When we speak of investments, some of the first things to pop up in our minds are returned on investment (ROI), risk factors, time, liquidity, tax, inflation, etc. Known to be a saving economy, Indians aren&rsquo;t the most forthcoming when it comes to investing, and rightly so. Nonetheless, this seems to be changing with the current generations, courtesy of the available resources, such as the internet and professionals like financial advisors.&nbsp;

<h2>Listed below are some popular investments an individual usually tends to make</h2>

<ul>
	<li>Fixed Deposits: The ideal old-school way of investing, guaranteeing a return on investment, is offered by banks and non-financial institutions. The duration could range from 7 days to 10 years</li>
	<li>Mutual Fund Investment: An investment involves a group of investors pooling money to obtain returns on their capital over time. Managed by a fund manager, the profit/losses are borne equally by all the investors</li>
	<li>Real Estate Investment: An investment requiring a considerable sum of capital, real estate investment continues to be one of the safest bets. In most cases, a real estate investor purchases property or land for living, renting out, or commercial use</li>
</ul>

Other regular investments include stocks, bonds, provident funds, insurance, and exchange-traded funds (ETFs). However, with the current real estate wave in the country, let&#39;s dwell deep into the matter, breaking down the reasons for investing in these fixed assets and stating their types.

<h3>Listing down the reasons for Investment in real estate, especially in the metros like Mumbai</h3>

Known as the Maximum City, Mumbai is home to a population of over two crores. Thus it isn&rsquo;t difficult to fathom the skyrocketing real estate prices. Nevertheless, the demand continues to be stable, to say the least, with top developers dishing out world-class infrastructure.

<ul>
	<li>A safe bet for increased ROIs: Owning any land in Mumbai requires a good amount of capital. Therefore with the ever-increasing inflow of people, the demand isn&rsquo;t going to die down anytime soon, promising substantial returns concerning size and location</li>
	<li>The epicenter of all economic activities: The country&rsquo;s financial capital, Mumbai, is where the action happens, whether it be finance, real estate, entertainment, etc. It is the largest economy in the country</li>
	<li>Connectivity: Though the city&#39;s density continues to be a hurdle, the concerned authorities have done a phenomenal job regarding the railway network and flow of BEST buses. Projects like metros and the coastal road will only improve things</li>
</ul>

<h3>Let&#39;s break down the different types of investments in real estate</h3>

1. Residential Real Estate&nbsp;

A high-cost proposition that promises long-lasting returns, residential real estate refers to flats/apartments, duplexes, penthouses, villas/bungalows, and townships. An investor could use this to live, rent out, or keep it for future resell purposes.

2. Commercial Real Estate&nbsp;

The sole purpose over here deals with business. An investor could use this for personal work or rent it out for commercial purposes. Investing in commercial real estate usually involves a higher rate of return. Examples include educational institutes, health care, shopping centers/malls, and offices.&nbsp;

3. Industrial Real Estate

These refer to land, factories, and warehouses used for industrial activities involving manufacturing, assembling, construction, and logistics. These offer higher income returns too.

4. Land Investments

As basic as it gets, investing in land involves an individual purchasing land, which he could use for many purposes, including residential, commercial, industrial, or even a mix. Pouring-in capital regarding raw land is the least expensive compared to others and offers the highest ROI.

Some other types include Real Estate Investment Trusts (REITs) and crowdfunding platforms.

No doubt, real estate investments demand high capital. However, they remain a popular choice, courtesy of it&rsquo;s ROI and low-risk factor.&nbsp; 
&nbsp;