Investment is an ideal way to amass wealth over time. There are a multitude of investment options available for potential investors, with varying degrees of risk ranging from safe lower return assets ones to riskier, high-return opportunities. Therefore, it is imperative to assess the overall advantages and risks involved in each investment opportunity, to make a sensible decision and determine whether it aligns with your overall financial goals. Investment opportunities in Pakistan include real estate investment, investment in stocks, investment in gold, investment in Forex, bonds, mutual funds etc.
Why are investments important?
Fortunately, one does not have to possess heaps of cash to invest. A safe financial future and a comfortable life in the long term are guaranteed with the right investments, especially in times of political instability, economic volatility, and unforeseen incidents such as the recent COVID-19 pandemic.
In Pakistan, the economy is suffering from a staggering rate of inflation, which touched the highest-ever rate of 24.9% in July 2022, due to which the purchasing power of people continued to decrease. In such circumstances, investing is the wisest option to not only retain the value of your money, but also to multiply it, and fulfill your financial targets. However, there are several factors to consider while making investment decisions, such as:
- Risk tolerance: An investor with a high-risk tolerance is willing to endure loss to get potentially better results in the long term. Low-risk investors make investments which maintain their original investments.
- Timely information: Background knowledge about investment plays a pivotal role in investment decisions. Saving accounts and certificates of deposit (CD) don’t require much knowledge, however, products such as stocks, require ample knowledge about the company, the product portfolio, the industry, the company’s financials, the competitors, etc.
- Time horizon: Investments must resonate with the investor’s time horizon. Shorter time horizons demand safer investments with a low-risk factor. Longer time horizons involve aggressive, riskier investments.
- Amount to be invested: Often, it is not prudent to invest all your money in a single place. Investments should be made in several diverse industries to ensure safety and higher chances of gaining maximum returns.
Once all these factors have been considered, it is time to invest! Listed below are the top high-return investment opportunities in Pakistan which are relatively safer involving lower risk levels:
1. Real Estate
Real estate has proved to be a lucrative sector for investment in Pakistan. The real estate boom started in 2005 and has continued to bloom to date. The advantages of investing in real estate include passive income, stable cash flow, tax advantages, increase in property value etc. The government has introduced various incentives in recent years for both citizens and overseas Pakistanis which has opened new opportunities to expand their assets.
With so many projects coming up one wonders which one is a safe and productive investment.
|D.I. khan New City presents a great opportunity for investment.|
One such safe investment option is D.I Khan New City by Saif Group of Companies. Being one of the leading industrial and service conglomerates in Pakistan, Saif Group carries its legacy since the last 100 years. The initiatives taken by the founder of Saif Group- Khan Faizullah Khan have been raised to higher levels by the next generation of Saifullahs.
JK&S Global Developers (Pvt) Ltd, is a rapidly growing real estate development company of the Saif Group, a highly reputable and revered business house with an extensive history of delivering successful projects across Pakistan. Some highly successful endeavors by Saif Group include Mobilink, Transworld, Softech System Pvt Ltd, Kulsoom International Healthcare, and Eighteen Real Estate to name a few.
2. Forex trading
Forex trading is the trading of one currency with another. It is a simple and convenient investment, requiring only that the investor be up to speed with the latest currency trends and financial developments.
Another good option to invest is in stocks. Pakistan’s stock market recently earned its highest profits in 10 years, with a total of 178.40 billion shares valued at PKR 5.00 trillion or USD 24.21 Billion collectively. Although a bit risky, stocks yield a higher return on investment. If you are unfamiliar with how the stock market operates, stockbrokers can be hired for assistance.
Some stock options by Saif Group of Companies include Kohat textile Mills Ltd, Saif Textile Mills Ltd, Saif Energy Ltd etc.
4. Government/treasury bonds
Treasury bonds yield a fixed rate of interest which is paid to the investor till the bond reaches maturity. The Pakistani government issues bonds starting as low as Rs 100 with a yield rate of 13.271%. Due to the government’s involvement, there is little risk in the payout and returns. The bonds can easily be turned into cash whenever the investor pleases.
5. Mutual funds
Mutual funds consist of a company which pools together money from various investors and invests it in securities such as stocks, bonds, and short-term debt. The company charges a minimal fee for managing the investors’ pool of equities. Over time, all investors are benefited when the profit is multiplied, and the risk is lowered significantly due to the mutual pool.
6. Food and beverage industry
Investing in franchises and food chains has proven to be an extremely profitable investment during the last few years. Nonetheless, a particular skillset is integral to ensure success when partaking in such ventures.
All in all, there are a plethora of investment opportunities in Pakistan. While some involve low levels of risk, others entail higher levels of risk. The return on investment differs according to the nature of the investment as well. It is integral to consider the aforementioned factors in the article before choosing which type of investment would be most suited to your long-term financial goal of making a safe investment with high returns in Pakistan.