Sunny's Blog: The best investment option for 2011

Saturday, May 21, 2011

The best investment option for 2011

If the stock market in 2009 was the year 2010 was the year of real estate - especially residential real estate market segment. 100% returns in residential real estate market if they invested in late 2009 - Investors have found about 50. On the other hand, in 2010, the stock market had a return of 18%, gold 30% and fixed income asset class has a return of 6-12% have a poor return. Please note that the 2010 a year of high single-digit inflation and inflation had been the border between two points. So, low and middle income investors, the time was tough that they stuck their money in bank fixed deposits (which is just a return of 6% to 12% of a deposit which has a return compared to certain company has was) and was not the stock market, gold, mutual funds or real estate asset classes, which are typically high net worth investors preferred to take the risk. So, the rich become richer and moving between rich and poor divide.

Therefore, investors see how 2011 and are the best asset classes for investment which in 2011?

India's savings rate to be high just behind China, continues. Their parents and relatives or for further investment - In addition, the NRIs are sending money back home. China is the same as that found the gold and real estate prices in both countries. The two countries have taken steps to firm interest rates to cool off real estate prices. So, we expect both gold and real estate to go up as high as last year but could not return. The global economy is getting more stable and the risk of double dip recession is almost gone. If the gold as a safe haven by many investors used to hedge against inflation to think again about their approach may have. We expect gold to stabilize in 2011.

Investors in the property market as a hard choice residential real estate prices have already gone up the roof are faced with. Prices either have to wait and see faced with a dilemma have not invested or further off the Reserve Bank to intervene to cool real estate prices expected to go. RBI measures this year that led to higher interest rates was announced. Investors look at commercial real estate section in 2010 as prices have risen only marginally, and rental rates are improving and are expected to improve further in 2011 may. Prices of plots and houses built in metropolitan areas has doubled last year but only 10-20% of commercial office space or stores has increased. Fare reform in 2011 as the global economy will stabilize. Many of the companies in all sectors in India will lead to expansion - which will require office space for its employees. Please note that commercial office space there, but now prices are firming as surplus and we hope to go up further in 2011. An asset class which is growing in the state and it will give good returns in the investment! NRIs investing in both residential and commercial real estate if they could take on investment with long time horizons.

Banks increased their deposit rates. So, a lot of banks now are offering 9% for senior citizens. We recommend a mix of bank fixed deposits, State Bank of India and those people interested in fixed income asset class for investors like company fixed deposits, bonds. Mix ensures security and bank a higher return than fixed deposits, only banking fetches.

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