Risk and return are entirely connected, and every investor desires a high rate of return on their assets. On the other hand, stocks are highly volatile and dangerous assets that may cause investors with a low-risk profile to live a hectic life. According to Consumer Spending Outlook Research 2022, 31 percent of Indian investors might prefer mutual funds over equities. If you’re a risk-averse investor who doesn’t want to worry about market fluctuations, this is your investment guide.
Here are some secure investments to help you build a solid financial strategy and ensure your future.
- Corporate Fixed Deposits
FDs are one of the safest financial assets, and their creditworthiness has been rated by many rating organizations such as CRISIL, CARE, and ICRA, among others. Corporate Fixed Deposits (FDs) have several benefits, including guaranteed returns, a flexible tenor, and the ability to deposit early. These FDs are suitable for investors seeking fixed yields with capital protection.
Corporate FDs with renowned non-banking financial corporations (NBFCs) and HFCs (Housing Finance Companies) is the answer for risk-averse investors concerned about decreasing FD interest rates. In comparison to bank FDs, NBFCs provide higher rates. The Reserve Bank of India has severe restrictions that NBFCs selling FDs must follow (RBI). As a result, investors consider Fixed Deposits to be safe.
- Bonds
Bonds have several perks, including lower risk and diversification and the ability to earn income when needed. Bonds may be a good fit for your long-term portfolio, depending on your needs and goals. Bonds, for starters, help investors diversify their holdings while also protecting them from market fluctuations. Bonds may perform well when other assets, such as stocks and real estate, provide a long-term safety net. This is why individuals are becoming more interested in bond investing.
- Public Provident Fund
The Post Office and authorized nationalized private banks offer the Public Provident Fund (PPF). Individual Indian citizens – no Hindu Undivided Families (HUFs) or Non-resident Indians (NRIs) – can invest in PPF accounts. PPF accounts have a 15-year lock-in period. The scheme can be extended in 5-year. Between the third and fifth years of investment, investors can ask for a loan against their PPF investments.
- Debt Mutual Funds
Fixed-income financial securities are the subject of debt funds. When compared to equity funds, it is considered safer because debt funds have no equity allocation. The risk associated with debt funds is determined by the type of fund and interest rate variations. When interest rates are falling, long-term debt funds may give better returns. When interest rates rise, short-term debt funds provide better returns. Consider investing in mutual funds with a better credit rating.
Conclusion:
SMEST is one the most reliable bond trading platform India that brings up-to-date information regarding various bonds. SMEST is the best choice for investing in bonds because of its streamlined interface, fail-safe communication, and step-by-step guide. For any guidance regarding the best bonds to buy in India, visit https://smest.in/.
