8 Effective Investment Destinations to rely on
10 Sep 2018
The primary objective of almost every investor is to get sky-high returns and save money fast without encountering any risks to lose the principal amount. What’s more, this is the actual motivation behind why numerous financial specialists look for top best investment plans where they can twofold their wealth in a couple of months with barely any risk.
“No risk, no gain” — you must have hit upon this phrase, multiple times. It’s very obvious. Because wealth creation investing products that provide exceptional yields with no risks, hardly exist. Practically, risks and returns are inversely proportional. This implies — higher the risks, higher is the returns and vice versa.
Therefore, while choosing a particular investment plan, it is indeed necessary to check out the risk incorporated into it. For instance, there are many such investment destinations that offer high-swelling balanced returns but at the same time, associated with high risks, while there are some investments that generate low returns with low risks. This what you have to keep in mind.
Today, in this blog we have enlisted some top best investment options that you may categorize into two sectors — financial and non-financial assets. Financial resources can further be classified into market-linked products like Stocks and Mutual Funds and fixed income products like Public Provident Fund and Bank fixed deposits. On the other hand, non-financial assets can be further partitioned into golds and real estate.
Let us view them in details
- Direct Equity or Stocks: Investing in direct equity or stocks is not everyone’s cup of tea. As because it belongs to an unstable resource class associated with high risks. Therefore, choosing the right stock is essential, otherwise, you may fail to acquire your main objective. Though it seems to appear quite risky in nature, the only silver lining is that over a long period of time, you may possess sky-high returns, compared to all other assets.
- Equity Mutual Funds: Equity mutual funds is the method of investing in stocks. You may wonder — if there any difference between the two. Yeah. Both are the options to invest in stocks but they differ a lot from each other. According to the Securities and Exchange Board of India (SEBI) Mutual Fund regulations, an equity scheme has to invest about 65% of its assets at least in equities and value-related instruments. Such a fund can be managed both actively and passively. In an active mutual fund, the profits truly rely on the capability of a professional manager to generate returns. While the passive funds such as Index funds, exchange-traded funds (ETFs) track the underlying index.
- Debt Mutual Funds: Looking for the best safe investment with high returns in India? Then certainly it can be debt mutual funds. Why so? These offer stable and steady returns with less volatile and less risky features compared to equity funds. These mutual funds basically act upon fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial paper etc. Look through the statistics below, presently the 1, 3, 5 years market return is around 6.5 percent, 8 percent, and 7.5 percent respectively. In the end, no doubt investing mutual funds come with loads of benefits to awe you.
- National Pension System: Mutual Funds can be today’s buzz for the investors. But you can’t stop focusing on NPS or National Pension System. This is a long-term retirement option that is managed by the Pension Fund Regulatory and Development Authority(PFRDA). The base annual (April-March) commitment for NPS Tier-1 account to stay dynamic has been reduced from Rs 6000 to Rs 1000. This holds a blend of equity, fixed deposits, corporate bonds, liquid funds, and government funds. It totally depends on you and your risk appetite, how much amount you wanna invest in those equities through NPS system. Don’t you feel this is yet another best investments to make money?
- Public Provident Fund: Looking for wealth creation investing option at your young age? We guess Public Provident Fund (PPF) is one of the safe investment products that can turn to be an icing on your cake. Though PPF carries a long tenure of 15 years, it offers high tax-benefits, particularly in the later years. Whatever may be the pros and cons, since the premium earned and the principal invested is backed by sovereign guarantee PPF turns out to be the safe investment plans with high returns in India.
- Bank Fixed Deposit: Similar to other investment options, Bank Fixed Deposit can be the best destination for investing money for beginners. Based on Deposit Insurance and Credit Guarantee Corporation (DIGCGC) rules, an investor can be insured up to the extreme of Rs 1lakh for both principal and interest amount. Regardless, you may opt for monthly, quarterly, half-yearly, or yearly cumulative interest scheme, and this is something best about bank FD. However, the interest rate earned will be added to your income and will be taxed as per your income slab
- Senior Citizens’ Saving Scheme: Retired? Confused about where to invest money for good returns in India? This particular venture is mainly for the senior citizens of our country. Probably it should be the prior choice for every retired employee. Senior Citizens’ Saving Scheme recommended for the retired employees, can basically be availed from a post office or bank. It possesses a five-year tenure and can be extended further by three years, once it matures. As of now, the interest rate on SCSS is about 8.3 percent per annum, that can be paid quarterly and is completely taxable
- RBI Taxable Bonds: Looking for taxable bonds? Why don’t you reach out to RBI bonds? These bonds offer a 7.75 % rate of interest with a tenure of 7 years. You can issue them in demat format and credit them to the Bond Ledger Account (BLA) of the investor. In the end, you will be rewarded with a certified proof of investment, a Certificate of Holding.
Apart from these, Real Estate and Gold are the two more wealth creation investing options that you may prefer. Though there are many who prefer to survive on these investment options, we believe mutual funds, stocks, and all other above-mentioned options are the ways to have a safe and secure investment and to save money fast.
Originally published at www.wealthclockadvisors.com.