The best investment options with least RISK

Everyone wants to invest money in some form or the other to get some returns. But with every investment there is an associated risk, which usually fears people from investing. The higher the risk the greater the return, this is a general phenomenon associated with investment. But what if there exists an option, which offers good returns with limited risks? Well, there are many such options, known as investment alternatives.

Investment alternatives are investment plans that give the profit of wealth accumulation along with the benefit of market returns. The best investment options can be shortlisted based on the investor and their investment aims. An investment planner assists the investor to accomplish their long term as well as short term investment aims. They are an ideal option for investors who want to gain wealth and accomplish the mission of saving taxes.

• Unit linked insurance plan: - Unit-linked insurance schemes are considered as one of the best investment alternatives in India. The ULIP plan offers a dual profit of insurance and investment. Moreover, ULIP plans also offers the profit of tax exemption. ULIP plans come with a lock-in period in 3 years-5 years.  

• Public Provident fund: - It is one of the safest and most secure long-term investment alternatives amongst all the best investment alternatives in India. It is tax-free. A PPF account can be opened in a bank or post office.

• Mutual fund investment: - One of the most lucrative investment alternatives in India – mutual funds is the best investment scheme offering higher returns on investment over a long period. It is a market-linked investment option that invests money in different financial instruments such as equity, debt, stocks, money market fund, etc. It offers much better returns as compared to other best investment alternatives in the market.

• Bank fixed deposits: -FD or fixed deposit is a very popular fixed-income investment alternative. As per the name, Fixed Deposit offers fixed returns over the investment tenure. The returns are payable monthly, quarterly or yearly, as per the bank regulations. The interest rate is attractive, ranging from 6.50 % to over 7% for the tenure of 1 year.

• National Pension Scheme: - Being one of the best government-backed investment alternatives, the national pension scheme gives pension solutions. The funds are invested in equity, bonds, government securities, and investment options as per the investor preference. As per the scheme, the accumulated interest is tax-free. If one opts for the lump-sum payment upon maturity, 40% of the maturity proceeds are tax exempt. If one chooses to receive a pension after maturity, the amount is taxable as a frequent income.

• Senior citizen savings scheme: - Senior citizen savings scheme is one of the free tax saving investment options in India for senior citizens because offers them a regular income. The scheme offers a whopping rate of interest i.e. 8.6% interest per annual, which makes it a highly attractive investment option.

• Direct Equity Funds: - Direct equity fund is considered as one of the best investment alternatives for a long-term period. Even though most of the investors take direct equity as a high-risk investment alternative, the returns offered by direct equity funds are higher than any other investment alternatives available in the market.

• Real estate investment: - One of the rapidly developing sectors in India is real estate, holding huge prospects in wide sectors like housing, commercial, hospitality, producing, retail and more. Purchasing a flat or plot is the best decision amongst the investment options available in India. The risk is very low because of the rate of the property increase within 6 months.

• Gold: - Gold is one of the traditional, evergreen, and one of the best investment alternatives in India. It is because of the value of gold increases quickly. If anyone is looking for gold investment alternatives, they can simply choose for gold deposit plan, gold ETF, Gold bar, Gold mutual fund, etc., gold investment can profit in a short period.

As we all know, with investment your capital is at risk. It is better to know your risk appetite before investing in any investment plan. An investment without a risk profile analysis mostly ends up in financial crisis. The combination of your risk profile analysis and your investment goal gives you the perfect idea about the type of investment you should make. You can also opt for the services of a certified investment advisor if you are confused. It is necessary to get the basic knowledge about any sort of investment before investing.

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