What is an investment and low-risk investment ideas?
Making money is one of the most important things in life as it will help you to enjoy an enhanced lifestyle. There are many ways by which you can make money but investing your money is the best method because it gives you a higher return than the other methods. Moreover, you can make money even with a small amount and then use the profit for something else. For instance with gold you can just search for today’s gold rate in Nagpur or Jaipur and then invest whatever amount you are comfortable with. This is why people are always looking for good investment ideas so that they can earn a decent amount of money for their future needs. But it has always been difficult for beginners to select the right type of investments because there are so many options available like the stock market, mutual funds, real estate and precious metals. So if you are also looking for some good investment plans, here are some great and low-risk investment ideas that will help you to get started.
- Mutual Funds:
A mutual fund is a type of professionally managed investment fund that pools money from many investors to invest in securities such as stocks, bonds, short-term money market instruments, and/or other assets. Mutual funds are generally considered to be one of the best options for low-risk investors. It is advised that one should not invest more than 5% of their total portfolio in mutual funds if they want to have a low-risk investment option in their portfolio. This also helps in diversifying the risk attached to individual stocks. One type of mutual fund is index fund which portfolio is built to track the returns of market index. If you are looking for one of the best smid index products, check out this article on Vanguard Small Cap Index Fund.
2. Post Office Schemes:
These schemes are very similar to fixed deposits and they come with slightly higher interest rates than those offered by banks. These schemes are very safe and easy to avail of with guaranteed returns upon maturity. Post Office offers several schemes like National Savings Certificate (NSC), Public Provident Fund (PPF), Monthly Income Scheme (MIS), Senior Citizen Savings Scheme (SCSS), Sukanya Samriddhi Account, Kisan Vikas Patra (KVP) and the recently introduced Post Office Time Deposit Account.
3. Debentures:
Debentures are unsecured loan bonds issued by companies that promise a periodic interest payment to the debenture holders. When a company needs money, it can either borrow from a bank or issue debentures. The interest on debentures is paid out of the company’s earnings before any dividends are paid to its shareholders. Hence, debentures offer less risk than shares but more than bank deposits. Secured and unsecured are the two main types of debentures. Secured debentures are backed by assets of the issuer whereas unsecured ones do not have any backing. It is best to opt for secured debentures since they offer lower risk with higher gains.
4. Digital gold
You can also invest in digital gold with very minimal investment and be rest assured that you will lose your money. This is because traditionally gold rarely ever drops in price. Moreover if due to certain geopolitical conditions the price does fluctuate negatively it is almost guaranteed to rise back up. Keeping track of digital gold is very easy before or after you have invested. Just use a search engine to search metrics such as today’s gold rate in Dindigul or for any other city and you will get all the information you need.
