Everyone is specific in their quest for safe investment options. It is important to understand that safe investment options do not exist in real in any part of the world. So what investors should really gun are low-risk investments that offer a reasonable return. While there are many lucrative options available in the market, here are five top options that are worth your investment:
Fixed deposits are evergreen low-risk investment which can help your money to grow over time. If you certain banks or companies for FDs then they also offer tax benefits. Investing in Ds may seem to be a simple idea but it is quite effective. Also the low risk involved makes it a more suitable option. Before investing in FDs do check for:
- Credit profile helps in determining whether the company will honor all capital and interest payments. If FDs has higher ratings like AAA/FAAA than prefer them over others.
- Interest rate should be a major factor while choosing an FD to invest as higher the rate of return/investment the more you get in return over a shorter time. Although, it is not advisable to compromise credit profile for a higher return.
- FDs are known to offer interest payouts at varying frequencies. It can be monthly, quarterly, annually or a one-time payment on maturity. You should opt the one that suits your need. The ‘on maturity’ investment will generate highest return although it can make you wait for a longer time.
- ENDOWMENT PLANS:
Endowment plans offer life cover combined with savings. Endowment plans assure a payout regardless of whether the policy holder survives the tenure or not. In insurance parlance, they are ‘with profits’ plans.
III. RESIDENTIAL AND COMMERCIAL LAND INVESTMENTS:
Residential and commercial land development offers a feasible path for investment as virtually there are unlimited number of land development opportunities that can be strutted to meet an investor’s capital and time constraints. Investment in real estate is a popular way to invest your money. It is not uncommon to find people purchasing apartments in suburbs of major metros as a residential as well as an investment option. Virtually you won’t be at loss as at it is very rare for land prices to fall. They can be stagnant for a long time but won’t drop down until or unless there is no demand for it at all.
Investing in gold is considered a very good option. Firstly, it is a hedge against inflation. As observed over a period of time, the return on gold investment is in line with the rate of inflation. You can invest in gold by these options:
- Jewelry buying
- Investment in Gold coins/bars
- Gold ETF: It is a type of mutual fund which in turn invests in gold and the units of this mutual fund scheme are listed in the stock exchange.
- POST OFFICE SAVING SCHEME:
It is one of the best investment options in India that ensures the highest return. The monthly income plan of Post Office Scheme is very suitable for people with regular income requirements. This is a government saving scheme, so the risk-related factor cancels out. Only drawback is the low-interest low.
Why do people want to invest? Well, this question does not have a fixed answer. Some need financial security, some people to earn money through money, for some people it is extra source of income. People believe that to earn you need to work more. This notion is wrong. Investment makes your money work for you, maximizing your earning potential.