5 Most Reliable Investment Options In Today’s Volatile Environment

In today’s volatile market, investors are looking for sky-high returns in a short period, that too, without risking any amount of their principal money. This is why most investors double their investment within months and leave the market once a profitable amount is received. 

Investors believe that the stock market combines low risk and high returns. However, the facts may be different. Since the market is unpredictable, there is no certainty of profit earning or keeping the amount of principal money safe. In reality, the risk and return factors go hand in hand, which means the higher the return, the higher the risk will be or vice versa. 

The uncertain and volatile market has affected investors’ faith, and they are looking for reliable investment options that lower the monetary risk and are safe in this challenging market. 

1. Direct Equity

Investing in stocks might be difficult for some people due to the volatility and no guarantee of secured returns. Moreover, it is not just difficult to pick the right stock with the right timing but exiting the market is also not easy. However, the silver lining in direct equity is that the equities have been able to produce better returns over extended periods of time than inflation-adjusted returns. 

At the same time, one can reduce other financial risk factors by diversifying across sectors and checking the market capitalisation. Also, opening a Demat account is the first step to investing in equity using quantamental approach.

2. Equity mutual funds

Equity mutual fund schemes primarily invest in equity stocks. According to the guidelines shared by SEBI (Securities and Exchange Board of India), Mutual Fund Regulations, an equity mutual fund scheme is supposed to invest a minimum of 65 per cent of its assets. These funds are either actively managed or passively managed by the investors. 

The ability of the fund manager to generate returns determines the profit in an actively traded fund. While Passively managed (ETFs) exchange-traded funds and index funds pursue the underlying index. Further, the equity schemes are divided into groups based on their market capitalisation or the industries they invest in.

3. Unlisted shares 

Unlisted shares India are known as “hidden jewels” by investors; they are securities or financial stocks that are not listed on the stock market. Since SEBI controls the stock market, all of the stocks and shares are transparent and available for investment by the general public. Pre-IPO shares typically belong to private sectors or unregistered businesses.  They may be useful tools for portfolio diversification. These unlisted shares potentially offer better revenue than listed shares. The growing potential of these shares shows investors’ interest in gaining more profit. However, it is essential to pick the right stock at the right time to get the best returns in the stock market.

Private or unlisted companies like HDFC Securities, LAVA International Ltd, AV Thomas etc., are the top companies to offer unlisted shares. Investing in them could generate higher returns when sold after 24 months. Talking about the most profitable unlisted share in the market, AV Thomas is a good company. Currently, AV Thomas share price is INR 12588 per share. If you are willing to invest, it is recommended to connect with expert share brokers to decrease any risk factors and accentuate the profit.

4. Public Provident Fund (PPF)

The Public Provident Fund (PPF) is one investment that many people use to reduce their tax burden. This is due to both the annual compounding and the tax-free annual interest. Due to the PPF’s lengthy 15-year term, annual compounding has a significant influence, especially when calculated in the later years. Furthermore, it is a secure investment because the interest collected is supported by a national guarantee.

Therefore, linking a PPF investment to a long-term objective, like retirement, safe investment etc., is very beneficial.

5. Debt mutual funds

Debt Funds are a part of Mutual Funds known to generate better returns by lending the invested money to private and government companies. Investors looking for consistent returns should consider debt mutual fund schemes. Comparing them to equities funds, they are less risky because they are less volatile. Debt mutual funds invest largely in securities that provide fixed interest, such as government securities, corporate bonds, commercial paper, treasury bills, and other money market instruments. Debt mutual funds are viewed by some as a better and safer solution for portfolio diversification.

Though these mutual funds are not entirely risk-free, they come with concerns, including credit risk and interest rate risk. Investors should therefore examine the risks associated before investing.

Above mentioned investments are linked to the financial market that helps in generating profitable returns for the assets. Investors interested in saving money for long-term goals without risking their capital could look into these options. For beginners, we advise you to seek professional help from share brokers. Stockify eases the investment process and helps aspiring investors in picking up the most profitable stock. If you are looking forward to investments – get a consultation with the experts of Stockify.

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