Here is a question to anyone who is reading this post, if you have Rs 50,000, where will you invest it to get the highest ROI ?
1. Fixed Deposit – Banks are giving 6.5% yearly fixed deposit interest Rate so that is not exciting, infact if we consider inflation rates you may lose money in long run.
2. Buy Gold – Gold has doubled up (its around Rs 18k per 10 gms) since last year but than I don’t think it will go very high, may be 25k at max so you already missed the opportunity. Also gold prices sometimes just stuck for years at same rate, so again not ideal investment.
3. Mutual Funds and stocks – You can certainly get good returns specially from stocks if you do it full time though personally I feels daily trading is a flawed business model and it doesn’t excite me personally, but considering you just have Rs 50k which you may break it into multiple parts and make diversified investment, you won’t be getting high return unless you are willing to make very high risk investment, sort of double or nothing, something which I will never do since one day (most likely today), you will lose everything.
4. ULIP, SIP and Insurance – well they are not bad option though you won’t get much return from them unless you are willing to invest for 5 years minimum.
So where can you invest your Rs 50,000 to get the highest return ?
Here is my answer, and amazingly I was able to realize this back in college days (where my mind was only working at 30% efficiency), if you have Rs 50,000 you want to invest it onto yourself. Don’t buy a bike, Don’t buy costly watches or shoes, Don’t to go to costly multiplexes watching bollywood trash and eating at overprices restaurents, Don’t put the money in banks or invest in Mutual funds or stocks, Spend the Money on yourself learning new things, getting more knowledge and make yourself better.
You will be amazed with the kind of ROI you will get and this Return over Investment will be life long. In November, I ordered ebooks of Rs 9000, I had made a list and I always wanted to buy those books so I did, Rs 9000 is not a big deal for me now, but even in college days, I would had done the same, even if I had to borrow some money from someone (something which I always hated and will never do it again in my life)
Its not only about books, go and attend seminars in your areas of interests and don’t hesitate to pay even if it costs money, there are tons of great audio/video material available on the web, even if it is paid, buy it. many business schools and similar colleges offer shot duration (few weeks) programs, join them.
You can always invest 50k later, say after 3 months in stocks, Mutual funds, fixed deposit or to buy gold and it will make little difference in return so why do it now, when you can put your money on yourself to get much higher returns and that too, life long.