Best investment ideas for three years right now according to an expert

Take a look at best investment options for three years according to an expert.

You may have heard multiple times that investing for a longer duration is more beneficial than short-term investments. This is true due to the power of compounding that your long-term investment enjoys. There are several options for making long-term investments. 

But, what if you want to invest only for a shorter duration, say just three years? What if you just want to park your money for three years to meet an important financial goal? You may like to know about good investment options for three years in the current time of uncertainty and the pandemic.

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According to Rachit Chawla, CEO and Founder, Finway FSC, investment in real estate, equity market and debt instruments could be beneficial in three years. 

Talking about investment in real estate, Chawla said that property prices have remained stagnant for several years. Hence, they are bound to increase. 

“The property prices in India have remained stagnant for many years, so they are bound to increase. Moreover, there are a lot of foreign investments that will get pumped into India. When they are pumped in, the liquidity will increase and consumer demand will increase with it. When demand increases, automatically, the prices increase as well. That will give you good appreciation,” Chawla told FE Online. 

After real estate, Chawla suggested investment in equities in India could be another good option as everybody around the globe is bullish for the country. 

“Everybody around the globe is very bullish for India; so all the companies are skilling up their operations also. India is undoubtedly their preferred destination post-Covid. Hence, equities can be a good option, because companies will have more sales and more profitability, and when there is more profitability, earning per share increases. Their share price will automatically increase because fundamentally, they will become stronger,” he said. 

Investment in equities comes with certain risks. Hence, for the risk-averse investors, Chawla suggested a third option – Debt. 

“Though equity and real estate offer higher returns, they are still a risky option. Hence, it is always better to go for debt as a third option,” he said. 

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