What are the best things to invest in?

For most of the investors, the main aim of the investments is to get sky-high returns as quickly as possible. At the same time, they do not want to take risk of losing the principal amount as well. This is the reason people often ask for low-risk plans with high returns. Interestingly, such plans do not exist in reality. Risk and returns are the two sides of a river and run parallel to each other. If you want higher returns the risk will be higher as well and vice versa. You can see here for more information.

Thus, it is very important to select the investment options only after matching the risks associated with the investment option to your own risk profile. You can always consult professionals like Daniel Gordon GLD Partners to help you take the next steps. There are two investment categories in which all the investment options can be divided that are financial and non-financial assets. Those products that are linked to the market such as mutual funds are known as financial assets and those that not linked to the market such as gold are known as non-financial assets.

Here is a list of top investment options you can choose

Direct equity

You will need to open a Demat account with your bank to invest in direct equity. Please note that investing in stock is a high-risk option even if you are planning to go for a long term investment. You have to learn about the right stock, time of entry and exit and many other factors. Also, there is always a chance that you may lose a considerate portion of the principal invested. Thus you should know how to balance the investments in direct equity and think twice before making any investment. You can use services like Fast Invest for such investments.

Equity mutual funds

These funds mainly invest in equity stock. As per the regulations the funds have to invest 65 percent of the assets in equities and related instruments. These funds are actively and passively managed by the firms. In actively traded mutual fund the returns depend on the fund manager’s ability. On the other hand in passively managed funds the returns depend on the mood of the market. You can also try surety bonds etc. Visit stokesbonds.com for more guidance.

Debt mutual funds

Those who are looking for steady returns should opt for debt mutual funds. These funds are low risk in comparison to equity funds. These funds mainly invest in corporate bonds, treasury bills, commercial papers, government securities and more. As of now, you can expect returns up to 7.5 percent if you invest for five years.

Gold and other precious metals

One of the most favored modes of investment across the globe is to buy the purest quality gold and silver coins. The price of gold fluctuates frequently thus if you are planning to invest for a longer duration of time, it can be one of the best investment options. It is advised that you should not invest in jewelry if the main aim is investment only. You won’t have to pay hefty making charges when you buy gold coins to biscuits. Also, you can buy digital gold or precious metals bonds. Some countries also allow international investors to invest in such bonds.

Bank deposit

Bank deposits are one of the oldest modes of investment since banking became mainstream. You can invest in bank deposits for different durations. Longer duration means better returns.

Real Estate

A house is always one of the best investments you can make. If your income allows you to invest in real estate, you can find countless options in your city or in other emerging cities where you can move once the house is ready. If you are planning to invest in an already built house, you should keep in mind that complete inspection and paperwork is essential before you take the possession.

Final words

There are countless options available in terms of investment. You should not invest all your money in a single method. Using a blend of different investment options will provide you a wider portfolio and you can reduce the chances of losing principal amount.

Notify of
Inline Feedbacks
View all comments

Hot Topics

Related Articles