Risk Free Investment and Guaranteed Returns

Risk Free Investment and Guaranteed Returns are the words we like the most to hear when investing in any types of Investment available to us.

Risk Free Investment and Guaranteed Returns has given the world lakhs of millionaires but compared to the sheer amount of capital that changes hands every day the number is nominal. The stock market comes with its risks, not to mention it is a steep climb for beginners to master all the aspects of the stock market.

In India, there is a general stigma against investing in stocks. Stocks or shares are treated like schemes by companies to extract money. They feel like if they invest money in shares they will never make it back. Most of us prefer investing in real estate, or gold, things that will guarantee solid returns in the future and serve as a cushion in a financial crisis.

Risk-free investments are the accepted norm in Indian economy. Investors look to steer clear of the market risks, and mental pressure of stocks. Every investment has its pros and cons and you cannot gain without making sacrifices.

However, if you fall among the majority of Indians, here are some risk-free investments you should definitely try.

Life insurance.

One of the most popular forms of investment in the country, the Life Insurance is a guaranteed protection against financial crisis that comes along with the premature death of a family member. The insurer nominates a beneficiary who receives the proceeding funds to help through the loss. The money is paid by the insurer company in response to the payments made by the deceased.

The aim of a life insurance company is to provide a certain amount of security for your family after your demise. It is advised that you take a closer look at the plan you wish to take in. What standards would you like to have for your family? For example, what about the funeral costs and medical bills and other added costs?

The life insurance can be divided into three main components, the death benefit,  timely premium payment by the customer, and in case of a cycle completion, a cash value amount.

Fixed Deposit account.

A fixed deposit account is perhaps the safest investment available. A bank deposit is a money placed in a bank for its safe keep. A fixed deposit account requires the account holder to deposit a certain amount of money in his account for a period of time. He cannot withdraw the money until a certain time period or when the account reaches maturity.

A bank provides a much higher rate of interest for a fixed deposit account compared to other savings accounts and guarantees better returns in the future.

Bank Recurring Deposit.

The recurring deposit is special kind of term deposit available in India. The account holder deposits a fixed amount of money every month and earns interests similar to rates of fixed deposit accounts. A lot similar to making fixed deposits of a certain amount. The deposits in a recurring deposit account mature at a fixed date along with all the deposits you made every month.

Recurring deposit accounts are extremely helpful for salaried employees with a fixed income every month. They can deposit a part of their salary every month and get paid after a certain period of time which can be, a minimum of 6 months and maximum of 10 years.

Investing in yourself.

The biggest investment you can make is to invest time and money in yourself. No one has seen the future and anything can happen tomorrow. It’s always better to be in a cushion that can at least withstand a bit of damage if it comes down to it. Mediclaim and provident funds are amazing schemes that shield you through tough times.

Mediclaim

A mediclaim policy is a type of health insurance policy that is developed to take care of one’s health expenses until a certain amount. If a person faces any sort of medical emergency in the future, he can make a claim to the bank or hospital and get some concession or fund coverage.

A mediclaim policy is almost unique to India and issued for a defined time period. As the renewal date approaches the beneficiary must pay a certain amount to keep enjoying the services.

Provident Funds

A Provident fund is a government scheme compulsory to all the salaried workers in a company. The workers in the company contribute a part of their salary to the fund and the employers contribute a sum to the fund on behalf of their workers. This total fund then goes to the retired employees as a retirement bonus.

Provident fund schemers differ country to country but the basic goal involves providing a stable retirement for employees.

Investing in Gold.

One of the more popular forms of investment. During a crisis, investors buy gold and wait for the market to stabilize to sell the gold at a huger price and make huge profits. Gold investment is straightforward and easy to asses. However, investing in gold requires considerable capital and looking into stock market all the time.

Government schemes.

No company can guarantee savings and safe keep your money better than the government. Government schemes have safeguarded the general public and promoted their welfare for the longest time, investments as low as the jan dhan yojana, Kisan bikas have helped increase awareness and guard poor against losses. Look into the government scheme that fits your needs and consults an expert before investing in them.

The Indian post offices are an amazing organization as well. Though the interest rates might be lower in some cases. They are more trusted than banks by millions who have opted for the post office with their life savings.

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