What should you invest this year? This blog will tell you about all investment options in 2023 like mutual funds, stocks, p2p lending, etc. Find out how you can invest in the best investment options in 2023 using Cube.
April 18, 2024
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The advent of a new year always brings hope, dreams and new year resolutions. For some, these resolutions might include going to the gym. For others, it might involve becoming a serious investor.
If you’re a new investor who wants to understand more about investment options in 2023 in India or a seasoned investor trying to diversify their portfolio, this blog is for you.
Best Investment Options In 2023
1. Equity mutual funds
Equity mutual funds invest in stocks and shares of different companies. The fund manager will invest 60% or more of the equity fund’s capital in stocks.
The remaining capital can be invested in debt and money market securities. Equity mutual funds are divided into 4 categories based on market capitalization:
An equity mutual fund is a long term investment option that has the potential to deliver lucrative returns over a 5+ year period. It offers the magic of compounding that is crucial to generating returns.
Equity mutual funds can be one of the best investment options in 2023 due to benefits like a low expense ratio, tax breaks, flexibility, etc. You can invest in equity mutual funds for as low as ₹1000 on the Cube Wealth app.
The best equity funds, like the ones recommended by Cube’s advisor, Wealth First, are known to give returns that range from 9-15% over the long term.
Watch this video to know more about Cube’s advisors
Here’s a sneak peek into the equity mutual funds currently being recommended on the Cube Wealth App:
Note: Facts & figures are as of 06-01-2021. While we update our blogs regularly, download the Cube Wealth app for the latest information on investment options.
2. Indian Stocks
If you hear an investor saying they just bought a stock, it means that they invested in a publicly-traded company and got a share of the business in return.
The perks of investing in direct equity (stocks) include owning a piece of a company, liquidity, dividends, and more. Stocks are divided into 3 categories based on market capitalization:
Large-cap stocks (blue-chip stocks)
Mid-cap stocks
Small-cap stocks
Similar to equity mutual funds, stocks are long term investments known to deliver lucrative returns over a 5+ year timeline. However, it’s important to know when to buy or sell a stock.
A good advisor can help you invest in the right stocks at the right time. More importantly, world-class stock advisors like Purnartha can tell you when to sell a stock while creating a healthy investment habit.
Watch this video to know how Purnartha and Cube help you invest in the best Indian stocks.
3. Debt mutual funds
A debt mutual fund invests in good debt. The fund manager will use the pooled capital to invest in debt and money market securities like bonds, treasury bills, certificate of deposits, etc.
Debt funds can broadly be divided into:
Liquid funds
Ultra short term funds
Banking and PSU funds
Corporate bond funds
Dynamic bond funds
Money market funds
While a debt fund is not a high octane returns generator like equity funds, you can still expect to get approximately 7-9% over the long term.
Here’s a sneak peek into debt funds currently being recommended by our advisor:
Debt fund name
3-year returns
5-year returns
Axis Liquid Fund
6.10%
6.52%
HDFC Money Market Fund
7.32%
7.17%
ICICI Prudential Corporate Bond Fund
8.91%
8.54%
Note: Facts & figures are as of 06-01-2021. While we update our blogs regularly, download the Cube Wealth app for the latest information on investment options.
Investors prefer debt funds due to their relatively safe nature and the fact that debt funds generate better returns than a bank savings account or fixed deposit.
However, debt funds are market-linked instruments that carry a certain amount of risk. Hence, you should speak to a wealth coach to know if you should invest in debt funds.
Cutting out the intermediary seems to be one of the advantages of the age of technology. Peer to peer lending puts lenders directly in touch with borrowers without traditional intermediaries in the mix.
P2P lending is classified as an alternative investment, an asset class that is gaining popularity. P2P lending can help you generate passive income with relatively better interest rates at a low ticket size.
Watch this video to know more about alternative investment options
However, it’s important to note that you should only trust P2P lending platforms certified by the Reserve Bank of India like Cube’s P2P partners, LiquiLoans and Faircent.
LiquiLoans and Faircent are RBI Certified P2P NBFCs that ensure you lend to thoroughly vetted, creditworthy borrowers. The interest rate you can earn is based on the holding period.
Platform
Liquiloans
Faircent
Holding Period
1 year
2 years
1 year
3 years
XIRR
10%
9.50%
12-14%
12-14%
Note: Facts & figures are as of 06-01-2021. While we update our blogs regularly, download the Cube Wealth app for the latest information on investment options.
Digital gold is similar to physical gold investments and is ideal for investors looking to add gold to their portfolio without the baggage of making charges and security concerns.
When you invest in digital gold by Safegold on Cube, your investment is backed by real 24K gold that is stored in a safe and secure vault under your name by Brinks.
Digital gold by Safegold comes with assured purity of 99.99% (9999 purity). You can get the gold delivered to your house in the form of gold bars. Minting charges may apply.
Speak to a wealth coach today to know if you should invest in digital gold by Safegold using Cube.
It’s possible for Indian investors to diversify your investments geographically with 3 investment options. The main idea behind geographical diversification is to:
Leverage the value of foreign currencies and markets
Offset volatility of one market with the stability of another
Participate in the growth of global companies
1. US Stocks & ETFs
You can invest in US stocks listed on NASDAQ, S&P 500, and DOW from India. The RBI permits investments up to $250,000 (₹1,82,84,275) in the US markets as per the Liberalised Remittance Scheme.
The US market dwarfs every other stock market in the world in terms of market capitalization. Moreover, investors prefer the safety net that the dollar offers since it is one of the strongest currencies in the world.
Another reason for investing in the US markets is the fact that you can own a piece of the biggest companies in the world like Apple, Microsoft, Tesla, Alibaba, Amazon, Facebook, and more.
An app like Cube makes the investment process simple, honest and transparent so that you can get the best out of your US stock investments. Cube allows you to buy US stocks in 2 ways:
Indian investors can participate in the growth of several stock markets from around the world. Cube helps you invest in the best global stocks with advice from RIA, Rick Holbrook.
Diversifying globally has its advantages since different markets can offer different growth opportunities and trade using different currencies.
This can be used to offset any loss experienced by investors in the Indian stock market. You can invest in global markets for as little as $1 using the Cube Wealth app.
However, international investments carry their own risks so speak to a wealth coach before buying any global stock.
3. International & Global Mutual Funds
International mutual funds invest in countries like the US, Japan, Germany, etc. but not in India. Global mutual funds invest in foreign countries and also in India.
Since these are international investments, international and global funds carry risks related to currency, geopolitics, etc. Speak to a wealth coach before investing in international funds and global funds.
Here’s a snippet of the international and global funds currently being recommended by Wealth First:
Fund Name
3 Year Returns
5 Year Returns
PGIM India Global Equity Opportunities Fund
30.43%
21.16%
Franklin India Feeder - Franklin U.S. Opportunities Fund
26.07%
19.42%
Note: Facts & figures are as of 06-01-2021. While we update our blogs regularly, download the Cube Wealth app for the latest information on investment options.
How To Invest In The Best Investment Options in 2023?
Cube helps you invest in the best investment options with advice from high quality advisors like Wealth First, Purnartha, and RIA Rick Holbrook.
The Cube Wealth app simplifies wealth creation in an honest and transparent way with a focus on quality investments based on every investor’s goals.
You can speak to a wealth coach to understand your risk profile. After that, our wealth coaches will help you invest in options that can work for you based on your profile.
The Cube Wealth app is intuitive and easy to use. Download it today to explore the best investment options. If you’re not much of a reader, watch this video to know more about using Cube.
Snapshot Of Returns Of Investment Options
Investment Option
Average Returns
Timeframe
Equity mutual funds
9-15%
Long term
Indian stocks
12-16%
Long term
Debt mutual funds
7-9%
Short-long term
P2P Lending
9-14%
Short-long term
Digital gold
2-5%
Long term
US stocks
8-10%
Long term
Global stocks
6-7%
Long term
International & Global mutual funds
15-20%
Long term
Note: The above mentioned average returns are based on publicly available data as on 06-01-2021. Check the Cube Wealth app or speak to a wealth coach for the latest data.
What if we told you there's a list of 10 best passive income ideas for 2021? Read this to know more.
FAQs
1. What is the best investment in 2023?
Ans. The best investment is the one that works best for you. Since your investment portfolio is intertwined with your financial goals, it’s important to seek sound financial advice from a wealth coach.
2. What investment opportunities are available?
Ans. An investment app like Cube helps you invest in assets like:
Mutual funds
Indian stocks
US stocks, mutual funds & ETFs
P2P lending
Digital gold
Global stocks, mutual funds & ETFs
3. What are the best investment options for 3-6 months?
Ans. Investors prefer certain debt funds like liquid funds and ultra short term funds for an investment period of 3-6 months. However, you must speak to a wealth coach to know if you should invest in short term investment options like liquid and ultra short term funds.
4. Can I invest in foreign mutual funds from India?
Ans. Yes, you can invest in foreign mutual funds from India using an app like Cube. The Cube Wealth app helps you invest in US and Global mutual funds with advice from RIA, Rick Holbrook.
Conclusion
In 2023, exploring investment options is essential for anyone looking to grow their wealth, meet financial goals, and secure their financial future. The array of investment choices available offers individuals the opportunity to create a diversified portfolio tailored to their specific objectives and risk tolerance.
Popular investment options for 2023 encompass a wide range of asset classes, from stocks and bonds to mutual funds, real estate, and even emerging trends like cryptocurrencies. Each of these options has its own risk-return profile, making it crucial to select investments that align with your financial goals.
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
