Investment is a complicated business that requires patience and strong will. One must be dedicated to the cause enough to take it to the finish line, but the key is to not do it with the following rush because you cannot invest in carrying high expectations. Most people invest because they seem to think that it will immediately account to huge returns and that there would be no infiltration of risk which is just plain wrong, maybe even a myth.

The thing about investing is that there may be a chance of profitable returns, but they do not come in solitary without the company of risk as it is no ideal situation. The investments are the name of encountering potential risks either high or low but the fact remains that the intensity of risk can be greatly reduced, however, not eradicated completely.

Below are some options that have proven to be beneficial:

Debt mutual funds

These mutual funds are considered open-ended debt funds that are less volatile and more like to generate high beneficial returns, reducing the degree of risk to a great rate. The stability rate of these funds is comparatively higher to the ones offered in equities. There are multiple instruments that correspond to different mutual funds categories and these instruments carry a different rate of risk and time zone factor which may be specific to the person diving in such investment.

Mutual fund debt fixed maturity plans

These fixed maturity plans are branched down from the mutual fund’s sector and unlike the debt mutual funds, they are close-ended in their own terms. These maturity plans, as the name indicates, refer to plans that expire on or before a due date or their maturity date is fixed. These plans involve the investment of different fixed income options such as deposits, bank certificates, bonds, etc.

PPF

Public Provident Funds also called PPF funds are savings scheme announced by various governments including India. In this scheme, the interest on the accounts is paid the authorities. There are to taxations generally. The last applicable interest rate on PPF was 8%. The reason why it can be one of the most beneficial schemes for you is that interest and principal are handled by the government. The interest rate is higher than FD rates most banks offer.

FMPs

Fixed maturity plans (FMPs) are a specific kind of debt mutual funds that have a closed end. These funds mature after their decided time period ends. As a new investor, you can only get MFPs when the new fund offer period opens.

Fixed Deposits

Fixed deposits are offered by various banks or NBFCs as a financial instrument. With an FD you can make a higher percentage of interest as compared to a savings account. In western countries, it is also referred to as a time deposit. Unlike a recurring deposit, Fixed deposits cannot be withdrawn until the maturity.

Recurring Deposits

As discussed in FD, recurring deposits would let you regulate your investment on a monthly basis without maturity. The savings are done for the long term. As an investor, you can choose your own period of deposit and monthly installments.