There are so many investment options available in India and new investors often find themselves confused about where to invest their money. They usually find it hard to conclude upon which investment option they should land on. As investing funds involves risk it’s important that you give it a good thought before making up your mind.
As said earlier, there are various investment options available in the market and you need to be clear that not all investment options involve low risk even if they offer higher returns. One usually opt for investment as they expect to earn higher returns. Investments help you to replicate your funds. You can easily earn a profit by investing.
Often people hesitate to invest their hard earned money as investments involve risk. Investments depend on the market conditions which make them riskier. As we all know market conditions are volatile so you can never guarantee the type of returns you will get. It’s important to invest in the right place so that you don’t end up with a huge loss.
Mutual funds, gold, and shares are considered as high-risk investments whereas fixed deposits are considered low-risk investments. You need to choose correctly before concluding on your decision as you should not land up regretting in future.
Let’s studies these investments separately.
* Fixed deposit investments:
Most people prefer this investment option as this is the safer one among the three. Fixed deposit (FD) investments are not only safer but they also provide you with higher interest rates. The interest rates offered to you are higher than a savings account. So it’s always advisable that you go for investing your fund instead of saving them. While going for investing in FDs it’s important that you choose the bank correctly. As interest rates offered by banks on fixed deposit vary.
Now fixed deposits also offer you with an overdraft facility. Which helps you to withdraw up to 90% of the cash in case of a financial emergency. As well as it also gives an insurance worth INR 1 lakh on the amount that you are investing. This provides a security to your investments.
* Gold investment:
People often opt for gold investment option as they can liquidity it in future if they have any financial emergency. If you go for investing in gold you can keep it as a security and opt for a loan or liquidate it in case you need some funds. This investment can be a little risky as it depends upon the market condition. In case if you have a financial emergency when the market rate is low then you might get a low rate for your gold. It might also happen that you can get low returns than your invested amount.