4 quick and easy investment options

Most of the investors want to invest in funds that will get them high returns in a short time without any risk of losing the amount invested. They are always on a lookout for the best investment options so that they can double their money in a few months or years. 

But, the truth is that there are no such investment options which give high returns in a short time with no risk involved. The risk and return factors are inversely proportional to each other. The greater the risk, the higher the result! The lesser the risk, the lower the return! 

So, it is important to decide if the investors are willing to take a risk for higher returns or do they want to play safe and get assured lower returns. The investment products can be classified into financial and non-financial assets. 

Let us look at some of the quick and easy investment options for investors. 

• Online SIP investment

• • Systematic Investment Plan (SIP) is a plan wherein the investor needs to invest a small denomination of amount on stipulated intervals for a specific time period. It can be said to be similar to the regular savings scheme like a recurring deposit. 
  • SIP allows investors to buy units as per the pre-decided frequency. The amount to be invested and the scheme are selected by the investor in advance. 
  • It can be said that SIP is one way of bringing financial discipline to investment by creating a schedule for timely investments. 
  • It smoothens the ups and downs of the market fluctuations over time and gives higher results with lesser risk. 

• Money market accounts

• • Also known as liquid funds, these are also mutual funds where investors can invest in various instruments such as commercial papers, term deposits, etc. 
  • Liquid funds have a maximum maturity date of 91 days and enable high liquidity. 
  • They are a less-risk option and provide higher returns when compared to bank savings. 
  • Investors with surplus cash or those who wish to generate emergency funds can opt for money market accounts. 

• Short term debt funds

• • These funds are managed with the main aim of providing good returns to the investor without fearing the volatility of the market and securing capital.
  • Debt funds are tax-efficient when compared to fixed deposits of the bank, but are complex to understand and follow. 
  • It is important to get a thorough knowledge of debt funds before opting for them. 

• Equity mutual funds

• • These are investments in equity stocks and can actively or passively managed by the investors. 
  • The equity schemes are categorized according to market-capitalization, sectors in which investments are made, domestic or international investments.

Depending on where we choose to invest, we can get either a fixed-income or get returns based on market fluctuations. The above 4 investments are market-related and result in higher returns when the volatility is negotiated skillfully.  

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.