Though traditional investments like bank deposit, stocks, bonds, mutual funds and gold looks attractive, none of them match the “Cost of escalation” per annum which is around 20%, moreover some of them involves risks. Most of them lost its charm and the awareness about it is increasing among NRIs due to availability of information online and their research habit.

Bank Deposit was an attractive investment option during late 90s but it lost its charm

• 13% return per annum in 1995
• 6.5% return per annum in 2020
• A depositor in a bank is insured for max. Rs.1 lakh only

Stocks

• Currently 5 year market returns is around 12.5%
• No assured return
• Chances of even losing the capital

Equity Mutual Funds

• Current 5 year market return is less than 20%
• High risk and High return
• Mutual fund investments are subject to Market Risks.

Gold

• Rs. 2640 / g in 2011
• Rs. 4200 / g in 2020, about 8% return / Annum
• Making Charge & Wastage during purchase and sale kills the return further

The real estate market depends on economy condition and sector specific performance. It was on a boom between 2000 and 2015. Now it lost its charm too except in some niche areas. For example

Anna Nagar, Chennai (Apartment)

Rs. 14250 / Sq ft (Max) in 2015

Rs. 12600 / Sq ft (Max) in Dec 2019