Where to Invest 1 Lakh Rupees, 6 Proven method to Invest Money in India with High Returns

Where to Invest 1 Lakh Rupees, 6 Proven method to Invest Money in India with High Returns
Where to Invest 1 Lakh Rupees, 6 Proven method to Invest Money in India with High Returns

Where to Invest 1 Lakh Rupees: If you’re thinking about investing 1 lakh rupees but need help knowing where to start, you’ve come to the right place. In this article, we’ll break down different investment options based on your risk level and how long you plan to invest.

Here are the 6 things or outcomes before you Invest Money in India with High Returns

Who Are Balanced Investors?

Balanced investors are people who are okay with taking some risks to potentially get higher returns than conservative investors. They can handle losses of up to 20% in their investments, and they aim for growth of up to 20%.

Why is Reducing Risk Important?

Before we go through investment strategies, let’s talk about a crucial aspect of managing your finances: reducing risk. One of the most significant financial risks we all face, especially in India, is rising medical expenses. A single big medical bill can seriously hurt your savings and investments. That’s why getting good health insurance is a smart move.

Where to Invest 1 Lakh Rupees, 6 Proven method to Invest Money in India with High Returns

Also Read: 5 Best Stock to Invest for Long Term in 2023

You can use Ditto Insurance, a platform backed by Zeroda, for free consultations to help you choose the right health insurance policy. They offer complete peace of mind with their spam-free services. Just click the link in the description to schedule a call and secure your financial future.

Investment Strategies for Balanced Investors with More Than 3 Years to Invest

If you’re a balanced investor and you’re planning to keep your 1 lakh rupees invested for more than three years, here’s what we suggest:

  • Put 80% in Blue Chip Stocks: These are reliable, well-established companies.
  • Allocate 20% in Midcap Stocks: These are mid-sized companies with good growth potential.

Best, Worst, and Average Outcomes

In the best-case scenario, your 80,000 rupees in Blue Chip stocks could gain up to 35% annually. Your 20,000 rupees in midcap stocks could even yield a remarkable 103% return, averaging out at 49%.

But remember, these numbers are based on historical data and are not guaranteed. It’s important to know that while these returns are possible, they’re not very likely. Blue Chip stocks like Adani are exceptional, and not all stocks perform this well.

In the worst-case scenario, your Blue Chip stocks might only bring in -4%, while midcap stocks could see returns as low as -43%, resulting in an average annual loss of -12%.

The key takeaway is that while high returns are possible, they come with higher risks and depend on your stock-picking skills. On average, you can expect a 14% annual return, which is still good compared to Nifty50 returns.

Where to Invest 1 Lakh Rupees, 6 Proven method to Invest Money in India with High Returns

Where to Invest 1 Lakh Rupees: Balanced Investors with a 1 to 3 Years Investment Horizon

If you’re a balanced investor looking to invest for a shorter time, between 1 to 3 years, here’s a suggested allocation:

  • Half in Blue Chip Stocks: This provides stability and potential growth.
  • 40% in Nifty50 Index Fund or ETF: It’s a diversified option.
  • 10% in Midcap Index Fund: This allows you to capitalize on midcap potential.

Best, Worst, and Average Outcomes

In the best-case scenario, your 50,000 rupees in Blue Chip stocks could gain up to 40% annually. The Nifty50 index might provide returns of up to 64%, resulting in an average best-case return of 53%.

But in the worst-case scenario, your Blue Chip stocks could yield as low as -11% and the Nifty50 index might see returns of -7%, leading to an average annual loss of -15%.

On average, you can expect a 17% annual return, which is better than conservative investments.

Also Read: How to get Rich in India, 7 Proven Easy way to become Billionaire

Where to Invest 1 Lakh Rupees, 6 Proven method to Invest Money in India with High Returns

Where to Invest 1 Lakh Rupees: Balanced Investors with Less Than One Year to Invest

For balanced investors planning to invest for less than one year, consider this allocation:

  • 40% in Fixed Deposits (FDs): FDs are safe and secure.
  • 30% in Nifty50 Index Fund: This offers some diversification.
  • 30% in Selected Blue Chip Stocks: Balancing risk and return.

Best, Worst, and Average Outcomes

In the best-case scenario, FDs might yield 7% annually, while the Nifty50 index could see returns of up to 100%, resulting in an average best-case return of 48%.

In the worst-case scenario, FDs could yield 7%, but the Nifty50 index might provide returns as low as -55%, leading to an average annual loss of -17%.

On average, you can expect a 15% annual return, offering a balance between risk and potential return.

Invest Wisely

Balanced investors have plenty of options when it comes to investing 1 lakh rupees, depending on their investment horizon. It’s crucial to consider your risk tolerance and goals before making investment decisions. Remember that past performance doesn’t guarantee future results, and diversification can help manage risk.

Before you invest, make sure you have proper health insurance to protect your financial well-being. So, these were the 6 Proven methods to Invest Money in India with High Returns.

Also Read: How to Earn Money Online for Students Without Investment in 2023

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