With time, the cost of living rising concurrently. Hence, to strive in this economical ground, it is imperative to invest. Plenty of investment options are available in today's market and every significant wealth creation investment option, irrespective of its returns, is associated with risks. It will not be wrong to say that risks and returns are both directly related. Lower the hazard, lower will be the profits, while with significant yields come high risks. And yes, we all tend to invest our hard-earned money in a scheme that yields high returns with a little risk.
Therefore, it is worth to note that, to generate exceptional returns, you need to invest in market-linked investments, instead of fixed-income products. These are basically safe investments with high returns accompanied with low risks.
Are you interested to know what they are? Here are the few investment options that actually yield high returns.
1. Equity Linked Saving Scheme (ELSS):ELSS is an open-ended Equity Mutual Fund that under Section 80C of Indian Income Tax Act qualifies for tax exemptions. The minimum investment in this equity fund is at least 80 percent of total assets and at the same time offers a lock-in period of 3 years. Such intrinsic features are often appreciated by the investors as they get enough time to exploit their values in diverse sectors. Wanna make safe and best investment with high returns? ELSS will be a good approach.
2. Direct Equity:Investing in shares or stocks, compared to mutual funds, may not be an investment option with low risks, but definitely can be an option that may generate high returns. Such an investment is directly related to either Bombay Stock Exchange (BSE) or National Stock Exchange (NSE). Interested to invest in this field? Open a demat account with a brokerage firm and start your wealth creation investing.
3. Initial Public Offering:Listing down a company's shares on any exchange is not so easy. To do so, the shares need to be initially made accessible to the public through Initial Public Offering (IPO). This is the primary market that allows public to subscribe the share capital of an organization at a certain cost. Followed by this, the company allots shares to the respected owners, as per the endorsed guidelines. Based on the ET Online story, the primary market rose as a cash spinner in 2017-18, with 65 % of the newbies dealing admirably over their costs, offering returns up to three times.
4. Equity Funds:Equity funds namely the mid-cap and small-cap schemes are vulnerable to high volatility and thereby offer high returns in the end. As indicated on the mandate of Securities and Exchange Board of India (SEBI), mid-cap schemes invest in 101st – 250th companies based on full market capitalization, whereas small-cap schemes allow you to invest in the 252st company and onwards in terms of full market capitalization. This can be an effective option for low risk high return investments.
5. Real Estate: Real estate price rates are less fickle compared to other investment options. To what extent is this true? Well, real estate price remains stagnant for an ample amount of time but then it shows spikes followed by a constancy. Therefore, investing in land or real estate is applicable for those who want to twofold their principle investing in this asset.
In which one do you like to invest? We will recommend you for a mutual fund. They are safe, simple, convenient, and most importantly you don't have to indulge your skillset or effort. The professional managers will serve you with risk-based fund recommendation and you can make and save money fast.