The pursuit of higher returns, as the stock market tanks, has investors searching different other investment options outside the conventional bank deposits. One such avenue that has caught the interest of several investors in recent times, especially in the tier-II towns of the South, is the fixed deposits offered by big jewelry chains.
These jewelry chains, mostly in Tamil Nadu and Kerala, have been catching the attention of depositors from smaller investors at interest rates that are 3-5% over bank fixed deposits.
While dozens of cash-hungry companies, especially real estate, have also been offering competitive rates for deposits, investors are cautious of putting money in many of them, as they lack confidence about the safety of these deposits. But these big jewelers, though unregulated, have been able to draw investors to them because of the higher trust in them.
“People perceive investments in deposits of jewelers as ‘safe’ because there is gold involved. Also, this business is all about ‘trust’. While manufacturing companies have defaulted in the past, you would not hear of any defaults from a jeweler,” said a manager at a Kochi-based jewelry chain, which accepts these deposits. There has been no dearth of demand for such deposits because of the amount of unaccounted money present in the system, partly driven by the real estate boom across the country.
4 Comments
The first golden rule of investing is to diversify your portfolio. Even though high paying categories are always lucrative, the risk factors involved are even higher. Direct commodity investment is advisable only for market savvy investors, who keep a close tab on the market. Stocks, bonds etc should be a part of your saving instruments and all of it. Commodity oriented mutual funds and other such indirect investments though are less risky, they are not exactly what we term as ‘user friendly’.So what else is there?For many, real estate investment is an essential part of a well-rounded portfolio. Buying and selling real property, or even long-term owning, has proven to be one of the most profitable and least risky investments available.When it comes to investing in real estates, you will find a wide array of options like property oriented mutual funds, REIT (Real Estate Investment Trusts), and many other types of mortgage backed securities.However, one should keep in mind that they are not “zero risk” affairs - there’s no such thing in investing! Prices fluctuate, relative to other goods and investment channels. But if you educate yourself with basic market laws and have sufficient cash and other liquid assets to be able to hold until the time to sell is right, you’ll never have any reason to regret in making real estate investments a major portion of your portfolio.For more view- realtydigest.blogspot.com
Investment in real estate is an topic that has it fair share of discussion in the past. Since the real estate market has been volatile in the last few months, gold has turned out to be an option for investment since gold stocks are doing extremely well in the global market.
Yes every person wants to invest their money to be in any stock level which want to be increase in the coming future level which is to be beneficial for them.
As stock market slumped very fast it will lead to investment in other sectors. Now property market has very bright chance to get funds because stock market in decreasing because of high Crude oil rates and high inflation rate.