There is nothing in the world that makes a man happier than having a good amount in their bank account. Many investors try to make investments in a way to get a high return as soon as possible without having the risk of losing money. But it is impossible to make such investments, which gives high returns and low risks as they don’t exist in the world. The universal formula of investment is “Risk is proportional to the returns”.
So if you are making an investment in the low-risk area than chances of getting a return are very low. By investing in a high-risk area allows you to get higher returns than we expected.
|Investment Types||Minimum Investment||Minimum Period|
|Direct Equity||No Restriction||No Limit|
|Mutual Funds||RS. 500||No Limit|
|National Pension System||No Restriction||Till 60th age|
|Public Provident Public Provident||RS. 500||15 Years|
|Bank Fixed Deposit||RS. 1,000||7 Days|
|Senior Citizens Saving Scheme||No Restriction||5 Years|
|RBI Taxable Bonds||RS. 100||7 Years|
|Real Estate||No Restriction||No Limit|
|Gold||No Restriction||No Limit|
|Post Office Monthly Income Scheme||RS. 1,500||5 Years|
|Company Fixed Deposit||RS. 2,000||12 Months|
|Recurring Deposits||No Restriction||6 Months|
|Initial Public Offerings||No Restriction||No Limit|
|Sukanya Samriddhi Yojana||RS. 1,000||21 Years|
Direct Equity is also known as the share purchase. You need to be sure on how to examine the share market stocks to do trading. This is one of the best in the given list above to make investments for a long period of time. Indirect equity you will get a more and higher return when the investment period exceeds more than the 15 Years, as it shows that you get more and more return when you give more time.
Mutual funds follow a system which collects the money from the investors and invests the money instead of that individual. They charge some basic amount of fee for making those investments. The individuals who like to invest in equities and choose to balance the risk and return in the stable form choose to make the investment in mutual funds. Making an investment in the share markets using mutual funds are trending nowadays. Mutual funds are the best investment plans for a long-time haul. These funds are the best one when compared to others for giving better returns.
National Pension System
The national pension system is initiated by the government to provide a solution for the supply of pensions. These funds invest in government security, equity bonds as the will of investors. This system gives us two choices for making investments.
Active allows the investments to automatically get invested in several assets, but active gives us the choice and allows us to select the investment plans on our own. The interest you gain from this pension system is tax-free, but if anyone chooses to get the pension after the maturity then the money will be taxable.
Public Provident Fund
Public Provident Funds are the secure and the safest investment funds among the other investment plans. You can be able to earn the compound interest from this fund and it will be locked for the 15 years as you can also able to extend the time period for the five years. The disadvantage of this fund is that you can only be able to withdraw your amount at the last of the 6th year.
Bank Fixed Deposit
Fixed bank deposits are known to be fixed income provider, this gives the fixed returns on the investments holding. By the banking guideline, the returns are paid by the monthly, quarterly or even annually. Depending on banks we are dealing with two sets of options they are
In cumulative options, the interest amount is invested with the fixed deposit and can be paid at the maturity, whereas a non-cumulative option will be paid under the writing form. These investments can be paid online or even by the visiting of any branches of the banks you choose.
Senior Citizen Saving Scheme
Senior Citizen Saving Schemes is one of the risk-free investments as they even don’t have taxes, but the only catch here is that is for the senior citizens only. The senior citizens need to be above the age of 60 years to gain this scheme, and it also offers them a regular set of incomes. This investment plan gives the best interest of 8.6% per annum which will be an attractive option. The holding of this scheme is 5 years and can be extended up to 3 years, whereas the investment limit is under 15 lakhs.
RBI Taxable Bonds
RBI taxable bond offers the interest of 7.75% per year and can behold to a minimum of 7 years. They are provided as the Demat mode only and can be credited to any of the bond ledger accounts of the invested individuals. The bonds will be given at a rate of Rs 100 as the proof of investment as the investor is the one who bought the holding. This investment also has cumulative and non-cumulative options.
Real estate is one of the quicker growing systems in India. This real estate holds the major sectors such as commercial, housings, manufacturing and more. Getting a flat or land is considered as the best investment plan in India. It is because the price of the property increases within the period of 6 months as it makes the risking factor as very low.
The investments in the gold are one of the oldest ways also the value of gold will always increase quickly even within a short period. It is because there will always be a demand for gold which makes the price of gold increasing. So only during some of the occasions, the gold will be bound to be reduced. If you are looking forward to investing in the gold there are plenty of options out there like gold ETF, gold mutual funds and gold bars, etc.
Post Office Monthly Income Scheme
Post Office scheme has an interest of 7.6% per annum, as this is one of a major investment plan in this list which provides the low-risk factor. This scheme is very suitable to the individuals who all are retired as this has a monthly income plan which helps them to acquire regular income. This is a government-related scheme, which has no risk and also the return rate is low when compared to others.
Company Fixed Deposit
When compared to bank fixed deposits this gives the higher interest rate. But you need to be careful when you are selecting the investment duration because you cannot be able to withdraw the money before the completion of the investment period. Company fixed deposit won’t have any insurance benefits and also it doesn’t come under the Reserve Bank of India’s control. The individuals who are interested to invest for a long period can choose this investment option.
This deposit is known to be the safest way to make investments as we can be able to open a recurring deposit in any post office or banks. Also, it provides interest in a good amount of period. Recurring deposits are available in all forms of interest options as it allows you to choose monthly, quarter, half and also yearly options for the interest.
Initial Public Offerings
The initial public offering is considered as the act of offering the stock values of a certain company to the public stock trade. So it is a very rare opportunity as it will be only available as one time offer for each company. It is a more attractive one if any of the major company launches this offer. This is a long period of investment only with having less amount of the risk factor.
Sukanya Samriddhi Yojana
Unlike other investment plans, this account can be only opened by the legal guardians of a girl child. It is because this was introduced to advance the prosperity of the girl children. The amount of interest offers this account has been 8.6% per annum. This plan also has the option to avail the interest monthly or you can get them as the compounded interest in the annual period. As per the act in the year 1961 by income tax, the amount benefitted by this account is excluded from the tax payment.
The investments that are mentioned above have both the fixed-income and the market-linked income. Market-linked return is based on the higher return policy, but also it is a vulnerable one. While fixed income helps to acquire the wealth in a slow stable way which will take some time as it is a long time plan for getting interested.