Top 10 Best Investment Options with High Returns

In today’s world, earning money may not be enough to fulfill your financial goals and take your dreams towards fruition. Instead of letting your hard-earned money lie idle in your bank accounts, you may consider investing in investment options such as stocks, equities, mutual funds, Fixed Deposit, or more.

Though there are so many investment options available, making the right choice may get overwhelming. To help you decide the best investment options to consider, here’s a rundown on different types of investments and their returns.

Types of Investments

Investors usually take investment decisions, based on their risk appetite. Thus, these investments are classified into different risk levels, which include low risk, medium risk and high risk. Here’s a look at these investment options in detail:Low-risk investments – These are instruments which pay fixed income – irrespective of the changes in the business or economy. Bonds, debentures and Fixed Deposit fall under this category. Also, special investment vehicles – PPF, EPF, SCSS, Sukanya Samriddhi, National Savings Scheme and other small Post Office Schemes which are created by a government statute for specific purposes are low risk as they guarantee the returns. The returns are periodic and pre-determined.

Low-risk investments are not linked to the stock market movements and are usually governed by the interest rate movements of the financiers. However, there is always the returns are always guaranteed.

Government bonds and life insurance policies provide good returns, however, they have long lock-in periods. So, you will have to wait for a long time to earn substantial returns from these investment options. Fixed Deposit is one of the very few low-risk investments that offer stable, high returns and immediate liquidity.Medium-risk investments – These are investments which might have a certain percentage of risk but these also pay higher returns to investors willing to invest in them. Debt funds, balanced mutual funds, and index funds fall in this category.

Such instruments do have an element of debt and stability, but they have their volatility linked to the markets which can hamper your principal amount. The irregularity in earnings can make any fixed income from such investment impossible.High-risk investments – These are investments where there is no limit to the upside along with the downside of risk-returns. These are stocks of companies, equity mutual funds, even stocks, and derivatives. The return on these instruments can give huge returns as well as chances of losses depending on various external factors to the company and internal ones. The quantity and timing of returns on these instruments are not fixed. Hence, they are at high risk.

Best Investment Options in India

Stocks – Buying shares of companies is a one time investment plan. It is one of the easiest ways to invest your money in any business. These are part ownership units of the company which each investor buys. You can trade these shares in a marketplace called the Stock market where all trades are done electronically. It is one of the most lucrative and riskiest investment options to buy.

Fixed Deposit – These are the safest investment where you are assured fixed interest at fixed intervals of time. It provides options for investing and flexibility to pay. Fixed Deposit is offered by banks and NBFCs (non-banking financial companies). Short term investment plans with Fixed Deposit can help you protect your funds against inflation.

Mutual Funds – These are collective investment vehicles managed by a fund manager which pools people’s money and invests in stocks and bonds of various companies and create a return. They are in the same category of risk as stocks, though slightly less.

SCSS – Senior Citizens’ Saving Scheme is an investment plan for those above the age of 60 years. It is a government sponsored, long-term saving option which has been designed keeping in mind the requirements of retirees. This investment option pays a high and steady rate of interest as prescribed the government from time to time.

PPF – Public Provident Fund is one of the most common and trusted investment plans in India. It pays the interest rate annually and requires a minimum of Rs 500 per annul investment. It has a life of 15 years with partial withdrawals allowed of the corpus at various points. This option also pays a high and steady rate of interest as prescribed by the government from time to time.

How to Invest?

This is one of the most basic questions that people ask along with where to invest. The answer to both these questions depends on your earnings and spending. First, analyze your financial goals and how much money you require in each time frame. A certain portion of your portfolio should always be in a stable and safe investment option like Fixed Deposit. You can determine the amount and invest per each time frame.

Now you make an online investment in Fixed Deposit online from the comfort of your home. Research a bit to find out what are the best available options for you and start investing. All the best!

#Source : bajajfinance

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