Top 7 Investment Options For The Common Man

While looking for the ‘best’ investment prospect, investors want a platform that will earn them the highest profit with the least amount of risk. However, it is pivotal to understand that every investment has some risk associated with it. Some investments bear high risk but have the potential to yield high inflation-adjusted profits than other asset classes. While some investments have a low-risk return and therefore lower returns. On your way to deciding an investment avenue that fits you best, evaluate your risk profile with the risks linked to the product before investing.

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Here are top seven investment options with varying levels of risk that are considered good investment options:

  1. Mutual Funds:

Mutual Fund is referred to as a collection of investment offered by various investors who intend to either earn money or to preserve their money safely. The idea of this collection of funds is to invest in different securities so that the investors can efficiently expand their savings without risking much money. Mutual funds are run by the professional money managers who have expert knowledge when it comes to managing portfolios. It is one of the most straightforward investment options where one needs to open a demat account online, and find the leading mutual fund and begin investing with them. With mutual funds, you don’t have a fear of losing money as it enables you to have a diversified portfolio with low risk.

  1. Real Estate:

Investing in real estate is considered to be one of the best old-school investment options. Buying a house or an apartment is a way of securing money and your future. What people typically do is buy a house and rent it out to generate a regular income. Purchasing real estate channels a sense of security among many as the prices don’t fluctuate as much as compared to other investment products. Investing in real estate is a long-term benefit as when people need extra income in the 30s or 40s, the house will support them financially with the rent, and once they hit their 50s, they can live in it. Not only this, but you also have the option to sell the property whenever you want and invest in something more significant.

  1. Gold:

Gold is one of the oldest investment options preferred by the common man. Many conventional investors are of the view that investing in gold is an excellent way of keeping money safe. Some prefer to buy jewellery that can be used by their children later in life, and some investors prefer to buy gold in solid form, i.e., as gold bricks or gold coins, as it is a pure form of gold. One more reason why people prefer to invest in gold as opposed to other investment options is that the gold market has the record of staying high for a long term. According to an Economic Times report, a whopping 30% of Indians invest in gold as it is an easy way to invest money and doesn’t require any documentation.

  1. Stocks:

Stocks are a type of hit and miss investment wherein you can invest in the share of a company that may or may not give a high return on investment (ROI). As an investor, you must find the best stocks to invest in by gaining knowledge about the stock market. Stocks are usually bought with cash which implies there are no hidden charges or extra fees attached to them. The purchasing and selling process of the stock is simple, and if an investor thinks that the price of a stock he/she purchased has increased, they are free to sell them at any given time.

  1. PPF (Public Provident Fund) And EPF (Employee Provident Fund):

PPF and EPF are risk-free investments giving ROI of about 7%. Backed by the Government of India, there are several benefits of investing in EPF and PPF like the interest earned on the investment is tax-free. In an EPF account, the employer and the employee both pay an equal amount for the investment and in the case of PPF, anyone can open an account in any bank with a minimum amount of Rs 500. The maximum deposit you can put in your PPF account is Rs 1,50,000 a year, which can be deposited 12 times, and not necessarily each month. PPF has a tenure of 15 years, and if you wish to withdraw the money before 15 years, you’re subject to certain conditions.

  1. Bonds:

Different companies in diverse industries issue bonds to raise funds from the investors who purchase them. There are different types of bonds such as ones which offer regular interest to the investors and some guaranteed return once the bond has matured. It is entirely up-to-the investor to determine which type of bond he wants to invest in. The bonds are easily available, and the investor doesn’t have to go through a lot of hassle to get the desired bonds. Moreover, the bonds can be bought directly from the broker to avoid extra fees or hidden charges.

  1. Bank Fixed Deposits:

Bank fixed deposits (FDs) is another attractive investment option for the common man which offers fixed returns. One can invest in a bank FD  via Net-banking or by visiting their bank. FDs are accessible in a wide range of tenures with a minimum tenure of 7 days and a maximum of up to 10 years. One can invest in any tenure depending on their time limit at the rates offered by banks.

To build a corpus, you must invest your money in the right financial instrument because doing so will help you increase your earning potential. So, if you are someone looking to grow your money manifold, the options mentioned above are some of the best investment options for you.

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