The only possible way to fight inflation is to invest your money in the best way possible to earn the maximum return on it. Investment provides you with the option to secure your financial future as well as fulfil your goals and objectives. Instead of making your money sit in your bank account and earn the minimalist interest possible, it is beneficial to invest your money in various ways possible to earn the highest return. Moreover, the type of investment also depends on your risk tolerance capacity. By taking a higher amount of risk you can generate higher returns on your investments and vice versa. Similarly, by taking risks on your investment you may be able to fulfil your financial goals much quickly when compared to investment plans that have a low risk factor.
In the manner that you receive interest on your savings account or like the MIS Interest Rate, you can earn a safe return on your investment. But if you wish to invest in a risky option like the stock market, you can either earn high returns or you can even lose your investment. However, it is advisable to explore all the best possible investment options before investing your money.
Available Investment Options
Generally, there are a lot of investment options available in the market, but you need to make sure that you have all the appropriate information regarding that option before investing your money into it. The list of the best available investment options in India are as follows:
If you have a high risk tolerance and are okay with the fact of losing your investment amount, then you can invest in the stock market. Since there is a high risk factor involved, the returns on your investment can also be huge if you invest with the correct set of knowledge.
On the other hand, if you have a low risk appetite then you can invest in a fixed deposit. Just as its name suggests the returns on this investment are fixed which makes it a low risk investment. However, the rate of return on your investment in this option would be much lower as compared to other investment options.
If you have a huge sum of money to invest then you can choose to invest in real estate. The sum required to invest in this type of option is generally very high but the returns on your investment are usually also very high.
If you do not wish to take risk at all and do not want to invest your money in the market, then you can just let it sit in the savings bank account and earn interest. The Bank interest rates on saving account might be very less but there is absolutely no risk involved in your investment. Therefore, you can earn interest on your money without investing it in the market, just by simply depositing it in your savings bank account.
The above are some of the investment options available in India where you can invest your money on the basis of your risk tolerance capacity. However, it is advisable to get the proper knowledge of your investment before investing your money.