Investors always on the lookout for the top investment options where they can get high returns as fast as possible with minimum risk of losing the principal amount in India. The truth is what we mostly dreamed of even though it is not said loud. The reality is there is no investment option in this world where you could just simply remove the risk out of an investment plan and there is a direct correlation between risk and return.
There are various different types of investment options available out there. Such options are great in their own ways. It is important to understand the nature of returns and risks only. A person cannot be proficient in all segments. If one is proficient in intraday trading it doesn’t mean he/she will also good at real-estate investment too. Therefore if you plan to invest in then be sure to go through all the investment options to match your return-risk profile. MoneyMindz, India’s First Online Financial Advisory Portal has some investment options you must go through:
Direct Stock Investment
If a person is good at investing money and hold the knowledge of the stocks market then why don’t he invest directly in stocks? Also direct stocks investment is a viable option to make good returns fast. We can see that over long periods equity has been able to deliver high inflation-adjusted returns in no time. Don’t forget that high profits come with higher risks. It is a very volatile market and there is no guarantee of returns.
The prices of shares can be seriously influenced by the major and minor announcements, events, and performance. If a person is to invest in direct equity then you need some serious skills to understand and time the market. Therefore if you have good risk tolerance then you can go for direct stocks investment otherwise it is not your cup of tea.
Equity Mutual Funds
Investors who are scared to invest in direct equities can opt for equity mutual funds as an investment to invest their money in. Instead of a single stock, you will be buying a bucket of stocks called portfolio. In such a case, the good thing is that if you are not from financial background or do not hold any information on investment, even then equity mutual funds is a great way to invest in stocks to get average returns.
The volatility is also quite less in equity mutual funds in comparison of direct stock investments. It doesn’t mean it is entirely risk-free. And it is ideal for investors who have low-risk tolerance.
Debt Mutual Funds
These funds are also the type of mutual funds where an investor can invest in debt or financial securities such as corporate bonds, government bills, treasury bills, and money market funds etc. Such funds benefit investors by giving a fixed maturity period and rate of interest to receive a steady return over time. It is best for investors who have a low tolerance for risk and planning to create wealth over time.
Fixed Deposits (FDs)
Fixed deposits are one of the most traditional investment options in India which widely recognized for its fixed tenure and average interest rates. It is also to note that not all of us are experts in finance. Many of the investors don’t have skills, knowledge, and time. They choose investment options which required minimal attention and can give average returns without the loss of capital.
You need to keep in mind that market fluctuation doesn’t influence the fixed deposits. The FD user has a certain benefit of a loan of up to 90 percent of the total FD value in India. Therefore non-FD users generally pay high interest for personal loans but in the FD users can avail low-interest personal loans with ease.
Public Provident Fund (PF)
It is a fully-backed government scheme which not only offers an attractive interest rate but also fully exempted from the tax. This public provident fund is trusted by many Indians to invest safely in a provident fund scheme.
We can say that there are two kinds of investment options – fixed and market-linked. Fixed income investment options like provident fund and fixed deposits help in preserving capital as a long-term investment where one can have average returns with minimal or no risk at all. The market-linked investments are suitable for investors who have high-risk of tolerance and want to outperform the market to get high-returns in short period of time.
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