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Best Investment Options 2025 | 6 Best Investment Ideas

Investment

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December 29, 2020

Which are the best investment options for 2025? Stock Market, Mutual Funds, ELSS, Real Estate, Gold, Fixed Deposit, PPF, or NPS. Well, there are multiple investment options where investors can invest their money. But, most of the time it is seen that the Investor gets confused in selecting the best investment option that gives higher returns. To help investors, I will share the 6 Best Investment Ideas in this post.

Please note that the investment options given below are high-return investment options for high-risk investors. Please consult your Financial Planner or expert before making any investments.

best investment option best investment ideas

Best Investment Options 2025 | 6 Best Investment Ideas

#1 Self Investment – Learning High Income Skills

Self Investment is One of the best investments ever. Self Investment beats all other investment classes. The learning you get by self-investment stays with you forever. It gives returns multiple times. This investment can not be taxed.

Every year you should invest at least 20% of your earnings in yourself. You should learn high-income skills. High-income skills will pay you money forever. So, the first best investment option in the year 2025 is self-investment.

#2 Equity Investment

Stock Market is the first choice when it comes to the best investment options for 2025. It is an investment option for high-risk investors. The stock market has generated magnificent returns for the investors in 2023 and is expected to give good returns in 2025 also. Few compelling reasons are given below.

Boost to economy

Positive news of vaccination and the expected vanishing of the COVID-19 pandemic will boost the economy. This will benefit hotels, airlines, restaurants, energy, real estate, and retail business. It will also reduce unemployment and result in increased spending and investment activity by domestic investors.

Boost in the Corporate earnings

Boost in the economy and favorable government policy will help in increasing corporate earnings. An increase in the earnings of corporate is good for the stock market. Strong corporate earnings will surely enhance investor confidence and lead to an increase in stock values.

Please note that the stock market requires a lot of knowledge. You need to analyze the stock before investing. You can expect 10-15% returns in the long to medium term from the stock market. You can check out VectorVest to learn more about investing.

#3 Mutual Funds

Mutual Funds investment is in second place when it comes to the best investment options of 2025. Mutual funds give lower returns compared to the stock market but it comes with diversification opportunities. In volatile market conditions, Mutual funds SIP helps investors from price movements. It is high-risk high rewards investment option. Reasons to invest in a mutual fund is given below.

Stock Market performance

Looking at trends and positive news it is but natural that the stock market is likely to give better returns to investors in 2025. As the stock market will give better returns investors can expect growth in the equity-based mutual funds.

You can expect 10-12% returns in good mutual funds. It is advisable to invest in mutual funds via SIP route.

#4 Gold

Gold yellow shining metal is considered safe heaven by many investors. Gold has generated consistently good returns for the investors. The investor should at least keep 2-5% of their investment in gold. Gold is high-risk high return investment option. The reason to invest in gold for the year 2025 are given below.

Historical returns

Historically gold has turned out to be a very good appreciating asset. In the year 2020, gold has generated 28% returns for the investors. In last 10 years (2011-2020) gold have generated 87% returns for the investor. Gold has generated negative returns only for twice in the last 10 years.

Other Reasons

Covid-19 is not over yet. In a few countries still lockdown condition exists. A new strain of COVID virus may create more issue. Under the pandemic situation, Gold is best and safe investment option. Gold is a comparatively safe investment option for the investor.

#5 Real Estate

Real Estate is also one of the best and profitable investment option for 2025. Stock market give appreciation and dividend. Similarly, real estate generates rental income as well as appreciation over the years.

Due to less liquidity in the market properties are available at lower price. Home loan rates are low and favorable for the investors.

#6 Venture Capital

Venture capital investment means investment in the startup. If you have lot of money you can explore investing money in startup in the year 2025. It is best investment option only for the rich investor who have surplus money. It is borrowing given to new business. The new business may perform or may not perform. This means venture capital investment should be done after doing due diligence and proper research.

Over to you

To recap the best investment options of 2025 are equity, mutual fund, gold, real estate and venture capital.

Make sure to select an investment option based on your financial goal and risk appetite. You should know the investment option thoroughly before investing money.

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Potential Multibagger Stocks – How to find?

Stock Market

Shitanshu Kapadia

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December 27, 2020

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Potential Multibagger Stocks – How to find?

Potential Multibagger Stocks – 2021 was a very good year for the stock market. Strong bull run could pull sensex by 60%.

Despite of high volatility due to COVID-19 pandemic, Sensex was able to recover faster due to several positive news such as economic recovery, stimulus announcement, and vaccine news. Perhaps this is the best performance of Sensex in history. Of course, this year was the year of Multibaggers. Many stocks turned out as multibagger stocks. Here is a list of Multibagger Stocks up to 2020 & Potential Multibagger stocks.

Multibagger Stocks

Multibagger stocks are stocks that give returns multiple times higher compared to their purchase cost. If the stock value (price) on which stock is purchased is doubled is called one bagger stocks.

The term multibagger was first coined by Peter Lynch in his book “One Up on Wall Street”.

Let’s try to understand this concept by practical example. The stock of MRF was trading at a value of Rs.38000 in December 2014. In December 2020, the stock of MRF is sold at Rs.76000. This means the stock of MRF has given 100% return (1 Bagger stock) in six years.

Mulibagger stocks are stocks of the company with high growth potential, scalable business model, sound management, strong market presence, and demand in the market.

10 Multibagger Stocks of 2010 to 2020

Here is a list of 10 Multibagger Stocks of 2010 to 2020

10 multibagger stocks 10 years

20 Multibagger Stocks of 2020

The list of 20 Multibagger stocks of 2020 is given below.

How to find Potential Multibagger Stocks?

I have analyzed multiple stocks and conclude that Multibagger stocks have usually had the following characteristics.

The strong and scalable business model with very good financials.
Strong Cashflow, low debt and short cycle of receivable.
High profitability due to unique or monopoly products
High earning growth rate
Strong market presence and market demand

To find out stocks with the above characteristic you need to do the analysis of stocks by making use of market capitalization and financial ratios.

Also Read – Multibagger Stocks of Rakesh Jhunjhunwala in 2020-21

Return on Equity – Return on equity is used for comparing company performance. ROE indicates the capability of the management to generate income from available equity. ROE from 15-20% is considered as good.

Free Cash Flow – Free Cash Flow means cash left after deducting operating expense and capital expenditure.

Debt to Equity Ratio – Debt to equity is company total liability by shareholder equity. This ratio is used to find out finance leverage of the company. Debt to equity ratio should be less than 1.

Interest Coverage – Interest coverage ratio means how many times company can cover its current interest payment with available earnings.

Sales Growth – Sales growth means growth in the sales by the company. This parameter is used to compare sales growth quarter to quarter.

Profit Growth – Profit growth means a combination of profit and growth. It is important to check the profitability and growth of the company while evaluating.

Now, in order to find out stocks that are fitting with above characteristics and financial ratio, I made use of the screener (Stock screener website).

This screener website provides the facility to screen stock by writing a customized query. I have made the following query to identify potential multibagger stocks. You can customize this query and get your result with a click of a button.

Market Capitalization > 200 AND Return on equity > 20 AND Free cash flow 5years > 0 AND Free cash flow 10years > 0 AND Debt to equity < 1 AND Interest Coverage Ratio > 3.5 AND Return over 1year > 0 AND Return over 5years >10 AND Promoter holding >35 AND Sales growth 10Years > 7.5 AND Sales growth 5Years > 7.5 AND Profit growth 10Years >15 AND Profit growth 5Years >17.5 AND Profit growth 3Years >10 AND Profit growth >0

Based on above query potential multibagger stocks of 2021-22 are given in the image below.

Potential Multibagger Stocks

potential multibagger stocks 2021

Over to you

In this post, I have shared my method to identify potential multibagger stocks including stocks detail. You should not consider this financial advice for investment. Please do your own research to find out stock for investment. If required take help from the stock market expert.

Which method did you use for finding potential multibagger stocks?

Do you think the above stocks will generate good returns for the investors in the future?

If you like this post, do share it with your friends and relatives on Facebook and WhatsApp.

25 Wealth Creation Stocks by Motilal Oswal for Next 25 Years

Stock Market

Shitanshu Kapadia

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December 25, 2020

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Long term investment in the stock market helps in creating wealth. The stock market investors are always looking for stocks that can help them in generating long term wealth. Leading stock broking firm Motilal Oswal has conducted research and released wealth creation report. The name of report is 25th wealth creation study report. The wealth creation report contains 25 Best stocks for long term investment. The shortlisting of stocks is done by using logical shortlisting method.

In this post, we will take a look at wealth creation study report and detail of 25 long term investment stocks along with top 10 wealth creator stocks of 1995 to 2020.

25 Wealth Creation Stocks by Motilal Oswal for Next 25 Years

Approach adopted for shortlisting of long term investment stocks are given below.

Step 1 – To carryout study of 25 Wealth Creators of the last 25 years and find out common details. Findings of this study is given below.

All the shortlisted companies were small to mid in size in the base year 1995.
They were consumer-facing with secular business model.
All the companies where very profitable.
Most of the companies where market leaders in their respective business.
The management of the companies with high integrity level and competence.

Step 2 – After studying old 25 wealth creator stocks, next step is to find out potential 25 wealth creator stocks. Logical method used by Motilal Oswal is given below.

Size – List down 150 midcaps i.e. companies ranked 101 to 250 by current market cap.

Business Model – Find out consumer-facing companies with secular business models. This means cyclical business like auto, capital goods, chemicals, oil & gas and reality needs to be eliminated.

Very Profitable – From the shortlisted companies find out profitable companies. To find out profitability look at RoE. The last five years’ average RoE should be greater than 15%.

Business Potential & Management Potential – The next is to judge shortlisted companies based on business potential and management potential. Shortlist companies that qualify both count business potential and management potential.

Market Leadership – Now from the remaining stock find out market leaders. The companies that are famous and in leadership role.

Value Migration – Find out value migration companies. The companies that create value and capable of migrating from business model that satisfy customer priority irrespective of market leadership.

Large Cap for Financials – Financial Services is quite a risky business, and here size begets size. So, in the report they have mainly resorted to large caps for financials, and roped in leader names for the portfolio.

Digital Play – Find out the companies that are involved in digital play or digital disruption.

Valuation – Valuation matters a lot but in long run it will not make sense to give lot of weightage to valuation thus it is ignored in the shortlisting process.

Based on above process following 25 stocks are shortlisted for long term investment for 25 years.

Ajanta Pharma
Alembic Pharma
Astral PolyTech
AU Small Finance
Bajaj Finance
Bata India
Bayer Crop Science
Coromandel International
Dixon Technologies
Dr Lal Pathlabs
HDFC AMC
HDFC Bank
HDFC Life Insurance
Honeywell Auto
ICICI Lombard
ICICI Securities
Indiamart Intermesh
Max Financial
Mphasis
Muthoot Finance
P&G Health
Page Industries
Syngene International
Varun Beverages
Whirlpool India

In addition to above 25 stocks for long term investment below is detail about 10 Wealth creator stocks from 1995 to 2020.

wealth creator stocks

Over to you

Do you think 25 wealth creator stocks for next 25 years suggested by Motilal Oswal will give good returns in the future?

Do share your views in the comment section given below.

How to Increase business by motivating your sales team?

Skills & Productivity

Shitanshu Kapadia

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December 23, 2020

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How to Increase business by motivating your sales team?

You can increase your business by motivating your sales team. Motivated sales team brings more business. If you are facing challenge of retaining your manpower especially sales team this post is for you. In this post, I will share proven ideas to motivate your sale team without spending a single penny.

There are two ways to motivate your sales team. You can motivate your team by increasing salary or commission. It is one of the best motivation but during bad business scenario, it would be difficult for you to spend money. So, here are 5 proven ways to increase business by motivating your sales team.

Increase business

How to Increase business by motivating your sales team?

#1 Freedom to share & implement new ideas

You should give freedom to share & implement new ideas to your sales team. It is proven way to motivate your staff. Doing routine work may become boring in few days. If your teammates come up with new idea you should encourage the same.

If none of the people are coming up with new idea you can keep brainstorming session where teammates can share ideas related to increase the business. The best and most promising idea should be implemented. This will increase their confidence level and they will feel motivated.

#2 Run contest and celebrate with winners

The second proven way to increase sales is keeping contest among your sales team. This contest would be for daily, weekly or monthly basis. The salesman who achieved maximum sales can be given Title such as “Sales person of the day” or “Hero of the day” or “Star performer”.

In addition to giving title, you can celebrate success by arranging small get to gather. This could be small tea samosa treat. These small ways can motivate your sales staff to increase business.

How to Increase Business? – 5 Powerful Sales Techniques

#3 Set Target at the Starting of Month

You should set the target at the starting of the month. When you start your month without any target your energy gets wasted and you would not able to achieve anything in the last. Thus it is important to start month with target.

You should conduct meeting at the starting of the month and set target for the individual sales member. The target should not be moderate target. It should not be like that it can be easily achieved or tough to achieve. Make sure to write this target on the White board and update it on daily basis. Whenever your sales team see numbers on the white board they will stay focused and place efforts in increasing business and sales.

#4 Create atmosphere of competition and collaboration

Competition is important when it comes to increasing sales and business. The competition should be fair and healthy. You should create atmosphere or competition and collaboration in your company.

You should appreciate teammates who helps each other and work towards sharing knowledge with others. You should appreciate teammates who are key player and work in team collaboratively instead of pulling legs of other team members.

The positive atmosphere will surely help sales team to increase business.

#5 Make sales team feel valued

Your sales team should feel valued. In order to do so, you need to give attention to your team mates. You can make them partner in taking small but important decision such as where to keep stocks? which product to be ordered? This will make them feel valued.

Appreciate your team members in public if they do good job. You should also participate in their happiness and grief. You can celebrate their birthday and job anniversary.

The bottom line is you should not take people working under you as taken for granted. You should feel them valued time to time. It is one of the best way to motivate your team member for increasing sales.

Over to you

I hope you liked ways mentioned above to increase business by motivating your sales team. I am sure if you follow the advice given above you will be able to achieve big sales target and grow your business.