Top investment plans are chosen by the investors to get high returns with little or no risk. Investors aim to double their money without the risk of losing principal money. Unfortunately, a high-return, low-risk combination in an investment product, does not exist.
Before investing, it is important to match your own risk profile with the associated risks of the product while selecting an investment avenue.
Here is a look at the top investment avenues;
Direct Equity
There is no guarantee of returns for investing in stocks. It difficult to pick the right stock and furthermore your entry and exit timing also matters. However, over long periods, equity has been able to deliver higher than inflation-adjusted returns compared to all other asset classes.
Equity Mutual Funds
An equity fund can be actively managed or passively managed. These schemes predominantly invest in equity stocks. An equity mutual fund scheme must invest at least 65 percent of its assets in equity and equity-related instruments as per the mutual fund regulations current the Securities and Exchange Board of India (Sebi)
National Pension System
The Pension Fund Regulatory and Development Authority (PFRDA) manages the National Pension System which is a long-term retirement-focused investment product. The money can be invested in equities through NPS can be decided based on your risk appetite.
Bank Fixed Deposit
A bank fixed deposit is considered a comparatively safer (than equity or mutual funds) choice for investing in India. As per the need, one may opt for monthly, quarterly, half-yearly, yearly, or cumulative interest options in them.
Gold
Possessing gold in the form of jewellery has its own concerns such as safety and high cost. The alternate way of owning gold is via paper gold. Investment in paper gold is more cost-effective and can be done through gold ETFs.
ask@finomisgurukul.com
