Investment Options: Understanding Your Risk and Returns

It is every investor’s wish to put their money where there is maximum return on investment (ROI).  However, with globalization and fragility of today’s economy, people are now more worried about their investment risk than their returns -most people will opt for low risk, low returns investments. Despite this fear, there are still others who believe in risk taking while prospecting huge returns.

There are numerous investment options to put your money. Therefore it is necessary to understand these options, their returns as well as the risk associated with each of them. Decide which ventures to get into depending on your risk appetite. While investing, however, you must develop an investment plan and stick to it.

The type of investment will depend on your need and time horizon. If you plan to invest for retirement, you will find different retirement plans to suit your needs. If you desire to invest for other life events like child education, buying a luxury car or a house, there are different methods for you.

If you wish to know where to invest your hard -earned cash or the various investment and saving options available, then here is the right place for you.  In this blog, we will explore the various investment options and products available, the returns as well as risk associated with each of them. To invest your money, you ought to first understand your needs and explore your risk acceptance before deciding on which investment is suitable for you. One thing you should do as an investor is to diversify your portfolio. Below is a list of major investment options grouped according to their risk.

Safe Investments

•  Fixed deposits
• Savings account
• Public Provident funds (PPF)
• Government Bonds
•   Post office schemes (KVP, NSC and MIS)

Moderate-Risk Investments

•  Property / Real estate
• Gold
• Company deposits
•  ULIPs
•  Mutual funds
• Annuities
• IRA

High Risk Investments:

• Forex trading
• Trading in stocks