As mentioned, there are diverse ways of investing and the most popular ways are fixed deposits, lands, gold investments, retirement plans, mutual funds, equities, debentures and many more. To be precise, it is not guaranteed that all investments will definitely accrue profits for us in the future. Some may decline in their value like investments in gold, equity etc.
We will list down some of the available choices are they are not arranged in any particular order.
Public Provident Funds: PPF’s are on a rise now for the benefits it offers. PPF’s are risk free and tax free. If you are planning for a long term investment, PPF would be a better choice. It comes with compounded interest which will eventually provide higher returns at a later point in time. The only limitation is that the funds are locked for certain period of time.
Investing in Land: Land investments are quite attractive for the returns it offers in short amount of time. It has mostly seen the upward trajectory. However, there are downfalls due to socio-political issues and other local constraints. It is risky and we cannot be assured of the value it may derive after some time. We should be very careful in land investments and it is recommended to invest in less dense areas to attract more profits after later years.
Equities: Equities make a good investment choice as long as we evaluate and choose the right company shares. There are times when people made 100 to 1000% profits in about 2 years or more based on the company performance. However, it is highly risky and choosing the wrong share may lose the entire amount you have invested.
Fixed Deposits: If you are planning for guaranteed income at later stages of your life. It is good to opt for long term fixed deposits which give you constant interest rate for deposit period. Fixed deposits are zero risk plans. However, we should be mindful in choosing banks.
Mutual Funds: Mutual funds provide a balanced approach to risk and returns and are usually practiced through systematic investment plans. Even mutual funds can be categorized as medium risk plans.
Investment in bonds: You may also consider investing in bonds which is better than equities and unit linked plans where you would get a standard rate of interest after the completion of the term.
Gold Investments: Now a days, many people purchase gold as a future reserve as gold has shown a rise in value overtime and it is not influenced by market conditions like inflation. ETF’s also have become dearer to people which is backed by 99.6% pure gold.
These are some of the investment choices which range from low to high risk and you may choose the appropriate one depending on your risk aversion.