While looking for the ‘best’ investment prospect, investors want a platform to earn them the highest profit with the least risk. However, it is pivotal to understand that every investment has some trouble. Some investments bear high risk but potentially yield higher inflation-adjusted profits than other asset classes. At the same time, some investments have a low-risk return and, therefore, lower returns. When deciding on an investment avenue that fits you best, evaluate your risk profile with the risks linked to the product before investing.
Here are the top seven investment options with varying levels of risk that are considered good investment options:
- Mutual Funds:
A Mutual Fund is a collection of investments offered by various investors who intend to safely earn or preserve their money. This collection of funds aims to invest in different securities so that the investors can efficiently expand their savings without risking much money. Mutual funds are run by 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, find the leading mutual fund, and begin investing with them. With mutual funds, you don’t fear losing money, enabling you to have a diversified portfolio with low risk.
Investing in real estate is considered one of the best old-school investment options. Buying a house or an apartment is a way of securing money and your future. People typically 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 other investment products. Investing in real estate is a long-term benefit as when people need extra income in their 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.
- Gold:
Gold is one of the oldest investment options preferred by the commoner. Many conventional investors believe investing in gold is an excellent way to keep money safe. Some prefer to buy jewelry 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 people prefer to invest in gold as opposed to other investment options is that the gold market has a record of staying high for the 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.
- 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, implying no hidden charges or extra fees are attached. The purchasing and selling process of the stock is simple, and if an investor thinks that the price of a stock they purchased has increased, they are free to sell it at any given time.
- PPF (Public Provident Fund) And EPF (Employee Provident Fund):
PPF and EPF are risk-free investments, giving an ROI of about 7%. Backed by the Government of India, investing in EPF and PPF has several benefits, such as tax-free interest earned on the investment. In an EPF account, the employer and the employee pay an equal amount for the acquisition, 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, not necessarily monthly. PPF has a tenure of 15 years, and if you wish to withdraw the money before 15 years, you’re subject to certain conditions.
- 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 that offer regular interest to the investors and some guaranteed return once the glue 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 hassle much to get the desired bonds. Moreover, the bonds can be bought directly from the broker to avoid extra fees or hidden charges.
- Bank Fixed Deposits:
Bank fixed deposits (FDs), which offer fixed returns, are another attractive investment option for the commoner. 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 term of 7 days and a maximum of up to 10 years. One can invest in any assignment 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 want to grow your money manifold, the above options are some of your best investment options.
