Investment options that give better returns without digging a hole in your pocket

It is hard to find an investor who doesn’t expect high returns with no or minimum risks in the world. Well, we all earn with one dream of becoming a multi-billionaire, ain’t you? We would like to clarify that no scheme offers high returns and low risks before we get into investment options. In simple words, risks and returns are directly proportional to each other. 

In this article, we will discuss how to make steady and low-risk returns in the modern world. We will also learn about systematic investment planning in this article. 

Direct Equity Trading:

Trading with stocks is not an easy job, but investing in the right stock can bring profits beyond your expectations. There are no guaranteed returns with direct equity trading, and the risks are high. Before starting your trade, you can play real-life equity simulation to learn the basics like when to enter and when to exit. You should also strictly adhere to the stop-loss where you can exit a trade or investment when your potential loss limit is breached. 

Equity Mutual Funds:

Undoubtedly, equity mutual funds dominate the list because of the mouth-watering benefits which it brings to all the investors. As the name suggests, equity mutual funds deal with equity instruments. One can also manage their equity mutual funds actively or passively.

A fund manager manages the active equity mutual funds, and the performance of the active mutual fund also depends on the potential of the fund manager. At the same time, ETF or Exchange Trading Funds are passively managed. Moreover, the equity funds are also categorized into domestic and international equity mutual funds. 

Debt Mutual Funds:

If you don’t want to dig a pocket hole in your, then going with debt mutual funds is one of the best ways to invest your money. Debt mutual funds are suitable for all investors who want to make a steady income with their investment. When you invest in debt mutual funds, you invest in government securities, treasury bills, and corporate bonds. Therefore, all investors need to read the risks before investing. 

Systematic Investment Planning:

Sip is a specific type of investment where the investors regularly deposit a fixed amount in mutual funds. Most of them invest in the sip deals with the equity mutual funds scheme. If you are planning to invest in the sip, you can also calculate your returns using a SIP return calculator. To calculate your return, you will have to check the mutual fund’s performance and the number of investors currently active in the scheme. Systematic investment planning is long-term; hence it is a great investment option for all the people who constantly have a monthly income.

All sorts of investments have risks; hence, selecting the ideal mutual funds depends on how you can effectively manage your risk-reward ratio.