Safe Investment Options in India but How safe are these options!
Majority people are drawn by the attractive schemes of different investment companies. More than 50 % of such people face problems of dissatisfaction from such schemes because the company may not be trustworthy. So, intelligent people tend to invest in safe investments. Let us consider the safe and unsafe side of the different investment options in India.
The safest investment is considered as investment in fixed deposits with bank. It provides 100 % Safety if it is with a trustworthy bank. This is because the banks are regulated by the Reserve Bank of India. It provides return on regular basis. It also helps to save tax. But if we see other side of the coin, it carries the following risks:
– People may have to deposit at very lower rate.
– As the interest on FD is based on the inflation effect, rate of return may decrease with increasing rate of inflation.
Indian people are more traditional and give the next priority to gold. They can help to earn a lot of money by fate but the return is never fixed neither safe. The unsafe side of such investment is:
– Gold is not a useful material it is only a tentative object on which people invest to make saving.
– The price of gold are never stable they can get to earth at any time.
– If the price of gold in which we invest does not increase, we will also lose the opportunity return that we may have earned from other investment options.
Real estate has also emerged as an investment option but it has same safe and unsafe side as that of gold. It can never be decided when the value of a plot of land, house or office will increase or decrease and the worst thing is the intensity of fluctuation is never known.
The other better options of investments as per public reviews are Government Bonds and Public provident fund. They are very safe but may seem to be unsafe when in a case we have to face liquidity issues and can’t withdraw any pie from such investments.
Mutual Funds are the next prioritized investments. They tend to be very safe. IT is said that mutual funds are transparent in nature but it is never so. Let us have a look at its cons:
– Mutual Funds attract a lot of charges in aggregate as all the transactions are carried out by levying loading charges.
– It may drag you to the high tax bracket even if the actual income of your does not tend to be in that bracket.
sp;– You will not be able to invest in the securities you find better as you give the safety of your investments in the hands of the fund managers of the mutual fund companies.
We all are very well aware about investment in the equity market. In this people invest their money in the stocks traded at stock exchange or in any private way. People try to earn maximum return on such investment and in many cases the return are satisfactory. They never know how the company will perform or what will be the result of such investment; even in many cases people may not know the promoters of the company they are investing their find in. Such investment is full of risks. Market fluctuation is the most common risk. In many cases the value of share goes to 0.
There are many other options of investments but none of them are 100% secure. This is because the investment companies also want to earn very high profits. This will hinder the safety of the investors.