4 Investments with High Returns
There have always been good investing options since the economy has been in existence. It only took time for people to realize more opportunities around them than the current ones. After simple trade or lending money, the trend changed with real estate or buying property. Later, a shift happened with the opportunities in stock market.
These days, newer markets are opening for different financial services. However, a key point to note before investing is to consider all the available options. One must consider all the pros and cons regarding investments and invest in the areas that are stable and provide guaranteed or higher returns. Out of all the investment opportunities available today, these four tried-and-tested options remain to be stable form of investments:
1. Real Estate
Real estate is considered among the few safe options for long-term investments. Buying a property and later selling it off for a higher price when needed is relatively less complex, compared to other investment options. If not at a higher price, the property owner can still expect to get back his investment amount. Besides that, one could also rent property to tenants and generate income.
Some people may want to avoid the stress of becoming a property owner and give their money, along with other investors to a third party to buy properties for possibly sharing the returns. However, while buying individually, one should consider the location of the property. It is best to approach a real estate dealer or an expert for consultation, before buying a property.
Issued by the RBI, the 8% Government of India (taxable bonds), carry sovereign guarantee. The lock-in period is six years and the rate of interest is 8% as the name suggests. You can pay at half-yearly intervals on non-cumulative bonds. The interest on cumulative bonds, compounded with half-yearly rests, is payable on maturity, along with the principal amount. Hence, the cumulative value of Rs 1,000 at the end of six years will be Rs 1,601. They can be purchased from banks and are even available for purchase online.
3. Stock Market
Stock markets are a good place to get higher returns, as any financial planner would suggest. However, one must not invest all his savings and extra cent, just because the market is booming at some point. Stock brokers or regular investors shall give you different or thousand ways to invest in stock market.
However, a few basics to keep in mind while using any strategy would include to have a fixed source of income, along with allocating your money into different stock options rather than all in one high performing company.
Keeping aside investments in some good stock options for a long period of time would also work. This way, the investor would not have to worry about market fluctuations all the time. However, one should start small and seek professional advice before committing full-time.
4. Fixed Deposits
Last but not the least; Fixed Deposits are a favourite among families and salaried individuals for its guaranteed returns. A fixed deposit is a long-term investment depending upon the needs of the investor. A bank offers up to Rs. 1 lakh of insurance on investment. The rate of interest could differ. To get even higher returns, one could invest in corporate fixed deposits. FDs like Bajaj Finance requires minimum Rs. 25,000 deposit and offers up to 8.40% return on investment.
Senior citizens are eligible for additional rate of interest that goes up to 0.35%. You can also calculate interest before investment on by using an FD Calculator. Apart from the options mentioned above, an investor should always keep investing to maximise funds and keep updated with the current trends for making the most out of investment options.