Top small investments with big returns in Pakistan.

Byline: Ahsan Nisar

Basic mindset of any type of investor is to manage the risk and maximize the returns. The common phenomenon in managing the risk is diversification or, in other words, not putting all the eggs in one basket. The diversification requires choosing right basket to put your eggs in; and most importantly how much? The article is a compilation of tried and tested investment opportunities in Pakistan that require little investment but the returns are significant.

Real Estate

Investing in real estate is one of the most famous and widely practiced investment ideas in Pakistan. People buy property, especially land, and leave it for some time for price appreciation over time. Real estate investment in Pakistan is a safe investment option as the market for real estate is improving at an increasing rate so one may expect greater returns and wider scope in real estate. An important aspect is that a real estate is a safe option that yields higher returns. So, whether one invests in houses, flats, plots, or shops, all these assets will provide great yields in the form of resale value and rents.

Stocks

This is one of the best investment opportunities in Pakistan. If one doesn't have knowledge about stocks, then he/she may engage a brokerage firm for the same. The average stock return is usually 10% in Pakistan. That means if one invests Rs. 1000 in stock, it will give Rs. 1100 after some time, and sometimes within hours. One has to be well aware and strategic about the choice of stocks. Through building a portfolio of stocks, overall risk could be reduced. Usually, the stocks with higher risk yield higher ROI.

Gold

The recent price of one tola (10 grams) of gold is Rs. 114,000. Last year, the price was around Rs 90,000. Investing in gold biscuits is a good option as they generate maximum returns. Similarly, one can also invest in diamonds and silver too.

Forex

Forex trading means trading of different currencies. Although technology has made it very convenient and easy but one should be able to study the trends in currencies and keep oneself abreast with the latest currency rates and financial situations, and try to invest accordingly. For example, consider the comparison of the American dollar and Kuwaiti dinars. In 2019, the average price of one dollar was Rs. 150, and the price...