How do I invest 1,000 INR in order to get the best returns?

If you have the acumen, time and ability to take risk, get started with any one of the low cost, unorganised businesses. It really could be selling anything as long as you are creating an access point by filling in the logistics gap and have the ability to work hard.

This is high return, but very high effort. Your 1,000 can be deployed and returned as 2,000–3,000 within a day at most of the daily wage, cash based businesses.

This is a super short film which explains the concept.

Here are a series on scroll.in with examples that will show how attractive the opportunity of daily economics is. This could be extended to selling veggies, flowers etc.

I have a theory why stocks, mutual funds etc, might not be an attractive option in your case. It’s called the paradox of value. I am making some assumptions to advise this answer.

1. Rs. 1,000 to 10,000 is not going to make a life of death situation difference for you
2. You can afford to take a risk of 10–20% in order of make a return >25%
3. You need a quick fix, rather then wait 10 years, because even at 30% IRR over 10 years, you’ll only end up getting 13,786/-. Add inflation 10 years and it’ll not even be able to buy you then what it can buy you today.

All in all these are some of options I’d recommend:

1. If you have the skills and knowledge, trade stocks and hope to make profit with each trade, because the margin for error is very very low. Note: Don’t rely on tips.
2. If you don’t have the skills, but willing to roll-up your sleeves – there are some business options that you can look at
3. If you don’t have the skills and looking at this as more of a passive investment, then these are your options:
   1. Invest in bluechip stocks and try not to see it’s value everyday. Review once or twice a years. Expense ratio will be high if this is the only investment you make. Expect to make 15–20% per annum over a 5–7 years period. Reinvest the dividend that you’ll receive.
   2. Invest in a mutual fund and expect to make a similar return with no upfront cost. Your returns will be next of expenses by fund houses and/or advisors.
   3. Give an unsecured personal loan to someone and charge an interest. The credit default risk is yours.
   4. Walk in to a jewellery store next door, buy physical assets such as a silver coin or buy gold coins online (PayTm offers them)
   5. If you need more help with the a,b,c,d ping your the advisor next door.