your expectations the most. These options provide pre-tax returns ranging from 10 per cent – 21 per cent of the internal rate of return,” says Agarwal.

Note to readers

Disclaimer: The investment opinions and advice expressed by investment experts on CNBCTV18.com are their own and are not specific to the website or its management. CNBCTV18.com advises users to consult certified experts before making any investment decisions.

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