A wise man once said, “don’t put all eggs in one basket.” This should always be applied when dealing with investments.
No one should invest all of his/Her money in a single investment scheme. It automatically increases the risk factor. That’s why professional people continuously invest in different investment schemes to diversify the risk factor.
When it comes to investments, the only word that comes into the brain is Stocks; However, many other options are there for high return and lower risk factors.
Industrial/Commercial Land Investments
Everyone heard about the real state. It is a common term; however, most people don’t know that investing in it is one of the best investment options. Since the beginning, the land is one of the increasing sources of returns. Commonly people invest in residential property, which is not suggested by professionals because its productivity is very low.
While purchasing industrial/commercial land, you always have to buy it in a developing state where development is high. The government policy of that area should be appropriate towards industrial products. Below are some reasons for choosing industrial land over residential land:
►Rental returns are higher than residential land.
► Vacancy risk is lower than others
►Minimum 1-year rent is required as a security deposit.
►Retail offices, Hospitalities are good sources for investments.
►Loan availability is easier than residential land.
Because of its property as a nonperishable item. Gold’s return beats the index’s return in the long term. It can be stored for a long. Additionally, due to limited availability, no one regulates gold like a bank regulates money and can print it independently. Because of all these qualities, its demands never decrease. And holding it for a long time won’t diminish its value.
People who are having risk issues keeping gold safe have an option to keep it in a locker as a Fixed Deposit and earn interest on it. And there is another option for them to invest in digital gold; Which reduces the risk factor, and there is no limit to trading digital gold after KYC. Delivery options for digital gold are also available, and the maximum storage period is 5-7 years.
Mutual Funds Investments
Experts manage money invested in mutual funds. Supervised by an experienced manager and his team members, stocks and economic variables have been analyzed and update the same in the portfolio according to the changing market value, which increases the chances of the best possible returns. Whenever it is required, it can be liquidated immediately. It contains a wide variety of options. Starting from high risk, high reward(equity funds) to low risk(debt funds) are available. It is one of the most cost-effective avenues for investment. As compared to other investment options, Mutual funds provide better return options. It also helps in creating an easy and cost-effective, diversified portfolio. Because while investing in it, your money is not only invested in different industries and sectors, it also invested in following asset classes like equity and debt, etc., Which reduces the risk factor of crashing.
4.Cryptocurrency: Nowadays, more and more people are seeking the need for viable alternatives, and that’s what crypto offers. A Decentralized, secured form of banking takes governments and banks out of the equation, and even banks realized it. As per the statement of the dutch bank in Germany, They talk about how fragile traditional money is, and by 2030 over 200 million will be using digital money. The same statement was said by Jack Dorsey and Elon Musk as well. It is a solid alternative to save money for a long time. Because of its high liquidity nature, it can be converted immediately. As compared with other investment methods, crypto-currency provided the best security on the market. Its data is stored by 10s of 1000s users; it is impossible to steal, alter or erase the information of any transaction which took place. There are the lowest fees for buying, selling, and storing this. Its limited supply and can’t suffer from inflation. The market dictates its price; No involvement of government is there.
5.Fixed Deposit: It’s a Low risk, Low return investment plan wherein the applicant has to visit the bank and agree on its scheme because methods of the fixed deposit vary from bank to bank. Nowadays, not only banks but many other organizations and corporates also provide facilities of FD. When you apply for a fixed deposit, you become an investor for that bank during your fixed deposit tenure period, and the bank will use that money for their transactions during that period. In return, the bank pays you fixed returns. Fixed deposits are a one-time investment. Different banks have different fixed deposit tenures, and some of the Banks offer any time withdrawal schemes to their customers. The returns received from a fixed deposit account are always higher than returns received from a savings account. The longer the tenure, the higher the returns will be. Below are few main types of fixed deposits for investments:
1-Regular Fixed Deposit: applicant must be below 60 in age. Bank provides regular interest on it.
2-Flexi Fixed Deposit: it has a swipe facility, and it is directly linked with a savings account. Whenever savings account crossed a specific threshold, then that extra money is automatically transferred into an FD account. And whenever the savings account reaches below the threshold, that FD money is transferred back to savings. It is a source of a better interest rate.
3-TAX Saving Fixed Deposit: It provides an exemption of 1.5LHowever, as per the condition, Band applies five years of lock-in periods for this.
4: Senior Fixed Deposit: It is for people above 60 years of age, and the bank provides a 0.25%-1% extra interest rate to the account holder.
5: Shareholder’s Fixed Deposit: This facility is only provided by Non-Banking Financial Sectors (NBFC), corporates, and Housing Finance Companies (HFCs) for only those people who are shareholders of that company, and it also provides a 0.25%-1% extra interest rate.
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