Top Six Investment Options For Great Savings
People when they make investments, want to get high returns. But unfortunately, there are no such investments that come with low risks or no risks at all. Invariably, some always have some or more amount of risk involved.
While selecting an investment avenue, you have to match your own risk profile with the associated risks of the product before investing. Here is a low down on some fool proof ones:
Direct Equity: A volatile asset class, this one has no guarantees of returns. Here, timing your entry and exit is also not easy. The only silver lining is that over long periods, equity has been able to deliver higher than inflation-adjusted returns.
Equity Mutual Funds: These schemes predominantly invest in equity stocks. In an actively traded fund, the returns are largely dependent on a fund manager’s ability to generate returns.
Debt Mutual Funds: These are most suited for those investors who want steady returns. These are safer due to their nature of being less volatile.
National Pension System: NPS is a long-term retirement focused investment product managed by the Pension Fund Regulatory and Development Authority (PFRDA). This one is a mix of equity, fixed deposits, corporate bonds, liquid and government fund, amongst others.
Public Provident Fund (PPF): This one has a long tenure of almost 15years.So, the impact of compounding of tax-free interest is huge, especially in the later years.
Bank Fixed Deposit (FD): A bank fixed deposit is considered a comparatively safer (than equity or mutual funds)choice for investing in India.Under the deposit insurance and credit guarantee corporation (DICGC) rules, each depositor in a bank is insured up to a maximum of Rs. 5 lakh with effect from February 04, 2020 for both principal and interest amount.