Want to invest with target above fixed-income return (comparatively less risky) avenues

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I am an NRI in Middle East with portfolio of Rs 1 crore (with 50% in equity and mutual funds and 50% lying idle as cash in bank balance). Initially, I was planning to buy a shop and give it on rent. But currently the shop prices are already high in my hometown (Rajkot) to the extent that there is not going to much price appreciation. Then I thought to take some pharmacy medicine shop franchise, hire pharmacist and manage it remotely. But this option too doesn’t seem feasible as it would be tough to manage everything remotely from here.

I was waiting for stock market correction, but that is not happening since long. Since lately, I am observing a disconnect between company fundamentals and stock price. And even if there is a correction, it would be prudent to not invest everything in stock market.

With wealth of expertise that we have here with our able members, I would be grateful if I can get some good suggestions of any investment style that suits higher than fixed income returns and have comparatively less risk appetite now. Say maybe high dividend universe, or bluechip universe or any other mix styles that can do justice.

Thanks to all and stay safe.

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Hi Patel

12% IRR and less risky there is nothing such thing exist IMHO.

Here are the few options you can consider

Slowly invest in NIFTY 50 , NIFTY NEXT 50 index funds ( you can expect 7-10% return but you need to have long term and being patient attitude , invest and forget)
Invits / REITS which gives your yield of 5-7% return and appreciation in the underlying asset ( again depends on the economy )
Invest in good AAA rated corporate bonds

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Please hire a wealth manager through a known source and he can guide you better, this forum cannot help you much in this regards

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Don’t time the market but time in the market is more important , with little effort every day in reading and learning about basic equity concepts then it is not a rocket science to invest in some 10-20 quality companies for that you don’t need any financial advisor. If you cannot spare time then just invest in index that takes care of your needs.

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Invest 50% lumpsum into low cost index funds

  1. Nifty 50
  2. Nifty Next 50

for the rest 50% you can do an SIP into these two funds to enable average costs over time.

Nifty last 20 year CAGR was 13.5%, so it’s in your 12% yearly return category provided you stay put into these investments for 20 years.

Above two funds lets you invest into top 100 companies in India at bare minimum cost possible.

Sit back, relax and enjoy the benefits of compounding with just 2 investments.

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You can try this with 5% of capital ZOTA HEALTHCARE / DAVA INDIA | Value Seeker

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Thanks @Rafi_Syed @Tar and @AmitContrarian for your valuable suggestions. Index funds were out of my mind. Thanks for giving new perspective.

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@Patel_Bhai … there isn’t such a thing as risk free but I’ve created a capital protection + yield portfolio for my wife with
ITC
Oracle
RITES
Indigrid Invit
Embassy Reit

If you can enter the above at under 200, under 3000, near 240, near 110, around 315 respectively and split your 50 lakhs equally amongst them you should be able to hit a nice yield of approx 6.5 to 7 percent a year and get some good capital appreciation too(with a high chance of ITC, Rites, Oracle outperforming too appreciation wise). Again, not risk free… but as safe an investment as I could think off using the options available in the stock market.
Disc: not a sebi advisor. And as mentioned im invested in those assets.

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