Investment options in India

As a 39-year-old with decent middle-class background am here expressing my views and experiences with Investments and Savings for Future in India.

Real Estate - my experience says real estate is a good investment only if its in land/ plot in municipal approved layouts and with clear deeds. Apartment Flats/ Gated societies do not count as investments but count as good to live places. So don't be confused between them - real estate is a very generic term. Why apartments and gated communities are not a case for great investment is because the quality is not like earlier era (built to last a 100 yrs). Today most new structures would last only 10-15 yrs and then become burden to maintain. There is a unlimited supply of such apartment flats- builders launch projects every day - suburban areas are plenty. But if you are willing to stay in there for 10-15 years a new ready to move apartment is a good choice. Rest sell it and move to new one after that 15 years span. 

Whereas the row house plots or open lands appreciate because there are less restrictions on what you can do with that land i.e. you can put it for residential, commercial uses. Again do not fall for gated community plots because they are mandated for residential use only - so why will they appreciate more than inflation- same developer is making new launches every now and then.

Do not mistake inflation led price rise in real estate to your wealth growth, in most real estate spends the returns are negative if you account for inflation and add the interest you paid on your loan. Put your mind and calculate real growth and compare it Vs other investment avenues. 

Equity - long term >10 years - invest only via SIP and well managed funds - do your own research there is no alternative here, you cannot depend on others to manage your hard earned money. Take path - NPS, Hybrid funds to ELSS to Flexi caps and more as per your risk profile. 

Why equity- suppose your are working in a sector and hope for that sector to grow so why not invest in it too, you consume goods and services and this consumption is only going to go up as your family and nation grows - so consumption, new technology, your own sector based investments are rational steps. Do your own research and invest only when you understand it.

Starting your own venture - yes - if you are hard working, focused and have a vision, what better than to work on your vision to build the ultimate wealth generating machine for yourself and stake holders that you work with.

All investments should start only after securing bare minimum needs like health insurance, term insurance and 1 years emergency funds in a safe bank. 

Do not fall for LIC, ULIPS, other hybrid noise making instruments - they neither cover your life's worth, nor provide decent bare minimum FD earnings. My LIC policies have returned less than FD's and do not even cover any worth of my replacement income in case of unfortunate event. I stopped LIC and have been sticking to pure term plan and plane vanilla 10lac health cover for family. 

Wishful thinking is by the time India hits 100 years of Independence our government should ensure 100% equal free school education without income barriers and 100% health care for all residents of India again without any reservations, income slabs - One India, One Education, One Healthcare.