View Full Version : Less risk more returns

17th December 2008, 01:39
The easiest way of determining how you should invest your money is to look at the pros and cons of the various possibilities. There are three obvious ways of investing your money ó placing it in a bank account, or investing it in shares or property. Which one will be the most suitable for you will depend on your current and expected future financial position. Itís quite clear that leaving your money in the bank is not likely to be the best option, as returns are not nearly as good compared to that of the other two.

Investment in shares allows you to disperse your investment so that risk is reduced. As compared to property, comparatively small sums of money can be invested; one can afford to have shares in a number of different companies. Whereas, property investment in a multiple homes requires large sums of money. The main reason for investing in houses over units is that houses have a greater potential for growth, because a greater content of land is attached to houses. This occurs because land follows the principle of supply and demand, and since developable land is in short supply, good growth can be expected. With apartments however, a huge capacity still exists to build more, as low density homes can be knocked down and replaced with large unit blocks.

Houses are usually the better investment as they are generally less risky and provide better capital returns. The amount required for buying a house in most cases is considerably huge and therefore not always an option. As a resident of Kerala, if you do decide to invest in Apartments in Cochin (http://www.anzeraproperties.com/), you can reduce the risks and get good returns by researching and selecting apartments that have unique desirable attributes with regards to location and value for money.