As much as we hate to say it, another year goes by where the same old slack government policies and fluctuating markets led to another disappointing year, and to cap that off, demonetization at the back end of last year proved to be the final nail in the coffin. This leaves us not knowing what to expect from 2018 as the economy tries to stabilize and remain stable in the midst of any forthcoming cabinet bombshell. Equity is expected to hit 54k by 2018 but doesn’t go overboard just yet. Understanding the difference between investment and speculation is the cornerstone of investment. Here’s our guide on what to expect from the different investment assets in 2018.
Stocks are a funny old game. We turn to the stock market as soon as we start running out of ideas on how to invest our money in other words, we turn to them when we start becoming rich. They are expected to grow considerably over the next year according to a popular prediction that runs around this time of the year. They have delivered a solid 7% return annually over the past century but the future looks uncertain. William Baldwin of Forbes predicts that equity would not be able to return even half of its historical return. Add that to the high volatility this asset offers along with the knowledge you require to trade, we suggest caution.
A better alternative to stocks, mutual funds are a tad bit more reliable. They can also cut the transaction costs as one has the advantage of stock size. Also, diversification helps to average out the losses sustained although it leaves the fund manager in a difficult position. The ever-present problem of poor savings is expected to continue in the mutual funds’ industry too. Additionally, it requires a lot of patience with mutual funds as they take years to grow to a reasonable level.
You could invest in so many other assets that it would be 2018 already if we start naming them all. To strip it down to the essence of it, we suggest you go for a relatively uncharted market. P2P lending in India is still unknown to so many, that it almost baffles us. It has been so successful in the West that it has been predicted to take over traditional financial institutions in a decade. It’s hard to argue given that P2P lending platforms provide an average of 10-12% p.a. returns with zero market volatility. If you’re good with judging people (not literally) and want quick returns, we’d suggest you to go and check out LenDenClub, the best P2P lending platform in India.
To know how to start your investment in a P2P lending platform, click here.
Read our article on how to build a better portfolio from p2p lending.
“In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks “- Mark Zuckerberg.