In India, we have many types of investors – Risk-averse, Aggressive and Moderate. Generally, Risk-averse investor look for those investment schemes which can provide them secure returns on their investments. Namely, these investment options are Tax-Free Bonds, Public Provident Fund, Fixed Deposits etc. If we keep on investing in schemes like Public Provident Fund or Fixed Deposits year by year, we may be able to create good corpus within the time span of 5-7 years, but keeping the inflation in mind we may not get such lucrative returns on our secured investment schemes. The better idea of coming out of the shell of secured investment schemes is to choose those schemes which can provide inflation beating returns and balance the overall investment portfolio. Before we figure-out which investment option will be suitable for risk-averse investor to beat inflation-beating returns, let us first have a look at the current scenario of secured investments schemes -
Current Scenario of Low-Risk Investment Schemes:
For April-June’17, PPF interest rate has been locked at 7.9%, but it seems that it can marginally go down for next quarter, keeping the current inflation (which is under 4%) and RBI target band in mind. Investors generally look PPF as an alternative to Fixed Deposits, and in the scenario of falling interest rates, FD’s are offering an interest rate less than 7% p.a., where interest is fully taxable. Seeing the current scenario, it is clear somewhere we cannot depend on these schemes only to plan our financial goals of life and to create wealth. We need to have a contingency plan to give pace to our investment portfolio.
Contingency Plan to Give Wings to Your Slow-moving Investment Portfolio:
This story is from the May 2017 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 2017 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Indians are Developing Weak Bones
In India, 1 out of 8 males and 1 out of 3 females suffer from osteoporosis, making India one of the largest affected countries in the world.
"The strategy behind the Tata India Innovation Fund centers on identifying companies that are driving transformative or incremental changes through innovation"
Yes, we certainly believe innovation is a powerful theme with immense potential for the coming years, and we are excited to bring it to our investors.
What is Hybrid Mutual Fund?
Hybrid Mutual Fund is a combination of more than one type of fund. While they invest in shares of companies listed on the exchange, like equity funds.
Should you invest in dynamic bond funds?
Dynamic bond funds have delivered a category average return of 8.68 per cent over the past year, making them the fourth best-performing category, following long-duration funds, constant maturity gilt funds, and gilt funds. With interest rate cuts yet to begin, these funds remain a viable option for investors seeking to benefit from possible rate reductions.
The Multicap Solution to India's MultiDimensional Growth
India is entering a transformative era of economic growth, backed by a unique combination of demographic strength, infrastructure development, and rising global prominence.
The Long-Term Benefit of Investing in Children's Future
A child is the most treasured part of any parent's life, and naturally, we want to give them the best of what the world has to offer. This often means not only ensuring we can meet their needs but also nurturing them to pursue their unique aspirations. Each child has their own dreams and challenges, making the early years critical as they lay the foundation for a healthy and fulfilling future.
ASK THE EXPERT
Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida
How to Naturally Reverse Fatty Liver Disease
The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?
