3 Low-Risk Investments You Can Make to Grow Your Capital Slowly and Steadily
If you’re looking to get into investing but are worried about losing your capital, this article might be for you. We’re going to look at 5 lower risk investments that could see your funds grow at a steady rate. If you’re looking for get-rich-quick investments, then this article might not be for you. But if you’re looking for some stable ideas like fixed deposits and pensions, keep reading.
Remember, the higher the potential upside of your investment is, the bigger the risk often is. So if you’re looking for a low risk place to put your money, you’ll have to be ok with a reasonably steady return. You aren’t going to double your money in a couple of years with these strategies, but you could see your principle grow at a good rate while not being in much risk of reducing. So what options do you have if you want a steady and safe return?
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Property
While property isn’t necessarily the most risk-free investment strategy, there’s a reason why it has remained one of the most popular for decades. You get two ways to see your investment grow. If you rent out your property, you could see a 4-9% yield depending on the area. Or more in some places. But that’s not all, the property should hopefully grow in value too (most have over the last few decades). That gives you more ways for your investment to grow. And since you’ll actually own a property, it’s more secure than many financial instruments you won’t actually have your hands on.
While the property market has seen some ups and downs in the last few years, it’s generally considered still a safe place to put your money that should provide you with good growth and returns. Just do your research to find the right place to invest in, somewhere that has both good rental yields and good potential property value growth.
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National Pension
The Indian NPS, or National Pension System, is a long-term investment that has remained popular. This is a secure place to put your money and is made up as a mix of equity, fixed deposits, government funds, corporate bonds and others. It has a very low minimum deposit amount and you can choose what sort of risk level you’re happy with. You can also set how long you want your money to be tied up for. For a 5 year investment you could get up to 11 percent depending on the specifics.
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Fixed bank deposit
Relying on bank interest is another popular way of investing in India. While you might not get quite as much in interest as if you tied your money up in a long-term fund, you will have the flexibility of having access to your money if you need it. These bank deposits are also backed by deposit insurance, protecting your money completely up to a limit. If you’re looking for a really safe place to keep your money with modest returns, this could be it. Use fd calculator to see how much you could save.
