Are you Ready to take Risks? Here are the Five High Stake Investment Options in India
Do you have nerves of steel? Can you take a beating and still walk away unscathed? Did you know that you could make a lot of money if you have these qualities? Yes it’s true. There are investment options in India, which we can provide returns that are sometimes unlimited! However, they are highly risky and fit for persons who could stand the immense pressure.
The quickest way to get the highest returns is by trading in Stock Market, Commodity Market and Forex Market, which are risky. Then there are the other high return options which might not be the quickest way to make money, but it is surely safe. They are mutual funds, real estate and derivatives.
Quick Ways to Make Money in India
Stock Market: To make big money on stock market you need to know how to perform better than the market. It means that if the index rose by 20% within 6 months your portfolio must rise by more than this rate. Only trading on sure stocks is the way to do it. However, don’t go for pure gambling without any ounce of knowledge regarding the company you are trading in.
Within a year a market may rise rapidly, come back to the position it was, or slip down further. However, we must see to that our portfolio is always rising. Some say it is better to follow the market, but in that case what is the use in taking the huge risk. If you are willing to take risks then try to beat the market. However, don’t over do it, because sometimes it is wise to learn from the market movements.
Never trade too much. It is only going to profit your broker. Responsible trading is called speculation. Speculation is not gambling and it is sure to give you good profit within a short time provided you do your homework well. That means you must learn about the company you are trading in.
Commodity Market: This is a highly inflammable market. There is potential to make big money overnight and also the potential to wipe all our investments in one moment. During 2010-11 commodity market turnover rose by 50% from the previous year with a whopping Rs. 112.52 trillion.
Commodity markets trade in gold, copper, gasoline and agri-products. They are future contracts which promise the seller to buy their commodity at a specified price after a stipulated time. Some of the Commodity brouses are the NCDEX, MCX etc.
Individual commodities like gold, silver or agri products like wheat, coffee, jute etc. can rise rapidly and fall suddenly. The volatility is very huge. Trading in commodities after thorough study can bring in huge returns.
Forex Market: This market deals in currency trading. It depends on the valuation of Indian Rupee with some of the international currencies. At present trading is with 4 international currencies which are the U.S. Dollar, the Euro, Yen, and the British Pound.
MCX-SX is the exchange for trading in currencies, which was started in 2008. The average daily turnover was Rs 18, 359 crore in March of 2011. Bulk investments are needed to make huge profits in currency trading. This is one disadvantage of currency trading.
Ways to Make Better Returns Safely
Mutual Fund: We have discussed many times about the working of mutual funds; why it is safe to invest in it than investing in 
stock markets directly. They provide returns which are more than 20%. Mutual funds invest in stock markets and are managed by people who know it well. Therefore, they play it safe and won’t promise us more than a fixed amount of profit.
Real Estate: Investing in property by buying and value addition of that property could fetch us a handsome 
return in a limited time. The rate of return is around 30%. However, if our property is located near a place where the next big thing in business or infrastructure is coming up then profits could exceed that limit. One important benefit in investing in real estate is that property always has an intrinsic value, which will never go below a certain price.
It is estimated that the real estate sector will grow to $90 billion by 2015. About 80% of the investments come from housing and 20% investments come from commercial buildings.
When you make money within a very small time span, you must know two things. The first thing is the Short Term Capital Gains Tax. The income that you get within a year is taxed according to the tax rules in India. Short term capital gain tax attracts 15% of the returns you get. Keep this in mind when going for returns in the short run.
Now that you get an idea to make money in the short run why wait?
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[...] rest 90%) do not invest in them because they fear that it is a highly risky option. We agree that mutual funds are a risky business, but most of its risk is exaggerated by those who clearly do not understand about what it really [...]