Investment in 2025: With preparations to welcome the new year underway, many are devising plans to make 2025 a financially successful year. If you are planning your investments for 2025, it’s essential to choose the right investment avenue based on your savings. In 2024, safe-haven investments like gold and silver outperformed stocks. By the last week of December 2024, gold had delivered a stellar return of 25.25 per cent, silver 23.11 per cent, while the BSE Sensex and NSE Nifty 50 provided a 9 per cent return. Here's a detailed look at potential investment opportunities for 2025 in gold, silver, mutual funds, stocks, and real estate.
Lower returns expected from gold and silver
Experts suggest that geopolitical tensions affecting global economies in 2024 may ease in 2025, potentially lowering returns from gold and silver. However, these assets remain essential for portfolio diversification. Investors are advised to allocate 10 per cent of their portfolio to gold and silver, as these low-risk assets are still capable of delivering steady returns.
Focus on large-cap mutual funds and stocks
Stock market experts recommend focusing on large-cap stocks rather than mid-cap or small-cap stocks for short- to medium-term investments in 2025. High valuations in mid-and small-cap stocks make large-cap stocks a more prudent choice. Investors can also look at large-cap mutual funds for better returns. A balanced investment strategy for 2025 could include 60 per cent in large-cap equities, 30 per cent in debt instruments, and 10 per cent in gold.
Real estate may disappoint
Real estate investors need to tread carefully, as property prices are currently at record highs. Affordable flats or commercial spaces are scarce, while luxury properties are priced in crores, with limited buyers in the market. Expecting quick and high returns from luxury properties may not be realistic in 2025. Instead, investing in land could prove to be a better option for long-term gains.
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