Investment Opportunities with Low Risk and High Return

Investments are a necessary part of an individual’s financial plans. We invest our savings from our earnings either as a security for unexpected crisis or as a medium to generate capital for specific goals. An investment scheme is selected on the basis of an individual’s age, risk tolerance, and purpose of investment. If you are looking for a risk-free investment that will generate high returns, here is a list of five of the best schemes you can consider investing in.

Fixed deposits

The option of investing in fixed deposit is the safest, since it does not involve any risks. In addition to that, fixed deposits also generate higher returns with fixed interest rates. The rate of interest offered varies from bank to bank ranging from 4% to 7.50%. Few NFBCs like Bajaj Finance provide FD interest rates as high as 8.20%.

Equity Mutual Funds

Even though mutual fund investments have market risks associated with them, equity mutual funds investment involves minimum risk. Along with that, long-term investments can also become tax-free. If the holding of your funds goes beyond 12 months, you enjoy tax-free returns. Additionally, the investment in mutual funds does not require high amounts of investment; you can even initiate the investment at just Rs 500.

Investing in equity mutual funds has several other advantages like diversifying your risks by investing in more plans with smaller investments. Investment in funds through NFBCs gives you an added advantage of professional guidance and fund management. The option of flexible liquidation of funds at any time can help you avoid estimated market risks.

Real Estate

Real estate is a great investment option for wealth building without involving market risks. If you have a higher amount to invest for a longer term, real estate is a low risk investment opportunity. As the volatility of the market does not affect real estate investments, it brings higher returns.

Being a tangible asset, the value of real estate can never go down to zero and the home owner’s insurance protects your investment. You can also get tax deductions on mortgage interest property taxes as well as depreciation on this investment. Moreover, the greatest benefit of investing in real estate is that it diversifies your portfolio which mitigates the risk of investments. However, it is an asset that cannot be liquidated easily, which makes it difficult to access your money instantly.

Life and Health Insurance

Talk about safe and smart investment and investing in insurance is the perfect option. By investing in insurance, you lend your money into safe hands along with providing coverage for your family. In addition to that, you can also attain a loan against your insurance coverage.

Retirement Planning Schemes- Pension Plans of NSC

When planning for minimum-risk high-return investment, one can also opt for setting up a retirement plan, senior citizen fixed deposit scheme, pension plans or senior citizen saving schemes. These investments generate periodic returns to serve as regular income. Thus, by investing in retirement scheme you enjoy high returns periodically without even having to worry about the market risks.

Considering that you have a clear idea about the high return low-risk investment options now, it is imperative that you analyse all these options before choosing your investment vehicle.

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