Agricultural Investment India

Investors choosing to buy up agricultural land now, will benefit not only from the growth in the value of the land itself, but also from the high yield earned from leasing the land to a farmer. So the best agricultural investment in 2010? direct investment, buying farmland, owning the asset, however you want to put it, those investors choosing to buy up farmland now will be well rewarded, very well rewarded indeed.So, what could be considered the best agricultural investment? Well the options for investor are two-fold, firstly you could invest in one of the many agricultural funds available on the market, these agricultural funds offer the investor the opportunity to participate at lower levels and enjoy the lower risk element of spreading their investment over a vast portfolio of crops and locations.

Smaller investors can take part in Agriculture Sector by buying farmland and then renting to a farmer to manage the growth and sale of crops. The investor will own the land and will receive a rental income from the investment of up to 7% per annum, whilst the farmland will be professionally managed, harvested and the crops sold on by the farmer. This type of buy to let deal structure allows smaller investors to participate in agricultural investment in much the same way as institutional clients have done, provided that the smaller investors can source investment farmland.

There are agriculture investment products that design risk out of agricultural investment, with tenant rent to buy options, allowing the farmer tenant to buyback the farmland form the original investor after a fixed time period. This provides the investor with an exit strategy and it is also possible to build in further risk mitigation by securing a minimum buyback price into the rental contract with the farmer.

A way to understand where to invest

One investment strategy is value investing. Individuals who adopt this style of investment are called value investors. Value investors usually purchase companies whose share price could be underappreciated for some reason.

Value investors search the marker for the undervalued companies. The reason a company is thought to be undervalued is because value investors believe that the stock market overreacts to good and bad news announced by companies in the company's monthly, quarterly or annual reports. This means that in the short run share prices fluctuations have more volatility than that of the average long run price of the shares in a company. The short term swings in the price of shares leaves value investors with a good opportunity to make a quick buck.

There are some serious 'pros and cons' of a value investing strategy.For example, the concept of 'buy low, sell high' will always be appealing, but the work and effort involved will naturally put off large numbers of potential investors. Of course, this also applies to other successful areas of stock investment such as technical analysis and selecting growth companies.

However, the very nature of the business cycle means that sooner or later, growth will become recession and boom will become bust. This means that bargains will sooner or later be available and at that point, the value investing strategy will become of use. Value investing is the a good relatively safe way for an experienced investor to make safe earnings on the stock market while minimizing risk. The fluctuations of the stock market are avoided as opposed to day traders who like the ride the waves of the stock market. Day trading is a very risky form of investment and not for the faint hearted investors.