Low-Risk Investment Ideas for Big Returns
Nandini has saved up a small amount of money for her future and wanted to make a low-risk investment with high returns for her financial security. Upon projecting such an idea to her friends and family she was advised against it because of the high risk of losing money in such cases. One of her friends who worked in a bank informed her about low-Risk Investments to which she gave an active thought and even wanted her best friend Esha to invest in these investments. Later she got huge returns with very minimum or no loss at all.
Categories Of Low-Risk Investment To Invest On
Types of Low-Risk Investments from where we can also make huge returns are :
1. Fixed Deposits:
It is the simplest and most popular form of investment because bank fixed deposits are considered to be the safest and best options for long term investment. The rates of such investments vary with different banks, but fixed deposits are safe options that provide a significant amount of money on maturity. Such investments can be made online as well as by visiting the branch office of the bank. The time period for a fixed deposit ranges from 7 days to 10 years at the maximum. So the investors can choose to invest as per their needs.
2. National Saving Certificate:
These are Saving bonds provided by the Indian Government, and as a part of the Indian Post Service, these are available at any post office of India. It can be brought for various denominations – Rs. 10,000 , Rs. 5000, Rs. 1000, Rs. 500 and Rs. 100. NSC offers two maturity periods i.e, 5 years and 10 years. The interest rate is 8% per annum along with the benefit of tax exemption upto a maximum limit of 1.5 lakh under section 80C of the IT Act. , makes it one of the best investment plans with low risk and huge returns.
3. Public Provident Fund:
Introduced in the year of 1968 by the ministry of finance, Public Provident Fund is a well-known long term investment option that offers both savings and tax returns. One needs to make a minimum yearly deposit of Rs.500 in order to open & maintain a PPF account. Investment of upto 1.5 lakhs is the maximum limit and a strict lock period is maintained on these accounts. The money in whole can only be withdrawn only after the maturity period is over.
4. Mutual Fund Investment:
Many people prefer to invest in equities and securities. It is a type of investment where many investors put their money together to earn returns on their capital in a time period. This money is handled by professionals who invest it in different securities and the returns ( gain or loss) are shared collectively in proportion to their contributions to the fund. Now returns for mutual funds depends on the market performance of the fund. These may have a bit of high-risk exposure but it definitely offers many high returns in long run as compared to other investment options available.
5. Gold Investment:
As a country where everyone loves gold and is even believed as a form of the goddess of wealth, gold is more a prudent investment material in short term investments. These types of investments are very safe and stable for uncertain times for example during banking sector crisis, inflation or social unrest. Hence, investing in gold is Hence, investing in gold is wiser as the financial market trends never affect gold value. Also, its seen over the years that there is an increased demand for gold resulting in a 23.5 % return on investment.
Insurance is kind of becoming necessary for every individual, especially life insurance. Earlier life insurance was available as term plans offering only death benefits. At present insurance companies offer a wide variety of insurance products where we get investment benefit along with death benefits, both long and short term investment plan is available for us to choose from. All in all, we not only get good returns on investment but also protect ourselves and our family from uncertainty in case of health, accidents and even deaths.
7. National Pension Scheme
Ever thought of retirement, our grandparents have retired right and they have a pension as their retirement income. We never think of our retirement until it’s a little late. Many are not even aware that National Pension Scheme is the best retirement plan and a good long term investment. This scheme is regulated by The Pension Fund Regulatory and Development Authority of India (PFRDA) and an individual from the age of 18 years to 60 years can sign up for the scheme. The minimum investment amount is Rs.60,000 and there is no upper limit at all. Returns depend on the percentage of investment done on equity and debt. There are even tax benefits in this scheme under section 80C of the IT Act. Thus, the returns are high compared to some traditional options.
There was a time when everyone believed saving up for the future is the way of life but in current times it is far better to roll up half the saved money in some investment for financial security. Investments if navigated in the right way at the right time will have amazing results. Choosing the best investment option is upon you as it can save you from market violation and successfully achieve your financial goals in life.
Is gold a good investment option in the recession?
Gold is a key investment option for many across the world. Gold always traditionally provides the much-needed stability in a volatile market. Taking the Covid-19 pandemic situation as an example the world has seen an uptick in gold prices while witnessing an economic downturn. If seen historically gold picks up when there’s a downturn.
How do mutual funds help manage risk?
Mutual Funds are collectively managed by a professional who invests in any type of securities. Mutual funds provide adequate diversification for better risk management and to keep one’s portfolio safe as it.