1. 2 money making options for long term, less riskier than stocks

2 money making options for long term, less riskier than stocks

Planning better options for multiplying money is one of the most sought after thing which everyone thinks of, be it an enterprise or an individual. We bring to you 2 money making options which are less riskier than stock market investment.

By: | Published: December 17, 2017 9:00 AM
Photo for representational purposes only. (Image: Reuters)

Planning better options for multiplying money is one of the most sought after thing which everyone thinks of, be it an enterprise or an individual. It is often advised by experts that the prime concern should not only focused towards growing the money but one should also incorporate ways to safeguard it simultaneously. Investing in stock markets — specifically into stocks — has been on top of the mind if an individual plans to shift money making practice other than the traditional banking deposits. But abnormal returns do come at increased risk only. As stock markets contain a number of risks along with its multifold benefits therefore one may consider other wealth multiplying practices which are relatively less riskier than stocks. We bring to you 2 money making options which are less risky and don’t need much active participation unless stock market investment.

Mutual Funds

Over the last couple of years Mutual Fund investments have been picking up steam. With the continuous efforts of the Indian capital market regulator SEBI (Securities and Exchange Board of India) and AMFI (Association of Mutual Funds in India), awareness among retail investors have risen up to an unmatched level. Earlier in August this year, Equity Mutual Funds registered a record inflow of Rs 20,362 crore on the back of strong participation from retail investors. A mutual fund is nothing but a well diversified portfolio of different assets which results in turn minimises the risk of a mutual fund unit.

Nowadays there are plenty of mutual fund houses which are offering various schemes according to different risk appetites and selection of assets. Moreover, mutual fund investment doesn’t require a regular check or an active market watch by individual investor unlike stock market investments. Mutual funds being managed by professionals are considered less riskier than stocks and offer decent returns if invested for long term.

Bonds

Do you heard investing in bonds? Many people often take stock market as investment in stocks only but debt securities are a phenomenal part of it through which corporates raise more money than in primary markets — traditional practices of IPO (initial public offerings). Bonds are much like as fixed deposits in banks, major difference is that FD’s are backed by the banks whereas bonds are generally issued by companies or governments. Almost all bonds are considered as risk free, depending on the credit rating of companies or issuing organisations. Interestingly, there are some bonds which have an annual interest rate as high as 12% and few of them are tax free too.

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