7 Ideas of Investment in Pakistan?

7 Ideas of Investment in Pakistan?

You might have heard about the importance of saving and investing money but do not precisely know where to begin. Everyone has a different financial situation. Some people have debts, and some are not making enough to save, while others do not have control over their spending habits.

Waiting to hit the jackpot someday, and then investing, is just not realistic and won’t help you in the near future.

The global economic aspect has drastically changed its orientation from limited to evolving considerably. Now, we see cryptocurrencies, the most trending concept of blockchain technology. This technology can revolutionize the financial world.

A few decades ago, there were very fewer options to consider before investing. But with time and increasing standards of living, people are more prone to upsurge their wealth. For this purpose, one needs to invest in some way. To make a smart choice about investing, you need information on the options available and the returns of different assets.

Since you are reading this blog, perhaps you have made up your mind to start taking your financial matters a bit seriously. If that is you, way to go! Whatever your current financial situation is, you can still get your life on track, save money, and eventually invest it too. Take a look at the following tips useful for money investment and saving tricks:

Set Goals Before You Invest

The first step to saving money or investing is to have some goals. It is not sufficient to just say that you want to save money. Coming up with a plan is utterly necessary, particularly if you want to put your money in the financial market.

So here is what you need to do: Ask yourself what exactly should you save or invest before putting it away. With goal-based money management, it is easier to handle your money and investments, as you will know when you can afford to spend more and when not.

Best Investment Options In Pakistan

We have all read up so many times that the key to getting rich is by investing as opposed to saving. In this day and age when inflation is running wild, every sane voice in finance will tell you that investing your money in the right place is everything. The higher the risk, higher the return. However, it is still not advisable to take foolish risks. We have made a list of some of the great investment opportunities in Pakistan.

Real Estate Investment

Real estate is the most favored and traditional way of investment. The majority of people in Pakistan prefer to invest in real estate market if they have enough amount of money to invest in property. Investment in this domain typically gives attractive and stable returns. The mechanism follows the underlying economic fundamentals, as the population keeps growing, and there exists a limited area in the world to live in, the demand-supply gap remains.

Both commercial and residential estates give hefty returns. There are a whole host of different options to choose from if you are a first-time home buyer looking for apartments in Islamabad, the market has never been as favorable as it is today.

Investment in real estate normally provides good returns, but this form of investment requires much patience because any profit earned would be seen over a period of five to ten years. Property professionals believed that people who have a mentality inclined towards conservatism prefer property because they believe it is a stable asset.

Furthermore, the returns offered by the real estate sector over the past decade have shown meaningful profits compared to other alternatives. Though, from an investment point of view, real estate is still the most compatible domain with stable returns.

So, If you are looking for shops for sale in Pakistan, you can look forward to good profits and rental yields just by holding the property for a few years. If you need shops for sale in Islamabad, Lahore, and Karachi there are numerous projects being developed by well-known conglomerates such as the Giga Mall Extension in DHA II Islamabad and Goldcrest mall in DHA Lahore.

Stock Market Investment

If you’re searching for a long-term investment that requires no active part and no regular follow-ups, then investing in a stock market is the type of investment you should desire. Stock markets often need you only to invest, thereby purchasing some shares of a company you like, and you can trade these shares whenever required. Stock market investments carry a lot of risks, but they also provide many benefits to investors.

Moreover, the stock market of any state is the reflection of its well-being in the economy and shows that companies are doing well, which makes up the economy of the state. Stock prices, in the longer run, show how good the company is accomplishing in terms of profit, which is then interpreted to complete economic performance. The Pakistani stock market has a long history of returning at different rates of return in boom times and bust times. While you can make a fortune if you invest wisely, do not put your eggs in one basket and risk losing everything due to the level of volatility.

Even though there is a risk attached to this investment option, stocks remain one of the most popular investment choices for Pakistanis. According to a report published in the Tribune newspaper, the number of Central Depository Company (CDC) accounts – the company where shares are placed in Pakistan – has improved over the last six years. Probably, the attraction of significant returns outshines the extreme volatility of the market and attracts people to it. Still, investors must keep in mind the risk factor.

Gold Investment

The gold standard isn’t called standard for anything. While the real value of things varies, gold is never going to lose its value. There will be a day when oil will be worthless as the world will have moved on to green energy, gold however will only get more expensive with time.

It is everyone’s all-time favorite way of investing money, and let us be honest, it is safe, and it is always rewarding. You can buy gold coins or bars, and both of them will work. Gold is considered to be a great hedge against inflation, i.e., if you are worried that the value of the currency will decrease.

Currencies Investment

The aspect of currencies is somehow related to that of the stock market, and their variation is also linked with the economic situation similar to the stock market. In the case of currencies, there are two possibilities; either they strengthen or weaken against another. In the past, only companies and banks invest in the foreign exchange market, but as time passes by, the percentage of individuals in this form of trading has improved, and many are currently engaged with it.

The variation of currencies is generally driven by demand and supply. Currencies with high demand will have sky-high prices, while the opposite will lower. Nonetheless, demand and supply are determined by the economic developments and stability in the political front of a country.

Investment in currencies increases the risk factor, but at the same time, it enables investors to balance their portfolios. Trading in currency also provides a hedge against exchange-rate fluctuation, helping many institutions against any adverse movement.

Prize Bonds Investment

Prize bonds are the most trouble-free and convenient way to invest your money. They are not only hassle-free but also endorsed by the government to refund if claimed by the owner anytime.

There are several numbers of denominations of prize bonds ranging from 100 rupees to 50,000 rupees. This broad range allows people to invest even as little as 100 rupees, unlike the other investment options that require a large sum for better returns. These bonds can be obtained from the State Bank of Pakistan, the National Savings Centre, and some designated branches of commercial banks. Every bond consists of a serial number, based on which draws are held every three months.

Mutual Fund Investment

You can not only save your money but gain a profit on it over time with mutual funds. There are no separate trades or purchases involved. They are generally available through investment firms and banks, and you are free to sell your shares at any time if you want your money. But if you wait, then the money that you have invested is returned with profit over and above your initial investment.

Fixed-Income Deposit Investment

These funds offer relatively lower rates and more often than not their rate of return is lower than the rate of inflation. However, for senior citizens, the rate of return is somewhat better. It is a safe way to secure your money without taking on too much risk.

Best Real Estate Investment Opportunities for Expats Pakistanis

Pakistanis living abroad seek great opportunities to invest and secure their money for their bright future. Real estate with ensured returns is the business in Pakistan. The real estate market is set up and becoming a developing sector in Pakistan. In spite of its issues like adjustment of payment, hyperinflation, monetary strategy, and energy crisis, the real estate market still remains positive guaranteeing returns for overseas and local Pakistanis.

The capital-city Islamabad has always been a real estate investment charm for the local people and overseas also. Pakistanis living abroad particularly wish to expand their future inland in their home country. The style and the conciliation of the metropolitan charms individuals to live here. Islamabad land segment has developed in recent years only due to this surge sought after by individuals.

For Instance, Al Ghurair Giga Pakistan is famous for constructing exceptional and farsighted projects. They believe in creating and enhancing the places that people work, live, and play in by understanding the varying requirements of societies. Besides, they have built one of the most elegant projects, including Malls and apartments in Islamabad.

Below are some good real estate investment options for Overseas Pakistanis in Pakistan:

  • Giga Mall Extension
  • Goldcrest Views
  • Goldcrest Highlife
  • Goldcrest Vacation Homes
  • Town Center Commercial
  • Central Palace Residence

Real Estate Expectations from 2022

As the real estate sector might have seen downtimes during the year 2021 due to the unstable political and economic conditions of the country, the industry will see an improvement in investments within the upcoming years. This is primarily because several new advancements are moving throughout the country that will influence real estate values upon their completion. In other words, the future of the Real Estate market in Pakistan will further grow in the upcoming years.

Final Thoughts

When investing your money, try to avoid putting all eggs in one basket. That means, for instance, do not just invest in real estate, invest in gold too. This is essential because certain investments may rise and fall in their value, so you got to act smart.

Before you invest your money, do some study, and find out which option would be most suitable for you. Invest because you want a better future.