Dashmeet kaur | Apr 26, 2024 |
Best Low-Risk Investments in April 2024
Investment means putting your money into an asset with the intention of earning money. Financial Investments are of various forms like mutual funds, stocks, bonds, unit-linked investment plans etc.
What are low-risk investments?
It simply means any investment you make with a lower chance of devastating loss. Therefore, it is also less likely to gain in terms of potential benefits/gains.
Here are insights into some of the best low-risk investments you can consider in 2024:
Risk: Very low
Returns: Moderate
Also known as T-bills, Treasury bills are one of the safest low-risk investments to consider. Speaking of history, India has always paid off its debts making this an attractive investment as well.
They offer maturity of 91,182 and 364 days. They are sold at a discount to their face value for which the return you get is the difference between the purchase price and par value at redemption. The market for treasury notes is most liquid which means you get access to sell it before maturity.
2. Savings Bond
Risk: Low
Returns: Depends upon the inflation rate
The government of India holds a 7.75% savings bond. They are guaranteed by the Indian government which makes it the safest option to invest as you get the amount invested.
Minimum investment required: INR 1000.
Payable: Every 6 months.
Redemption period: 7 yrs (in case of senior citizens above 60 yrs, premature exit is allowed.
Risk: Very low
Returns: The best CDs may offer returns that beat /match high-yield savings accounts.
CDs are time deposit accounts that allow you to invest your money at a set rate for a fixed period of time. Also, you can definitely withdraw your money before maturity but it demands an early penalty fee for the same. There are different types of CDs and every institution will have different fees and rules for the same.
As CDs in India should registered with SEBI, it makes it a low-risk investment as well.
Risk: Moderate
Returns: Moderate to high
As you know public companies pay dividends, but dividend aristocrat is special as it has long-term stability and reliability in their dividend payouts.
A public company is known to be a dividend aristocrat after having increased its annual dividend payments for a minimum of 25 years in a row. For a fact, we know it’s risky to own shares in a public company but dividend aristocrats can impart you with dependable cash flow without considering the stock market.
Risk: Low
Returns: Modest
Money market mutual funds invest in various fixed-income securities with short maturities and very low credit risks. This sort of investment offers affluence of liquidity, and because of the type of investments they make, they are considered to be secure with a compact risk of losing money. Additionally, they are not backed up by sovereign guarantees.
To your knowledge, nothing is considered a 100% safe investment. There is always a risk followed by it, what matters is your knowledge in the field of investing so you can differentiate between low-high risk investments or what is more beneficial for you.
In case of any Doubt regarding Membership you can mail us at [email protected]
Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"
