Which investments can give us assured returns today?

Here, I would like to quote a famous saying by Mark Twain where he adviced — ‘Buy land, they are not making it any more’ . This saying appears to be holding good a hundred years after the American author’s death. Whether it is Mumbai, Delhi, or even some of the smaller tier II cities, like Coimbatore or Jaipur, real estate prices have multiplied manifold over the past few years.

In real estate, there is no dearth of multi baggers. There are many cases wherein properties bought for a mere Rs 1 lakh around 1985 are today valued at Rs 1 crore or more.

Sonali You didn't mention the amount( For small investor or mid to big investors.) . if i have just 50000 or 1 lakh rupees now. Then how can it possible that i will go for Real estate.

Comparative returns for the last 20 years (1986-2006)
What Rs.1000 invested at the end of 1986 would be worth at the end of 2006?
Instrument                      Value(in Rs.)                      Average A. Return
Stocks (S&P500)                        9310                                11.80%  
Real Estate                                  8540                                11.32%   
Commodities                               6510                                 9.82%   
International Stocks                     5020                                 8.40%   
Inflation (CPI)                             1820                                3.05%        
Gold                                           1550                                  2.23%

Investment by nature while generates returns, the same is done in association with the risks for generating the said returns. The question is who takes the risk. In an assured return scheme, either the structure or the product manufacturer takes the risk (and also takes a lions part of the risk premium).

So the only investment, in my view, which gives assured returns today is Investment in Knowledge. Be it professional knowledge or just the Knowledge about markets, risks and returns. In the absence of this knowledge, there is no assured returns. Have we not seen Relatively Low Risk - fixed return product providers - like FDs going burst and large corporates and worlds best bankers going  bankrupt?

So Invest in Knowledge. It will give you understanding that there is no Assured Returns and if so, you will know the cost of the said Assured returns and the risks associated with it. You dont want a US64 again Right!

There is no single investment that can provide assured returns, the best way is to use asset allocation. Invests in assets that have a negative co-relation with each other.

Every person should have some safe investments initially which is not subject to fluctuations and is very safe.  The govt's small saving schemes like PPF, NSCs, Post Office Savings Schemes, etc., fit the bill.  Once a person has some safe investments, he can go in for riskier and more rewarding investments like real estate, stocks, etc. 

I know this will draw protests from all those mutual fund agents and so called wealth advisors who will tell you that if you are young, go in for equities and other riskier assets as your risk appetite is high and your earning period is very long.  I think this is total bullshit.  First have some security and then go for those riskier assets. 

When the IT industry went into recession recently alongwith the stock market crash, many people lost both their jobs as well as their savings since they had invested in equities.  Had they invested some portion of it in safer investments, would they not have been better off? 

And when your safer investments are big enough, locate a property and invest in that by liquidating these safe investments.  Real estate is very lucrative but does everybody have the required capital?

I believe we cannot assure which one's can give a assured return, however scares resources like oil and gas producing companies are a good investment.

The reason is that this resources are scares and are to decrease as time passes by meaning companies will make profit at a same or may b abit higher cost....

Profit will increase with high demand and low supply...