Safe and Dependable investment options for uncertain times

Everyone wants their money to be safe and away from uncertainty, but there is always a risk factor when you invest money. People get more worried when the market is uncertain.

Some investments are safer and more dependable. Below are some of the listed safe investment plans for uncertain times:

1. Preferred Stocks

These are the best way to get an assurance for regular income. One of the best safe investments, it’s just like a bond, but it’s neither a bond nor a common stock. It is a debt that companies choose to issue. It represents bonds or loans. It is shared but does not have power top the company, so it is different from equity shares.

2. Customer Staple and Utilities

Consumer staples being volatile but are still safer as the price does not fluctuate too much. These include products like groceries, personal care, and household products. These products are bought by people regardless of economic conditions.

3. Equity Mutual Funds

These invest in equity stocks. As per the Security Exchange Board of India, mutual fund regulations, equity mutual fund schemes must invest 65% of its total holdings as assets in an equity fund or equity-related instrument. An Equity fund can be managed both actively and passively.

In actively traded funds, the returns largely depend upon a fund manager’s ability to generate it whereas Exchange Traded Funds (ETFs) and Index funds are managed passively and track the underlying investments. They are also differentiated based on domestic and international equity funds.

4. National Pension System (NPS)

Investment in NPS focuses on long term retirement; it is managed by the Pension Fund Regulatory and Development Authority (PFRDA). It is a mix of fixed deposit, equity, bonds, liquid funds, and government funds. The minimum annual contribution in NPS has been reduced by the government from Rs 6000 to Rs 1000. This is generally a safer way to invest your money as it does not require a huge lump of money and does not fluctuate very much.

5. Bank Fixed Deposit

Also known as FD, it is comparatively safer than much other investment in India. The interest is chosen as per the principal monthly, quarterly or half-yearly. These interests are then taxed under income as per the principal’s income slot.

6. Gold ETFs

Buying physical gold can be expensive and risky, as there is a cost involved in making jewelry and the risk of safety. But Gold ETFs are a much better idea when you think of investing your money during economic uncertainty. The price of gold generally rises during any economic crisis. Moreover, you can also invest in paper gold or gold bonds issued by RBI.

7. Real Estate

Real estate can be one of the best ways to invest your money. It can earn you rentals, and there is always a capital appreciation. The most important thing to keep in mind before investing in it is the location.

However, unlike other assets, this is highly illiquid, and it’s difficult to get the regulatory approvals after the new regulation of real estate.