The rise in market volatility has resulted in reestablished pressure for many investors. While it might be hard to stay cool during a noteworthy market decline, discover that instability is a regular part of investing.
Everyone needs a risk-free investment with high returns right away and a surety of principal money as well. This is the motivation for numerous investors who consistently keep a check for top investment plans where they can twofold their cash in a couple of months or years with hardly any risk.
Top 5 Ways to Invest Your Money for Best Returns
Let’s have a look at the 5 best ways to invest your money based on the risk involved.
The present market is erratic and thus the beta is high for stocks. Implying one should be more focused on surviving and be safe in the current scenario than to be focused on profit, gains and returns. Following are the 3 three most secured low-risk investment options in 2020:
- Fixed Deposit:
Fixed deposits are very popular fixed-income investment options. Veraciously, FD propounds fixed returns over the investment tenure.
What is fixed deposit account?
Fixed deposit is a type of time deposit scheme offered by banks, post offices, and NBFCs (Non-banking Financial Companies) like Bajaj Finance, where you can deposit money for a higher rate of interest than savings accounts. The returns are payable monthly, quarterly, or annually, as per your choice.
FDs offer cumulative and non-cumulative options of investment. In a non-cumulative option, the interest is paid as per underwriting, whereas in the cumulative option, the interest is reinvested and payable at the time of maturity. This makes it one of the best investment options in India. The FD rates in India are attractive, ranging from 6.50 (for regular account holders) to over 7 (for senior citizens) for the tenure of 1 year.
Apart from offering high FD rates in India, they offer a range of tenure (minimum – 7 days, maximum – 10 years) and the investors can choose the investment as per their investment horizon.
As the only Indian NBFC with an international rating of ‘BBB’ by S&P Global, Bajaj Finance fixed deposits is the safest investment alternative to park your savings and enjoy interest rates up to 7.85%.
Apart from one of the highest interest rates in the market, Bajaj Finance FD provides you with several value-added features and benefits such as flexible tenor options, the facility of loan against the deposit, online application process, etc.
- Public Provident Fund
PPF scheme offers an attractive rate of interest. The current interest rate on PPF is 7.10%, effective from 01 April 2020. Moreover, no tax is required to be paid on the returns that are generated from the interest rates.
A consistent gainer always will give a return in the long run. Presently, the gold market is buoyant which ensures the investors a good profit. So it is a good time to invest in ETFs as they arise day-by-day.
Medium Risk investments
Medium risk investments are long-term investment instruments offering moderate returns, with around 5-12% of the interest rate. Shares, bonds, property and stocks are some of the examples of medium risk investment alternatives.
- Debt mutual funds
Being less risky, debt funds are suitable for investors looking for steady returns. By investing in Debt funds you invest in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial paper etc.
However, these mutual funds are not completely risk-free. Therefore, you should study related-risks carefully before investing.
As the name suggests, a high-risk investment is the one which carries a high degree of risk. It implies that there is a possibility of losing a substantial amount (or all) of your investment.
On the flip side, the potential benefit of a high-risk investment such as Direct Equity is that there is a chance that you could make a very high return on your investment.
- Direct equity
Investment in stocks is not something that always floats one’s boat. It’s an unstable asset class and there is no assurance of profits. Further, not only is it hard to pick the right stock, timing your entrance and exit is additionally difficult. The only silver lining is that when contrasted with all other asset classes, equity has been able to deliver higher than inflation-adjusted returns.
Where to Invest?
The answer to this question totally depends on both your earning and spending. Analyze your financial goals first, try and figure out how much money you would require for each goal, and diversify your investment accordingly. Nevertheless, what amount you need, a specific portion of your portfolio ought to consistently be in a stable and safe investment option like a time deposit scheme i.e Fixed Deposit.
Why invest in Bajaj Finance Fixed Deposits?
Apart from offering one of the highest fd rates in India, Bajaj finance FDs offer you numerous value-added features such as:
- Pre-mature withdrawal
Awarded with ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating, Bajaj Finance Fixed Deposits allows you to withdraw your money prematurely in case of emergencies. With 7.85% of interest rate, it offers one of the highest and best FD rates in India.
- Loan against FD
Bajaj Finance FD account holders can avail loan up to 75% of their FD amount while they keep earning interest on the rest of it. So in case of urgency, rather than breaking his FD one can go for loan option with cheap interest rates.
You can start investing in Bajaj Finance Fixed Deposits with a minimum deposit amount of Rs. 25,000 and enjoy interest rates up to 7.85%.
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.