With Christmas festivities getting over, it is time to plan for new investments in 2013. The seeming revival in the stock markets speaks good for the investors, but is it for real ? The surge in the stocks seem to be liquidity driven rally that has been primarily driven by FII inflows. The obvious question in such circumstances is if the stock market will have an upward surge from here.
The answer here is a big yes. Equity is always known to bounce back smartly and in a quick time frame. Investors MF portfolios are also showing 8 to 12 percent returns.
This brings us to the obvious question that what should be the investors strategy in 2013, so that they can have a worthy return on their investments. Below are listed some of the options that investors need to consider to ensure that they make money from the investments in 2013.
Pick up your options from the lot and make your future secure.
1.) Debt instruments
Interest rates are at its peak these days. If you are considering to allocating to debt, this is the best time to do so. The returns being offered in the current scenario are worthy enough. Bank fixed deposits are offering from amongst 9.25 percent to about 10 percent for one to five year tenure.
This can only come down from the present figure and the best time to lock in on these rates is now. Retail investors can look forward to tax free bonds that are offering 7.7 to 7.8 percent for a tenure varying between 10 to 15 years. Tax free returns for a longer quarter at this rates are attractive enough and this option needs to be on your radar. For better returns, you should invest in the first month of 2013 only as this will allow you to capture better rates.
2.) Gold investments
Gold has always been considered a worthy investment. Considering the rate at which gold prices are going up, 2013 seems to be the perfect time for investing in gold. Moreover, gold has given great returns in rupees, though returns in dollars are not that impressive. Keep the exposure limited to 5 to 10 percent of the portfolio and invest on a regular basis in gold in 2013. Invest in gold and reap the benefits.
3.) Property investments
Property is another worthy investment option that should be considered in 2013. Many investors are pooling money from other sources and investing the same in property. If you are living in any of the two tier or three tier cities in India or any other Asian country, investing in property should be your top priority in 2013. Metro cities as New Delhi, Mumbai, Chennai and Bangalore have seen quality rise in property prices in 2012 and prices are set to remain stable till the third quarter of 2013. If wanting to invest in property in metro cities, waiting till the last quarter of 2013 can bring good results.
4.) Equity investments
Equity investments also need to be considered in 2013. Money needs to be invested in equity on a systematic basis. Long term outlook for the equity sector is bullish and you should consider investing in the same.
5.) Invest in silver
Silver has been providing good returns to investors in the last five years. This trend is set to continue and in case you are looking for worthy returns in the coming years, investing in silver is a great idea.
6.) Invest in IPOs
IPOs have been consistently providing excellent returns up to about 50 percent. This trend is expected to continue in 2013 and investors should look forward to investing in IPOs in 2013 for worthy returns.
7.) Look for dividend growth options
When considering this option, look for companies that have a record of dividend growth. Companies that have a higher share of dividend growth are able to generate large amount of cash that can be paid to the share holders.
8.) Technology stocks are up
Technology stocks were under pressure in 2012 but this sector’s exposure to non US market has worked in its favor. As technology companies have stronger cash flow, these pay better dividends. 2013 seems to be a perfect beginning for investors who wish to earn an extra buck as the sector seems to be opening up to the idea of having investments flowing in. Consider the above listed options for investment in 2013 and you are sure to make a worthy gain, simultaneously ensuring a better future for yourself and your family alike.
Brianne is a blogger by profession. She loves writing traveling and reading books. She contributes for World Financial Group. Find here her contribution for World Financial Group.