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Looking For Investment Options In 2021?

What should you invest this year? This blog will tell you about all investment options in 2021 like mutual funds, stocks, p2p lending, etc. Find out how you can invest in the best investment options in 2021 using Cube.
January 6, 2021

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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 2021 in India or a seasoned investor trying to diversify their portfolio, this blog is for you.  


Best Investment Options In 2021


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.   


Read this blog to know more about the magic of compounding.  


Equity mutual funds can be one of the best investment options in 2021 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:

 

Equity Fund Name

3 Year Returns

5 Year Returns

Motilal Oswal Focused 25 Fund

9.26%

11.46%

Axis Focused 25 Fund

11.23%

15.12%

Kotak Emerging Equity Fund

5.86%

12.58%

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. 


In general, liquid and ultra short term funds are considered to be the safest mutual funds in India. Read this blog to get a list of the top 10 liquid funds for 2021.


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.   


Read this to know how debt mutual funds can add value to your portfolio. 


4. P2P Lending


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.


Read this in-depth guide to know more about P2P lending in India. 


5. Digital Gold


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. 


Read this blog to know more about adding gold to your portfolio.


Best International Investment Options In 2021


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:



Speak to a Cube wealth coach to know more about buying US stocks of the best companies from around the world.   


Historical Returns: S&P 500:


 

Year

Average Returns

2010

15.06%

2012

16.00%

2014

13.69%

2016

11.96%

2018

-4.38%

2020

8.94%


Here’s how US stock advice works on the Cube Wealth app

2. Global Stocks & ETFs


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. 


Both funds leverage the potential of markets from across the globe to deliver long term growth by investing in high-quality companies. Read this blog to know more about international and global mutual funds.


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 2021?


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 2021?


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:


  1. Mutual funds
  2. Indian stocks
  3. US stocks, mutual funds & ETFs
  4. P2P lending
  5. Digital gold
  6. 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. 


The best part? You can invest in foreign mutual funds for as little as $1. Download the Cube Wealth app or speak to a wealth coach to know more. 





Shriram Shekhar
Shriram is a Content Marketer at Cube Wealth, the Financial Freedom App with a smart Perfect Portfolio Planner. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. Shriram’s love for philosophy, product development, and empowering people through quality content is what got him to Cube Wealth.

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