Best Investment Options – Where to invest money in India? Which are the best investment options in India? An average Indians always search for the best investment options for the investment. So, today let’s try to get an answer of this commonly asked question. A simple answer to this question is the stock market. The stock market is generating enormous wealth for the investors and expected to generate the same in future. We have already seen an example of stocks that have generated magnificent wealth for the investors.
Best Investment Options Startup and Equity
Equity Stock Market for wealth generation
- As per an estimate, the average CAGR return of the Sensex in the last 30 years is 17%. The value of Sensex has grown to 100 times in last 30 years.
- If you have investedin Infosys IPO in the year 1993 you would have got 100 shares by an investment of 9500 Rs. After 6 bonus issues and 1 stock split, you would be holding 25,600 shares of Infosys today. The value of these stocks would be Rs 3 Crore (excluding dividend).
- Another example of generation of wealth using stock market is long term investment and trading. You might not be aware that Rakesh jhunjhunwala has made a stock portfolio of 11970 Cr from small investment capital of 5000 Rs/-.
The stock market is one of the best investment options. However, investment in a startup is the latest trend. Investing in early-stage startups is truly an art that can generate very good returns for you.
Startup for wealth generation
- Startup companies are like rising sun with huge upside potential and increase in valuation. Whatsapp is startup example which was acquired by Facebook in February 2014 for US$19 Billion.No one has imagined this high valuation of Whatsapp.
- A Small startup like Alibaba has made Jack Ma richest businessman in China. So, that is the power of startup.
- Another example is Flipkart. You must have heard the story of 400 employees becoming crorepati by opting ESOP option in Flipkart.
- Ratan Tata Invested 5 Cr in e-commerce company Snapdeal via private equity in Aug 2014. Snapdeal was valued at $1 billon when Ratan Tata invested. The current valuation of Snapdeal is $5 billon.
A Valuation of startup companies are increasing day by day. As per me Investing in startups is what many intelligent, successful, wealthy individuals do when they have to put their own money to work. So, Investment in a startup is another best investment option in India.
How to Invest in Startup?
- Find out startup you are interested in investment. Shortlist companies based on concept, innovation, competition, potential upside & social value.
- Find out contact detail of founder and directly approach them with your plans.
- Another option is to connect to founder via Angle Investment network.
- Generally, they accept your proposal as they are in need of money for the business expansion.
- You can have one time or regular investment in the startup.
- You will receive preferred stock, or convertible notes or SAFE notes as a part of an investment in the startup.
How to take back money from Startup?
Following are preferred method to take back money from Startup Company.
- The Startup Goes for IPO
- Selling your investment to another investor
- The startup acquired by other company (E.g Whatsapp)
- Profit share from the startup company
Points to remember before making Investment in Startup
- Invest in what you understand
- Invest in startup with monopoly business and huge upside potential
- Diversify across different industries
- Include exit clause while making investment to safeguard your money
So, make your money to work now by investing in Best Investment options Startup and Equity!