I have recently sold a property worth Rs. 20 Lakh but I have no clue where to invest this money and get decent returns. Please suggest!

Hopefully, you sold it at a much higher price than what you had bought it for. One great thing about real estate is that there's no depreciation in the value and there is guaranteed appreciation although the percentage varies, which is absolutely normal. Now, if this was the only piece of real estate you ever had, then you should focus on acquiring another property that is more compatible with your present situation, e.g. conveniently located from your place of work, potential of infrastructure development in the near future, secure gated community and other standard amenities that most residents expect. Having a house of your own should be your first priority if we go by the age-old wisdom with regard to human needs - food, clothing, and shelter.


If you already have a property of your own and this was just an investment, then again there's no harm in re-investing in a more promising property for the simple reason that in any risk evaluation, real estate is always considered a safe investment. However, if you're impressed by the way the stock market has grown over the last couple of years, I would suggest you visit any of the top five private banks and meet with a customer relationship manager there.

He will explain the most optimum investment opportunities to you and my guess is, if he realizes that you have no experience of trading in the stock market, he will advise you to put your money in a SIP (Systematic Investment Plan). Rest assured, this is a good advice and you can proceed with investing your money in a SIP.

Stock Market

When you invest in a SIP you'll be investing in the stock market under certain levels of protection that your fund manager (the bank where you make the investment) offers. There are three broad categories of SIP - low risk, medium risk, and high risk, corresponding to the ratio of your money being invested across equity (shares), commodity (gold, silver, etc.) and debt (debentures and other interest-bearing deposit schemes) securities. For instance, in the high-risk SIP, about 60% of your money may be exposed to shares, 30% to commodities and 10% to debt instruments while it will be the opposite in a low-risk SIP and somewhere in between in a medium risk SIP.