Crypto Investing
16 Dec 2020

5 Quick Return Investment Options In India

Nisha Ramesh

Making money in the modern world is not as complicated as it used to be.

One way of making money is what most people do – Employment.

You can work hard from morning to evening and add more value to your employer. Few other people go all in and start their own business, this may be an excellent way to make money, but it takes some time to pick up. 

There is one other way to make some quick bucks:

And, it does not even require you to quit your job or leave your business i.e Investments.

Quick Return Investment Options In India

Yes, the top 1% of the globe got to that position not by working for money but by making their money work for them. Here is a list of investments options that will put your money to work and gain quick returns for you.

1. Initial Public Offering (IPO’s)

As a way of raising capital from the public, some large and well-established companies are allowed to offer their stocks to the public by listing it in exchanges like BSE and NSE.

The first-ever stocks are offered to the public by these companies are called as Initial Public Offering.

The deal here is that:

IPO’s are usually offered at a discounted price, which is often the lowest price at which you can invest in a new company that has immense potential. Once the IPO is announced, the company’s stock price tends to skyrocket for a window of 3-6 months after which it will stabilise.

If you purchase stocks at an IPO and sell it in a short period, there are high chances of making good money quickly.

There are significant risks involved too, for example, if a company does not take off well, then your investment may be exposed to the risk of loss. 

2. Trade Cryptocurrencies

Cryptocurrencies are digital currencies that work on blockchain technology.

We can use it as a medium of exchange as well as an investment. High demand and lower supply of most of the cryptocurrencies, make this market highly volatile.

Meaning, the prices of the currency fluctuate every minute. 

The volatility of this market has made day trading in cryptocurrencies highly popular. Trading involves speculating on the price movements of the cryptocurrencies.

You can start trading by buying and selling cryptocurrencies via an exchange.

The high volatility and demand make cryptocurrencies suitable for day trading. 

For example: 

As I write this article (6th Nov 2020), the price of Ethereum is Rs 32,892.86. If I had purchased it last week its price was close to ~ Rs 28,500 and sold it now; I would have earned a profit of ~ Rs 3,500 in one week. 

Though there are chances of yielding high returns, there is a risk of loss in trading. It is best to study the market and price movements before you start trading for minimal risk exposure. 

But on the flip side, let me also tell that cryptocurrencies market dipped heavily in March 2020, with Bitcoin- the most popular currency dipping more than 25% in a day, so know these facts before deciding how much you want invest in this asset class.

Invest In Crypto With Just Rs.100

3. Ultra Short term Mutual Funds

Mutual funds are a type of investment where a pool of the investor’s funds are collectively invested in securities such as stocks and/or bonds.

Certain AMC’s (Asset Management Companies) offer mutual funds that have a smaller maturity period of around 3-6 months. These funds are called Ultra short term mutual funds.

These funds invest in debt instruments that generate a fixed income for the short term. The minimal maturity period ensures that the fluctuations in interest rates do not make an impact on its returns.

UST Mutual funds carry low risk.

Though they might be less risky than the other options listed above, the returns from such funds can also be significantly lower than the rest.

4. Peer-Peer Lending

P-P lending means lending a certain amount to borrowers who require funds online.

It is an old bride dressed in new clothes. Just like you borrow or lend money directly to individuals you know, P-P lending involves giving loans to strangers at an agreed rate of interest. 

Usually, borrowers who require a short term loan can borrow your investment through a P-P platform.

The interest rates may change depending on the demand but are often somewhere between 15%-20%. The borrowers pay the interest periodically and return the principal within the agreed time. 

This is one quick way to make money as well as earn a regular income for a short time. 

However, these investments come with the risk of not recovering your capital. If the borrower fails to repay the principal amount, it may lead to complications.

It is good to do your research before opting for this.

#5. Invoice Discounting

Invoice discounting is quite a new concept in the Indian market.

It involves investors buying invoices from smaller companies at a discounted price and earning a profit when the purchaser repays the invoice in full. 

So, usually, when companies raise an invoice to big corporates, it takes about 30-120 days for them to process it and make the payment. This hinders with the working capital flow of the seller.

It works like this:

When an invoice is discounted, the investor pays the seller at a discounted rate; this solves their operating capital problem.

Once the corporate makes payment after processing the invoice, it is received by the investor in full amount. The difference between the discounted rate of purchase of invoice and the actual invoice amount serves as a profit for the investor. 

Such investments carry a risk of personal guarantee and client disputes which can be hazardous for your investment. Also, the initial investment requires a considerable sum of money. 

Bottom Line

When we say quickly earn money, the period can range anywhere within one week to 6 months.

There is no one size fits all option when it comes to investments. Hence, we have picked each investment listed above from various categories such as risk, time horizon, capital requirement etc. 

It is now in your hands to carefully analyse your investment profile and decide which option suits you the best. 

Happy Investing !!

[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.

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Nisha Ramesh

Content Writer

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