Monday, May 19, 2008

What should Indians invest in?

Many people look at investment options as : Gold, Real Estate, Stocks. All these likely to give hefty returns in a bull market and stocks are can also depreciate fast if you bought them during bull phase and sold during bear phase.

The investors should ask a fundamental question of what rate of return they should expect from the investment.

While investing in Real Estate (Land or houses), one should ask what would drive prices in the area to go up? Is the area going to see any economic development? If so, in howmany months or years? What is the current price and likely appreciation in the future. If there is no major economic activity, the likelihood of appreiciation is less in the said area.

Please ensure that the land or house you are investing in does not have encumbrances and there is a good access way to the site.

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