Where to Invest to Get More Returns Than Fixed Deposit

13-01-2017 | Mohan Payare |

Where to Invest to Get More Returns Than Fixed DepositWaking up every day, getting ready, rushing for office is the mundane daily routine for millions across the world just for the sake of earning enough to enjoy life and lead a good life.

Investments and saving money are the traditional ways which has been passed down from generation after generation.

But with the world swirling around with modern thoughts, innovations, lifestyle changes, investment and saving plans have become more diversified with equally higher returns and risks.

But with sound knowledge and wise consultation and experience, one can churn out a lot more money than what traditional money making instruments offer.

Let’s explore five best investment plans which will give an extra boost to your finances if handled with caution.

Mutual Funds

Mutual funds are managed professionally where investment firms pool in capital from multiple investors and distribute the amount in several sectors.

The money pooled in is then channelized in investing in financial assets.

It is an open ended investment plan and offers high dividends and interests.

One major advantage of mutual funds is that the money is professionally managed and has high liquidity.

Generally there are chiefly three types of mutual funds depending on its tenure:

  • Equity stocks offer long term growth and can be specific sector oriented
  • Bonds or fixed income schemes are good for retirees. Bonds offer a steady income and transaction is based on government debts and securities.
  • Money market funds offer safe yet low returns compared to the other two schemes mentioned but guarantees the principal amount invested and are generally short-term.

Mutual funds can be availed either through banks, finance planners, brokers or third parties that require additional service fees.

Grow Tree

Individuals who have a handsome amount to be garaged for extra money can try their hands on tree growth or forest growth funds which come under the Natural resource investment.

The funds are long term and require at least about 10-30 long years to reap remarkable benefits.

It can be very heavy on the pocket to purchase forest land and trees.

Generally portion holdings are acquired and the funds are pooled in to purchase the piece of forest land for timber.

Major advantage of tree farming is that no capital gain tax for growing and no income tax for selling the timber.

The limited supply chain of timber has increased its demand manifold in recent times.

This investment requires a large capital and has low risk coupled with disadvantages like illiquidity and a pretty long tenure of investment.

Land Investments

Empty land or barren land has been a point of interest for many investors as it comes with a number of benefits.

First purchase or capital required is cheaper than buying a built property. With only a small additional maintenance charge the plot of land can be left all by its own to augment its value over time.

This appreciating piece of land requires no utility bills, no mortgage, no wear out or worry about damage or wear and tear, neither can it be stolen or destroyed.

This form of investment offers a great return with minimal risk.

It offers good resale value but money invested is non-liquid till resale.

The plot of land can be either utilized for farming, building construction or for commercial purpose and is an absolute all-round winner.

Sound knowledge about the locality and the trend of growth of the plot concerned enables one to reap its benefits to the fullest.

Share Trading

Stock market or share trading had ever been a challenging as well as a risky venture for decades. With the turbulent global market, prediction of share prices has become uncertain.

Thus it is best advised that one should procure sound knowledge as well as guidance through some expert in order to invest their hard earned money.

If properly planned, share trading can be the quickest and most lucrative of all money making instruments. It requires a lot of patience, discipline, research and perseverance in order to be successful with share trading.

The volatile nature of economy certainly poses a threat to individuals who are naïve with the entire process. It is best advised to be initially carried out under the guidance of an experienced share trader and independently work only one of thorough and confident.

The entire investment procedure involves risk with high gain.

Gold Bonds

The yellow metal has been a favorite for mankind from time immemorial and still offers a great value apart from its lustrous beauty. Gold bonds are considered a good way of investing money in the long run.

Although gold prices fluctuate, there is an overall increase in its value over the years matching inflation. Gold bonds are paper or electronic bonds where one does not get to keep any physical gold, thereby making it absolutely safe from theft and damage.

Also interest is paid for the amount allotted for gold and increases with the increase in gold value. If there is no price rise, then there is no earning and involves minor risk.

With so many money saving instruments in hand, it generally gets very confusing for an individual to pick and chose the correct path. It is always wise to take time and weigh the pros and cons for each and match ones priorities before investing.

These are the best investment ideas which provide better returns that traditional fixed deposit.

There are tools available to calculate the fixed deposit returns that can be use to compare the overall return. Also plunging into investments without proper knowledge will one leave one befuddled and at monetary loss.

Although unconventional methods of money parking involve high risk, it also gives unimaginable returns if tapped and tuned properly.

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