The American economist Robert Frank is a published author of many books related to the finance and investment options. In his book, Darwin Economy, he speaks about the free market and the powerful competitive economic forces. He suggests the readers some options for safe investment.
It is the goal of most of the investors to invest in such a way that they get sky-high returns from it, but which is also risk-free and they do not lose the principal of investment. This is the only reason, and most investors are on a look-out for something that is less risky and will also yield them good returns from the money invested initially. But the investment market does not work like that. In fact, it has a direct relation, higher the returns expected, and higher is the risk involved.
When investing, one should consider his/her risk-taking profile. If you are in for more significant risks if it involves bigger returns, you can always invest in such markets. There are generally two kinds of investment, the financial investments, and the non-financial investments. For financial assets, they can be divided as the investment options in the market-related products like the PPF, stocks, mutual funds. Here are some of the investment options:
1. Direct Equity
It is also known as the stock market. As much higher returns it has, it also has the risk of losing a major portion of the money invested. It needs careful observation and study of the market.
2. Bank Fixed Deposit
This is a much safer option of investment, and is widely preferred in India.
3. Public Provident Fund
Just like an FD, PPF is also another safe choice for investment. Since this investment option has tenure of about 15 years, its impact of compounding the tax-free interest is high.
It is among the traditional investment options practiced by the people. But processing gold in the form of jewellery has its own negatives. It has the concern of storing the jewellery and secondly while selling it off, there is a deduction in terms of making charges which range to about 6-14% of the total amount.
Investing in cryptocurrency has lately become a trend. If invested very carefully and by studying it all, there are chances of you becoming an overnight millionaire. But if you wish to fall in this investment category, you must be ready to take risks involved. Along with Human-Robot Trust, investment in Cryptocurrency is also gaining a lot of popularity.