We all know that investment options for ourselves are quite an area of concern. But also, at the same time, a financially secure life must have money accumulation and returns that can make the future and your goals better. Also, it won’t always make sense to rely on savings alone, would it?
There are plenty of investment options out there. In this article, you will find out what you would like to opt for to create financial stability and security that would benefit you. So here, based on three main criteria, you can choose how you could start your investment journey with.
- Low-Risk Investments
- Medium Risk Investments
- High-Risk Investments
What is a Low-Risk Investment?
So in simple terms, low-risk investment is for an investor with lower tolerance. It means the investor seeks little to no volatility in the investment portfolio. The people who opt for these investments are usually retirees and more, who have spent years making a nest egg. They rely on fixed income instruments, and the returns from these investments are always guaranteed.
What is a Medium Risk Investment?
Some investors are quite comfortable with moderate-risk investments on the table. These returns are relatively higher when compared to low-risk investments. They are the investments that have a certain level of risk, but at the same time, they hold higher returns.
What is High-Risk Investment?
A high-risk investment does not exactly have a guaranteed return. These are generally high return investments in India as the returns on these investments, without a doubt, are quite high if invested wisely. But the issue arises when the returns are not assured, and there are chances it might result in losses. The investors who pick these kinds of investments are usually the ones who are pretty savvy and are keen on the understanding of securities and more. There stands no limit to the gains in high-risk investments, but great gains come with risks too.
A Few Low-Risk Investment Options
- Fixed Deposit – They are always considered the safest among investment options. Through a fixed deposit, you can accumulate high returns from various FD schemes. The fund is always secure and guarantees returns without any market fluctuations. Most importantly, a fixed deposit does not depreciate the principal amount.
- Public Provident Fund – A public provident fund is a Government-backed investment option. It provides you with a risk-free return, which also makes it one of the best investment options. The interest that is received over the amount on this scheme is revised and paid by the government every quarter.
A Few Moderate Risk Investment Options
- Balanced Mutual Funds – A balanced mutual fund is subject to market risks, but it can be the best investment to grow money multifold. When you have a lower risk appetite but want higher returns, a fixed income mutual fund or monthly systematic investment plan can be your best investment option.
- Debt Funds – Debt funds; are mutual funds that would invest in fixed income securities such as bonds and treasury bills. These have monthly income plans, or so that assure some sort of locked-in money and not a total loss. They definitely have a low-risk ratio when compared to high-risk investments.
A Few High-Risk Investment Options
- Direct Equities – Direct equities are also one of the best investments for a long-term purpose. It is an equity share of a company, binds in legal terms which relate to company ownership. When you buy an equity share, you get the right to be involved in the company’s decision-making. But equities do also hold a high hand when it comes to risk.
- Equity Mutual Funds – Equity mutual funds are funds that will primarily invest in stocks. You can invest your money in these stocks through SIP, little by little or lumpsum. It suits savvy investors who are experts in the market. As you know, it is quite high when it comes to the risk involved. Your profits can be immense, but so should be your risk appetite.
Note – Although these instruments fall under High risk, they yield high returns as well. Investors should access their risk factors before investing and conduct due diligence.
Merely saving can be your way to financial stability, but would it really be enough. What if you are starting off your retirement savings later, which means you cant make all of it just with saving? So investments are always a good option, and this article will help you to choose from the best investment plan in India. Moreover, you always have the chance to choose from low risk, moderate risk, and high risk.