Low risk investments with high returns have gained popularity with the unstable economic situation in the markets. As the name suggests, they offer you good returns without putting your capital at risk.
The uncertain nature of the global stock markets have forced investors looking for guaranteed returns, to look for low risk, high return investments. Though, there are many such options available in the market, many people are actually unaware of them and they end up investing in high risk assets.
In order to proceed with such options, you can always consult a financial planner, as they are more experienced. The options mentioned here will help you put your money in the right place.
If you are looking for safe investments with high returns, then real estate can be your preferred option. It would be among the options that have a low risk factor with high returns, because of the steep correction in property prices due to the economic downturn.
At most places, even in prime locations, you can get residential properties at low rates compared to 2008 peaks, though the situation could have changed a bit. As job market gets stable, there will be a rise in the demand, reflected in the prices.
Mutual funds have gained a lot of popularity in the market in the last few years. Stock market investing can be difficult and risky because of the market fluctuations, and hence investing in the form of mutual funds can be a good idea. You can invest in diversified mutual funds, which reduce your risk of capital loss to a great extent.
Bank Saving Schemes
Bank saving schemes can be a good option considering their history of providing safe and secure returns, regardless of the market conditions. Several banks have launched savings schemes, which offer attractive interests on the deposits made, depending on the period of investment. More the investment horizon, more would be the returns.
If you are looking for long-term investments, then investing in bonds of large corporations can be considered. Bond holders are people, who actually advance loans to corporate companies to fulfill their cash needs for fast and successful expansion.
When you buy bonds, you get fixed returns from the company, irrespective of whether it makes profit or loss. Thus, this is indeed a tool of investor protection. Ideally, bonds of government companies and private firms of repute are ideal for this purpose.
Gold is also a favorable option. You can invest in the electronic form, which reduces the risk of holding it physically. Gold, over years, has emerged as the safest choice, with many people exiting the stock market to enter into gold investments for surety of returns.
Disclaimer: This is just for reference purposes and does not recommend any investments.