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Tuesday, October 3, 2023

Top 5 investment options for you to get high returns from your money

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Investing is a key part of wealth-creation. In this article you will find top 5 investment options to get high returns from the money you have invested.

Investing allows you to fight inflation and achieve your financial goals while also helping you make your financial future stable. Rather than having your money remain in your bank account, you can invest it in several routes such as stocks, shares, mutual funds, fixed deposits, and more.

The investment paths you must take are determined by your investment objectives, liquidity requirements, investment horizon, and risk tolerance. Risk appetite is an important factor to consider, especially in today’s world. Here’s an overview of the best investments for you based on your risk tolerance to help you pick.

Here are the top 5 investment options to maximize the returns from the hard earned money you have invested:

Invest in property

The place you reside in is for your own use and should never be regarded as an investment. You may buy a house where you don’t plan to live. That house can serve as an investment. The location of the property is the single most essential aspect in determining the value of your home as well as the rental income it may generate. You can get high returns from real estate investments in not one but two ways. One of those ways is capital appreciation, while the other is rental income.

Buy and sell gold

Possessing gold in the form of jewellery has its own set of concerns, including safety and high cost. Then there are the’ making charges,’ which normally run from 6 to 14 percent of the cost of gold (and may go as high as 25 percent in case of special designs).
There is still an alternative for individuals who want to purchase gold coins.

Nowadays, several banks sell gold coins. Buying and selling of paper gold is a different way of investing in gold. It is less expensive and can be accomplished through gold ETFs. This type of investment takes place on a stock exchange, with gold as the underlying asset.

Invest in direct equity

Buying and selling of shares may not suitable for everyone because it is a volatile asset type without any guarantee of profits. The only thing good about it is that, over long periods of time, equity has been able to outperform all other asset classes in terms of inflation-adjusted returns. At the same time, the chance of losing a significant amount, if not all, of your cash is great unless you use the stop-loss approach to limit losses. You could diversify between sectors and market capitalisations to lessen risk to some extent.

Consider investing in equity mutual fund schemes

Equity mutual funds primarily invest in equity stocks. The Securities and Exchange Board of India (Sebi) Mutual Fund Regulations asks an equity mutual fund scheme to invest at least 65 percent of its assets in equities and equity-related securities. You can manage an equity fund actively or passively, but the ability of a fund manager to generate returns is critical in an actively traded fund. Index funds and exchange-traded funds (ETFs) are passively managed and follow the performance of the underlying index. Equity plans are classified based on their market capitalisation or the sectors in which they invest.

Invest in debt mutual fund schemes

Of the top 5 investment options, debt mutual fund schemes is ideal if you want consistent returns. They are less volatile and so deemed less dangerous than equity funds. Debt mutual funds invest largely in fixed-income assets such as corporate bonds, government securities, treasury bills, commercial paper, and other money market instruments. But, like all mutual funds, even these have risk. They are subject to hazards such as interest rate risk and credit risk.
Hence, before investing, you should research the associated risks.

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