Investment for novice investors is all about looking for the ‘perfect’ option, where there’s maximum return to minimum risk. Risk, being the operative word here, is the only factor that needs mitigation according to them. However, we at MAXX Markets would suggest that there’s no such investment option that comes without any risk. There’s always risk attached, whether high or low. Investing in something just so that there’s high returns could also cause losing the money that has been invested.
It is important therefore to choose an avenue for investment that matches the investor/consumer’s risk profile along with the risks of the product. In this scheme of things, the royal metal Gold is considered a huge investment option. It can be bought in various forms – physical, paper or digital but it also offers two different schools of thought when considered for investing. One side firmly believes that the material is only used in jewelry now and no longer has the monetary benefits. On the other hand, gold is considered an asset that is necessary for investors in their portfolios.
Other than gold, you can also plan your investment portfolio using cryptocurrencies, so check out some of the reliable sites which are available online like, B-Finance.
While the debates go on, MAXX Markets advises to consider other options that come with less uncertainty and stability than gold. Here are a few alternative investment portfolios:
- Stocks and Mutual Funds: Stocks can be deemed risky because of the volatility attached and low guarantee of returns. However, compared to all other asset classes, stocks deliver higher than inflation-adjusted returns over long periods. Mutual Funds, similar to stocks, come with an open ended tenure.
Both the options above have a lot of guidance and information available which make them more approachable.
- Public Provident Fund: PPF is the most popular investment option in India for its sovereign guarantee. It offers a lock-in period of 15 years which makes it long term, tax benefits under section 80C and once matured, the account can be extended any number of times in blocks of 5 years. A thorough investment plan that requires minimum intervention.
- Real Estate: Every piece of property can or should be used as investment. What starts out as an investment will grow and fetch many dividends. Capital appreciation is the first of the two benefits real estate offers. The second benefit is the rental option that comes along.
- Equity Crowdfunding: Start-up companies that require money and resources to take off attract investors. Investments that are made to buy shares of the company help to own part of it and if the enterprise does well, it also fetches rewards in return.
Adding to this, these investments allow one to get involved in the thought process of a company. Companies require a steady stream of input and being invested in the company is a good to source thought.
- Fixed Deposit (FD): Another good investment agency is the Fixed Deposit or FD. Under the DICGC (Deposit insurance and Credit Guarantee Corporation), every depositor in a bank is insured up to Rs. 1 lakh (maximum) for both principal and interest amount. MAXX Markets feels that not only is this safe and with the amount of access to these avenues, the investment type is also easy
These are some of the avenues that act as alternatives to gold. Since the metal has polarized views as far as investing is concerned, there is no harm in choosing something safer and reliable.