Your money this week: Should you bet on stocks, debt, gold or real estate in Samvat 2074

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Moneycontrol News

The run-up to Diwali 2017 saw the stock markets touch new highs with Sensex and Nifty touching their all-time highs of 32,633.64 and 10,230.85, respectively this week. Though the markets have slipped a bit since then, the new levels may cause anxiety among the investing community on how to deal with the high stock valuations.

Are these times to be cautious on equities or is there still some steam left in the market to take them higher? Should one be cautions and move some of their investments into the less risky fixed income instruments? How does gold fare as a hedging option in the context of emerging geopolitical risks that threaten to spook the market any moment?

In our Diwali 2017: Should you invest in stocks, gold or fixed income?, we bring to you views of top investment experts on how to position their portfolio at the beginning of the new Samvat year.

The consensus appears to be that equities remain the best bet for the long term while investors can consider short term portfolio reshuffle to minimise risk.

How will gold, one of the favourite asset classes during the festive season, fare amid the current investment canvas? Is the yellow metal a good investment option and should you go for physical gold or other instruments such as Sovereign Gold Bond (SGBs) to increase your holding?

Read this Dhanteras 2017: Planning to buy gold? Here’s how to invest wisely to know about gold’s outlook and the best way to approach purchase of the yellow metal.

If you are looking to buy real estate, you may be tempted to go and seal a deal given the festive season offers and the discount baits being put out by builders.

While the real estate sector in India is set for good growth with RERA in place providing confidence to buyers, freebies and discounts need to be analysed well before going in for the purchase. Not all such enticements are good for the homebuyer. It may not be wise to base your purchase discount purely on the lure of the festive season offers.

Read our story It’s raining discounts, freebies this festive season – homebuyers must choose wisely to arm yourself with the knowledge of how to approach the freebies and discounts.

Coming back to investing in the capital market, if you are not one of the savvy investors having knowledge of stocks and market movements, it is best to approach the market through mutual funds. In fact, more and more Indian investors are taking this route. An ICRA report points out that in September 2017, Equity funds (including ELSS) witnessed monthly net inflow at Rs. 18,936 crores, a growth of 406% YoY.

Mutual funds have offerings to suit all investor, whatever be their risk-taking ability and financial goals. If you are wondering what are the reasons that should prompt you to opt for the mutual fund route read 6 reasons why you should invest in mutual funds to create wealth where we update you one the benefits of handing over the money to trained professionals.’

The best part about mutual funds investing perhaps is that you can gain from the market even with as little as Rs 500 to invest. All you need is to identify your investment objective and your long-term financial goal, which might be education or wedding of your child, or retirement planning for your own self.

Read Want to build wealth with small amount of saving? to know how to create a big corpus using small amounts of money invested in a systematic manner.