which is the safest investment

D

dimpy.handa

Dimpy Handa
During these uncertain economic times, it is not unusual for friends to ask where is the safest place for them to put their money, meaning a place where they at least won't loose what they put in.

That question always stumps me.

Traditional safe havens, t-bills, bank CDs, and cash, almost always fail to keep up with inflation, but their nominal return is easilly predictable. Is safety the equivalent of predictability even when a loss in real terms is inevitable?

What about traditional inflations hedeges - gold, real estate, inflation adjusted bonds - does the volitility of one and interest rate sensitivity of the other negate the safe haven qualities of these types of investments?

What about a more aggressive approach? Does the more enterprising investor who looks for value or growth in equities and securities actually accomplish what the defensive investor actually seeks, wealth preservation with the possibility of real gains?

Is a more aggressive investing strategy the key to safe investing?
 
Before choosing an investment option you have to get your priorities correct. If you want more returns then you have take that risk.So,ppl looking for great returns invest their money in Stocks,Equities etc.People who are conserned about their capital invest in Banks interms of FD,savings account etc.Though investment gives only medium returns the capital is safe.

So making an investment decision is purely based on the individual needs and priorities.

-Deepak.
 
As an invetsment decision is taken it is extremely essential to understand and analyze the Objective and Expected Return from a Particular Invetsment and the risk appetitte of the investor.

For a person looking at long term security with very low risk and consolidation as an objetcive invetsment in Gold or Real Estate might be a good option.

At the same time a perosn with a low risk appetite and a short term objective in mind a Fixed Deposit or Government Bonds may be a good option.

LIfe Insurance - PPf are other options if tax saving is the objective.

Equity Markets and Mutual Funds are best invetsment options for people with moderate to high risk appetite.
 
dimpy.handa said:
During these uncertain economic times, it is not unusual for friends to ask where is the safest place for them to put their money, meaning a place where they at least won't loose what they put in.

That question always stumps me.

Traditional safe havens, t-bills, bank CDs, and cash, almost always fail to keep up with inflation, but their nominal return is easilly predictable. Is safety the equivalent of predictability even when a loss in real terms is inevitable?

What about traditional inflations hedeges - gold, real estate, inflation adjusted bonds - does the volitility of one and interest rate sensitivity of the other negate the safe haven qualities of these types of investments?

What about a more aggressive approach? Does the more enterprising investor who looks for value or growth in equities and securities actually accomplish what the defensive investor actually seeks, wealth preservation with the possibility of real gains?

Is a more aggressive investing strategy the key to safe investing?
Click to expand...
 
silver and gold is the safest apart from fixed deposits
Silver prices are expected to go as much as 2 lacs a kg
Fd with interests rates of 10 - 12% per annum is the best
If u have good knowledge and risk taking capacity stock market is the best
 
AS PER MY CONCERN THE BEST INVESTMENT IS GOLD.....

ON THE OTHER HAND THE INVESTING IN MUTUAL FUND IN SIP(SYSTEMATIC INVESTMENT PLAN) IS THE MOST EASY AND I THINK SAFEST PLAN....
 
The best bet has and will always be equity markets. The myth that it is for persons having huge risk appetite..is not correct. I advocate and ...that is the only way a person can earn handsome and best returns in equity market is DISCIPLINE. Yes this is the and the only quality that will ensure your success. Want to know more about how to use this trait in practicality, please message to me
 
most of the time investments based on the time.
whether it is for short time (<1year) or long term (>1year).

if you go for safest investments

t-bills,national saving certificates are the safest investments. but most of the time it can not beat the inflation rates.

for the better investments if u look for time period more than 2 yrs it is
balanced mutual funds are the safest bets.
which beats the inflation and gives reasonable returns greater than any safest instrument.

but it is little risky depends on the market situations.
 
Given the upward volatility and renewed international interest in gold and silver i do not consider it to be safe investment. The Logic derives from the fact that these commodity are non value adding to economy as they are nonproductive. At best they can be hedge against inflation.
I would say a portfolio of FD, mutual fund, House would be a safe investment
 
You must log in or register to reply here.
Back
Top