Most people want to Invest to get a high return in less time without any loss. Investing adds value to the existing assets over some time. You spend a lot of money, time, and effort in investing. The purpose of investing is to get a high return than the principal value. There are so many ways to invest. Investment plans always involve risk but also higher returns can be expected in the future depending on the type of investment. Investment risk can be low, medium, or high. Without any risks, no investment exists. Here are some types of investment:
1. Stocks
Stocks refer to the equity that represents ownership of a particular entity. It is a long-term investment. Stocks are owned by different companies. The stock market is not always stable. It is also challenging to choose the right stock for investment. As the stock price can rise and fall anytime. Therefore, you can not avoid a capital loss here.
2. Crypto
Crypto is either known as cryptocurrency. It is a digital and virtual currency that uses cryptography techniques to give high security to online transactions like transferring, buying, and selling. It uses a decentralized system and a blockchain network. There are different types of cryptocurrency available. Crypto assets are too much risky but also very profitable.
3. Real Estate
Real estate is a top-rated investment plan. It involves buying properties like flats, apartments, or land. You can rent your property and get a monthly return. In real estate, the most important factor is location. If the property is in good condition, then in the future, the selling price could be much higher. That is why choosing the right property to buy is very important to profit you in the future.
4. Mutual Funds
Before investing in mutual funds, one should always calculate the market risk. Many investors in a mutual fund put their money together in securities. A fund manager manages the mutual funds. There are different types of mutual funds available. It is a liquid investment. One can withdraw their money from a mutual fund at any time. One should follow the mutual fund performance for a better return.
5. Fixed Deposit
FD or fixed deposit is an investment instrument offered by banks. There are many FD schemes. It is safe for people who don’t want to risk in any investment plan because an FD always guarantees returns. There is no market-related risk in fixed deposits. It provides higher interest rates for senior citizens.
6. NPS
NPS is known as the “national pension system”. It is regulated by the pension fund regulatory and development authority (PFRADA) and backed by the government. This scheme is helpful in retirement. There are two types of NPS accounts offered, i.e., tier-1 and tier-2. Here the returns depend upon the time that you choose to invest.
7. PPF
It is called Public Provident Fund. It is safe for a long-term goal. It includes several benefits like tax efficiency, liquidity, and investment period.
8. Gold
It is common in India to buy gold to multiply wealth in a family. Gold exchange-traded funds (ETFs) are popular now. Gold investment protects you against inflation. It is easy to buy and sell gold. You can trade gold globally. ETFs are suitable for beginners as you can buy even a tiny amount of gold, as small as one gram of gold.
9. SCSS
The senior citizen’s savings scheme (SCSS) provides stable returns to senior citizens aged 60. They must be retiring or already retired person. Bank and post office are two ways to open an SCSS account. Post-retirement, you can get a regular income through this scheme.
10. ULIP
It is known as a unit-linked insurance plan. You can choose any life ULIP plan that will help you o invest in various funds. It also includes a life cover in that plan which protects you financially. So the premium amount is used in two ways, one part for investment and the other part for buying life cover insurance.
