If low risks are considered, then fixed and recurring deposits can be termed as the best investment options. You will get guaranteed returns and your investment will be safe and secure with the bank. But if you are willing to take additional risk for earning profits, then a list of options can be placed before you like shares, debentures, bonds, gold and real estate investment.
A middle-class person makes investment to get returns in future. He is not willing to risk his money. On the other parlance, a businessman can apply his risk-taking ability for earning higher profits. These days, banks and financial institutions are coming up with attractive investment options for both the classes. They are trying to attract the middle-class society to make investment in other forms of investing such as gold and bonds. Investors have started thinking, ‘Why not take the risk if I am getting higher returns?’ Investments can be graded according to the level of risks.
Deposits – Nothing safe and secure like this
You will never find a bank customer who does not have a fixed and recurring deposit account with his bank. Obviously, it is possessed with the ‘lowest risk’ feature. All you require for this investment is your savings and patience to wait for the outcome.
Share Market – ‘How’s the market today?’
We observe people around us who ask this question to the broker or their friends. In short, investment in share market has been advantageous for lakhs of investors till date. We cannot refrain from saying that it contains the higher risk in case the market collapses considerably. For overcoming this situation, you must have the core ability to face risks and tumbles and importantly, detailed knowledge about the share market.
Bond with the best
Bonds issued by government and companies are gaining popularity these days. These are extremely secure and safe with regard to future returns and principal amount. If you are looking for a secure future income, then bonds are truly the best!
Investing in not-so-glittering gold
Well, investment options such as gold ETFs and gold futures do not glitter as these are in the paper (electronic) form. But with low risk level, these investments are a better option. All you need is the familiarity with the existing gold market, products and changes in prices.
Starting with the start-up
If you are not aware about the investment options other than FD and RD, then you must never take a risk by investing in start-ups. It requires sufficient knowledge about the business domain and the entities. It can be highly risky if you are a beginner.
Real estate- residential and commercial
Since decades, real estate investing has been a boon to many investors. The risks are attached to it but can be controlled by selecting the right location and arranging your financials.
What if the share market collapses? What if the bonds market fail? What if the gold prices go down? What if the property prices fall considerably? Well, this ‘what if’ factor is nothing but the risks involved. FD, RD, bonds, real estate are the investment options are subject to lower risks. Gold, debt funds, share market, start-ups are risky as per the market conditions but can be tried if you are aiming for higher returns.
