Posted by Top 10 Best Investment Options with High Returns
Investing always is an important and essential part of wealth creation, which helps you to build wealth for your future, fulfil your financial goals and assist you to stabilise your future financial goal. It is better to invest money in different avenues such as fixed deposit, mutual fund, direct equity and live stocks instead of leaving your money idle in your bank. There are various options that are available in the market where the investor can invest their money and can double their money in less time.
While selecting an investment avenue, first you are supposed to understand investment goals, liquidity requirement, and investment size and most importantly understand the risk appetite, it is a major factor to consider. Based on your risk appetite, we mentioned the best investment plans for you.
Investment products majorly categorised into a financial and non-financial asset. Financial assets further divided into a market-linked product such as (mutual fund and live stocks) and fixed income products such as bank fixed deposit, PPF and on the other hand the non-financial assets like investing in real estate and on gold.
How Risk Appetite Helps You to Choose Right Investment
Most of the investment carries a certain level of risk and volatile in nature, it affects your return on the investment. When the level of risk is high. Thus, there is a high risk of losing money.
Hence, these decisions are not so simple, it totally depends on your risk appetite, on the base of your risk appetite, we have categorized the investments plans here. Look at the different investment avenues.
What are the high-risk investments?
High-risk investment is not for everyone, it is best for those who they are market savvy investors have a deeper understanding of the market, securities and can able to bear the loss. In these types of investment, there is no limit of profit but the level of risk is high. Mutual funds, derivatives, stocks, and equity these instruments comes under the volatile investment.
What are the moderate-risk investments?
Most of the investors in India prefer to invest in moderate risk investment because profits are much higher than low-risk investment or fixed income instruments. If you are not so market savvy investor, then you can invest your money here because the chances of losing money is not so high like in high-risk instruments. This instrument carries debt and stability, but the volatilities associated with their returns. Achieving regular fixed income through these instruments is not possible.
What are the low-risk investments?
Knowledge of the market is not required if you are planning to invest your money because their returns are fixed and chances of losing money nearly to nil, government saving schemes, bonds, fixed income, debenture are the instruments, it is the best for low-risk investors. After investing your money in these types of investment, your amount gets locked in for a long time but you can earn substantial returns.
Here is a look at the top 10 investment avenues for you to invest
- Equity Mutual Funds: As per SEBI (securities and exchange board of India) regulation, mutual fund scheme supposed to invest at least 65% of its assets in equity related instruments. It is categorised into actively and passively managed. In actively traded fund, returns on investment totally dependent on the manager’s capabilities to generate more ROI. Index funds and exchange-traded fund passively managed.
- Direct Equity: Investing in stock is not easy, need a piece of market knowledge and get updated all time. It offers a higher return with risk because it is a volatile assets class and not provide any guarantee of returns. If you are interested to invest in the stock, only one thing you can do, invest your money for long period, then equity has been able to provide you higher returns than any other investment avenues. You can invest your money through Demat account.
- Gold: Most of us having gold in the form of jewellery and coin. There are few options are available for those who they are interested in gold coin investment. Many banks and other platforms such as Paytm, PhonePe an amazon selling gold coin online. Investment in paper gold is cost-effective can be bought through ETFs. Sovereign gold bond is another option where an investor can invest your money.
- Real Estate: Investing in real estate is another instrument where you can invest your money and get returns that depend on the property location. Investment in real estate offer returns in two ways one is capital appreciation and other is rentals.
- National Pension System: National pension system is a long term retirement investment plan managed by PERDA (Pension fund regulatory and development authority). It is a combination of equity, fixed deposit, liquid funds and corporate bonds and government funds. It is up to you how much of your money you want to invest, based on your risk appetite. After your retirement, it helps you to manage your life confidently.
- Debt Mutual Funds: Debt mutual fund schemes are considerable and suitable for all types of investor who willing fixed returns. It is less volatile and less risky compared to equity funds. Debt funds predominantly invest in fixed income-generating securities such as government securities, bonds, treasury bills and other money-making instruments. Before investing your fund in such types of instrument, you should study the market ups and downs.
- Public provident fund (PPF): PPF always the best and trusted investment option in India. It pays high and stable rate of interest annually as prescribed by the government from time to time. It provides partial withdrawals allowed of the corpus as per your convenience.
- Bank Fixed Deposit (FD): For investors searching for profitable returns with lesser risk, the Fixed deposit is one of the best and trusted investment avenue in India. You can stable and assured returns at fixed intervals of time by investing in a fixed deposit. Investing in this type of avenue, you do not need any specific knowledge. Even high-risk appetite investors preferred to invest in fixed deposit.
- Senior Citizen Saving Schemes (SCSS): Senior citizen scheme is a government-sponsored scheme and it is a long term saving option for individuals above 60 years of age or planning soon to be retired. It is the best way to get a steady and secure income and senior citizen can get a high and stable rate of interest, as declared by the government from time to time.
- Pradhan Mantri Vaya Vandana Yojna (PMVVY): Pradhan Mantri Vaya Vandana Yojna is a government-sponsored scheme aiming to provide an assured return of 7.4 per cent per annum for senior citizens aged 60 years and provide. The minimum Rs 10,00 you can invest and maximum of Rs 9250 per month with monthly, quarterly, half-yearly and annually payable option.
Here’s a summary of these investments avenues, on the basis of risk, tenure, and returns you can get:
| Aveues | Risk | Returns | Tenure |
|---|---|---|---|
| Stocks | High | Market-linked | Can be sold anytime |
| PPF | Low | 7.10% | 15 years |
| Mutual Fund | Moderate-High | Market-linked | depend on you |
| Fixed Deposit | Low | Assured | 7 days to 10 years |
| Senior Citizens’ Saving Scheme | Low | 7.40% | 5 years |
| Pradhan Mantri Vaya Vandana Yojna | Low | 7.40% | Start after the age of 60 years |
| NPS | Moderate-High | Market-linked | 1,3,5 years |
