What Investments Have Positive Expected Returns Beside the Stocks in India?
This would be one of the most important and frequent questions that would pop up in our mind as it makes way for the alternates of stock investment. Well, there are certain investments in which an investor can expect positive returns without the risk of losing principal money. In this blog, we’ll be discussing about few high return, low-risk combination in an investment product.
Investing in stocks is always a good option and it’s a volatile class of asset with probable returns. Equity investment is good for long-term periods that delivers higher inflation adjusted returns compared to other asset classes. To reduce the risk to a certain extent, you could diversify your investment portfolio across sector and market capitalization. Open a DEMAT Account to directly invest in equity.
Debt Mutual Funds:
If you’re an investor who wishes to earn steady returns, then it is time to choose debt mutual funds. These stocks are less volatile and less risky in comparison with equity funds. In Debt mutual funds, you would choose to invest in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial papers and other money market instruments.
NPS and PPF:
NPS or National Pension System is a long-term retirement investment managed by Pension fund Regulatory and Development Authority (PFRDA). The NPS is a mix of equity, fixed deposits, corporate bonds, liquidity funds, and government funds among others. By analyzing the risk appetite, an investor can decide the how much funds need to be invested in equities through NPS. PPF has a long tenure of 15 years and the interest rate on PPF is reviewed every quarter by the government.
Bank Fixed Deposit:
The bank fixed deposit is a safer choice for investing in India. Under the deposit insurance, each depositor in a bank is insured up to a maximum of Rs.5 lakh for both principal and interest amount.
Real Estate & Gold:
Investing in real estate is a wise option by determining the value of the property and location . If you do not intend to live in it, you can also earn rental income and capital appreciation for the property. Owning gold assets in the form of jewelry has its unique concerns like safety and high cost.
Every investor would prefer to invest their funds on less risk assets to gain higher returns from the investment. Investing in stocks will help you lower the risk and volatility of the investment. Hence, diversify your investment options and choose the best performing stocks in the market.
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For more info, visit the official website of Goodwill or make a call on +91 80122 78000 to trade your stocks smartly and efficiently. Stay connected with Goodwill’s Facebook Page and get instant live updates on your stocks.