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3 Safe Investment Avenues With High Returns

The return on investments is usually directly related to the risk involved in it. So, if you want higher returns, normally you have to take a higher risk as well. However, there are a few safe investment avenues that have the potential to offer high returns and they can be very attractive to senior investors, too

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Amit Sethi
January 5, 2024
Safe Investment With High Returns

Safe Investment With High Returns

‘High return’ is a relative term. For instance, a return of 10 percent can be called low for a young person who needs a return of 15 percent on his/her investment to accomplish a financial goal. At the same time, it can be seen as a high return for a retiree who doesn’t want to take a risk and is just looking to beat inflation. Hence they are always in search of Safe Investment With High Returns options.

Here we are going to focus on safe investment avenues for seniors who want to get a higher return to beat inflation and grow their wealth after retirement. So, let’s find out some of the safe investment avenues available in the market that have the potential to offer you a high return.

Safe Investment Options In Equities For A High Return

Usually, investment in equity instruments is considered a high-risk category. However, you can practice strategies, such as diversification and systematic investment plans (SIPs) to significantly reduce the risk. You may invest in large-cap mutual funds and index funds using the SIP option. You can also invest in arbitrage funds to get an attractive return at a low risk. Instead of investing your entire corpus, you can allocate a small portion of it in equity instruments. For instance, you can invest up to 10 percent of your corpus in equities.

High-Return Options In Hybrid Fund

A hybrid fund consists of investment allocation to both debt and equity asset classes. It maintains a balanced approach to risk and return. Thus, you can get a safe return even in a volatile market. As hybrid funds are a little riskier than debt funds, you may invest a bigger portion of your corpus in it compared to equity-oriented mutual funds.

Some Alternative Investment Options For A Safe But High Return

In alternative investment options, you can choose investment instruments such as sovereign gold bonds (SGBs), real estate investment trusts (REITs), fractional ownership in realty, and so on. Avoid a big exposure in a single investment as you could find issues such as low liquidity and lock-in requirements.

Things To Keep In Mind

Instead of choosing one product out of an equity fund, a hybrid fund, or an alternative investment option, you should try to distribute the investment across them for diversification and further lowering the risk. You can also invest in regular investment products, such as high-interest fixed deposits (FDs), high-interest savings accounts, senior citizens savings scheme (SCSS), and Public Provident Fund (PPF), among others to get an attractive return on your money.

 

The author is an Independent Financial Journalist

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