Know How to Invest Risk Free & Best Investment Plan with High Returns

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Know How to Invest Risk Free & Best Investment Plan with High Returns
With the ever rising cost of living and increasing expenses, you must be looking to invest your money in avenues which can fetch you high returns. While you take an investment decision, it is vital to consider the risk factor because losing hard earned money is something you cannot afford. 

Striking a balance between the risk and the returns is an art. It often creates a lot of confusion regarding where to invest, which are the best investment plan with high returns in India, are there any short term investment plans with high returns and so on. In this article, we will try to solve all your confusion about the best investment plan with high returns.

Firstly, you need to understand what is risk free investing?


What Is Risk Free Investing?
In simple language, risk free investing is a way of investing where there is almost no risk of loss of capital and there are assured returns. Investors always look for the best investment plan with high returns.

Now let us learn about the different types of risks that are associated with investment instruments.


Different Types of Risks

•Interest Rate Risk
This type of risk is associated with fixed income instruments. The risk involves loss in the value of instrument due to change in the interest rate. 
 
•Political Risk
Political risk leads to a loss in the value of investments due to certain political developments or political changes in the country.
 
•Market Risk
Market risk is associated with equity and fixed income instruments. This risk can lead to a loss in the market value of the instruments.
 
•Liquidity Risk
Liquidity risk is when the fixed income instruments or real estate is not able to get its equitable price in the market because of less or no buyers.
 
•Taxation Risk
Taxation risk is the one where the return on capital would decline due to an increase in taxes. 
 
•Purchasing Power Risk
Purchasing power risk applies to fixed income investments. Under this risk, the purchasing power of the investment declines due to inflation.
 
•Reinvestment Risk
This risk is applicable to fixed income instruments. Here the risk involves reinvestment of the investment at a lower rate of interest upon maturity.
 
•Legislative Risk
This risk is applicable to all investment avenues. In this type of risk, the investment looses its value or other advantages due to a change in legislative.

Whether you are looking to invest in monthly investment plan with high returns or short term investment plans with high returns or any other investment plans in India with high returns, the above risks shall be applicable to all.

Since you are now aware of the different types of risks related to investments, you must also know the spectrum of risk associated with the different investment options. 


Spectrum of Risk

This means the quantum of risk associated with any type of investment. The various types of risks on investments can be broken down in the following manner:

•Very Low Risk and Very Low Return:
Insured municipal bonds and fixed deposits.
 
•Safe and Low Returns:
Life insurance, saving bonds, treasury securities, fixed deposits, etc.
 
•Low Return and Low Risk:
Corporate bonds and uninsured municipal bonds.
 
•Moderate Risk and Moderate Return:
Selected equity stocks and mutual funds.
 
•Medium Risk and Medium Return:
Equity stocks of blue-chip companies, equity mutual funds and real estate.
 
•High Risk and High Return:
Stocks of small cap and mid cap companies, equity small cap mutual funds and mutual funds that invest in particular sectors of the economy.
 
•Aggressive Returns: 
Commodities, small or penny stocks, derivatives, limited partnerships and oil and gas investments.
After understanding the spectrum of risk, let us now learn about the ways through which you can make a monthly investment plan with high returns or short term investment plans with high returns or long term best investment plan with high returns in India. 


Ways of Investing in Best Investment Plan with High Returns

•Invest Regularly
If you are starting with an investment plan, make sure you invest regularly in it. Like for example, mutual fund SIP must be made in all the phases of the market. The disciplined approach towards investing helps you in creating good wealth for the future.
 
•Debt Plan
What makes debt plans attractive is the fact that they guarantee fixed returns. There is no risk involved and the returns are assured. As an investor, you are at peace because it is not risky. As a beginner, you must make your first investment in debt plans.
 
•Timing Market
When you are looking for the best investment plan with high returns in India, you must never try to time the market. Just be regular towards investing and that will help you reap long term benefits. 
 
•High Return Options
After making an investment in various less risky options, you may invest some part of the money in high return options. Here you must analyse various risks that are associated and accordingly make an investment decision. You can invest in any of the pre-decided investment options like stock exchange, derivatives, etc.
 
By following the above mentioned points, you can become a disciplined investor and create wealth for the future. Since you are now aware of how to invest risk free, let us now learn about some of the popular investment options available to the investors which have very low to moderate risks.


Popular Investment Options Carrying Low To Moderate Risks

•Value Stocks
Investing in the stocks of blue-chip companies is one of the best investment plans in India with high returns. You need to prepare a list of 10-12 stocks in which you would like to invest. The list must be prepared only after a thorough analysis of the companies. Always compare the current price of the stock versus the intrinsic value of the stock. Whenever the price of the stock falls below its intrinsic value, it is the best time to invest.
 
•Sectoral Funds
One of the best investment plan with high returns comprises of sectoral mutual fund units. By investing in the mutual funds that invest in specific sectors of the economy can give incredible returns. Investing in sectoral funds can be done in the form of SIP. Here you have to pick mutual funds having a good track record. This type of investment must be done in that sector which has underperformed over the years. This is because when recovery will happen, the value of sectoral funds will rise quickly. These funds can give up to 12% return per annum.
 
•Dividend Paying Stocks
Dividend paying stocks are those stocks in which the company shares its part of profits with the shareholders. By investing in stocks which pay dividend on a consistent basis, you earn a regular source of income. You must carefully pick the stocks that pay high dividends. The time of purchase for such stocks is very important. You must look to add them at every 10% fall from a preferred price. Apart from income from dividend, the share price appreciation further increases the returns.
 
•Fixed Deposits
One of the best investment plan with high returns and no risk is fixed deposits in the bank. The fixed deposits give an assured return on your investment. You can invest any amount in the fixed deposits and hold it for the long term.
 
•Real Estate Investment
Investing in the real estate or property is another safe and high return investment option. You can invest in a property at a strategic location and hold it for the long term for appreciation in the value. Furthermore, you can even rent out the property which can give you good returns on a consistent basis.
The above mentioned points suggest some of the best investment plan with high returns in India. If you are a beginner at investing or need some assistance regarding investment, you can contact IndiaNivesh Ltd.. 






Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.

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Stock Market Investment - Do’s and Don’ts of Stock Market Investing for Beginners

Do’s and Don’ts of Stock Market Investing for Beginners Making money in the stock market is an art. Often people enter in the share market and invest money without a disciplined approach. Likewise, beginners often speculate and bet on the stock hoping that the price will go up. However, this is not the right approach for stock market investment. To help the beginners with stock market investment, we suggest some of the stock market investment tips that they can follow to be successful in the market. This mini stock market investment guide will enhance your knowledge on the basics of the market and make you an informed trader or investor. Things to do in Stock Market• Learn and InvestAs a beginner, the first thing you must do is to acquire sufficient stock market education and learn more about it. Self-education is the best education here. Start with the basic concepts and information. By doing so, you will understand how to do stock market investments. • Take Small StepsAs a beginner, you must start with small investments in the stock market. When you get sufficient knowledge and confidence, gradually increase your stock market investment. This approach will make you a successful and better investor in the long run. • ResearchOne of the important stock market investment advice for beginners is to invest in shares after a good research. Beginners must research about the fundamentals, financials, management and many other areas before making any investment. • Keep a Check on EmotionsStock market investment requires a practical approach. Decisions taken on the basis of emotions can prove to be fatal. Often beginners make decisions out of panic and book losses. This must not be done and a check on emotions in the stock market is compulsory. • DiversifyAnother important stock market investment tips for the beginners is to diversify their portfolio. It is always recommended to not put all your eggs in the same basket i.e. not invest all money in a few stocks. Diversifying the portfolio protects you from loss in one sector against profit in another sector. • Invest Surplus OnlyIt is always advisable for the beginners to invest only their surplus money in the stock market. This is because the stock market is volatile, risky and returns are not guaranteed here. Therefore, only that portion of money must be invested in the market which will not affect your regular lifestyle. • Have Investment GoalsThe investor must invest in the stock market with an investment goal. It is important that the beginners must have a future plan in mind while investing. He must know what he expects out of his investment and the time period of the investment. An investment with a goal helps you in building a good portfolio and creating wealth for the future. The above-mentioned are a few things that a beginner must do in the stock market. Now let us learn about the things that a beginner must not do in the stock market. Things Not to do in Stock Market• Don’t Invest on TipsAn important stock market investment advice for beginners is that they should not buy shares on the basis on tips. Any recommendation or tips from near and dear ones must be ignored. Beginners should invest in shares only after conducting their own research and analysis about the company. • Avoid Herd MentalityNever invest in shares looking at what most of the people have purchased. It does not matter how much returns others have generated with the investment. Your investment decisions must be based on your own research rather than following what the crowd is doing. • Avoid Unnecessary RisksAs a beginner, you are learning about how to do stock market investments. You must avoid investing in high risk shares in the hope of high returns. The greed of earning quick money often forces you to put money in stocks that have lot of associated risks. • Avoid Stocks You Don’t UnderstandAnother important stock market investment tip for beginners is that they must avoid investing in stocks which they don’t understand. Beginners must take time to understand the business of the company and invest only after knowing its full profile. Investing after analysing the future performance of the company will help you in making higher returns. • Avoid Overtrading As a beginner and an investor in the stock market, your aim is to invest money for the long term. You must avoid taking intraday trades because that is for people looking for short term gains. Moreover, overtrading often results in capital erosion and huge losses. As an investor, you must analyse the company and take a long term bet. The above-mentioned points act as a stock market investment guide for beginners. If you are a beginner and want to invest money for the long term, you can open a demat account with IndiaNivesh. Our in-house professionals and experts help you in making a diversified portfolio after understanding your risk appetite and duration of the investment.Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.

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Balanced Mutual Funds – Why You should Invest in Balanced Mutual Funds

Why you should invest in balanced mutual fund? One of the ways to grow your savings is to invest in the stock market. Historically, investments made in the stock market have given a higher rate of return as compared to investments in fixed income products over the medium to long term. But investing in equity is highly risky since the performance of the equity shares oftentimes depends on market conditions as well as performance of the company. Choosing a company to invest in takes a fair bit of research which may not be possible for everyone. The next best alternative is to invest in an equity mutual fund, which too is highly risky for people who don’t have a higher risk appetite. The correct alternative for such investors would be to invest in balanced mutual funds. What are balanced mutual funds? A balanced mutual fund or a hybrid mutual fund invests its corpus in a mix of equity and debt. There are two types of balanced mutual funds: • Aggressive hybrid fund (More than 60% in equity and balance in debt instruments)• Conservative hybrid fund (More than 60% in debt instruments and balance in equity) A balanced mutual fund gives the investor the high growth that equity does and also the stability of a debt instrument. For investors looking to begin investing in equity, choosing a balanced mutual fund is a good way to start. What does a balanced mutual fund invest in? Balanced mutual funds divide their corpus between equity and debt instruments. When it comes to equity, the investments depend on whether the fund is aggressive or conservative. Aggressive funds may also invest in mid cap stocks and small cap stocks. Conservative funds invest a majority of their resources in large cap stocks which may not grow as fast, but are a stable form of growth. When it comes to debt instruments, the best balanced mutual funds invest in a range of instruments such as: • Government of India bonds• State Government bonds• Certificate of Deposits• Non Convertible Debentures• Treasury Bills• Commercial Paper• Company issued debentures and bonds It is possible to find out the portfolio on the mutual fund house’s website or on other finance websites. The debt portfolio is split up based on instruments and the risk level of the securities. Generally, hybrid mutual funds tend to invest in low risk securities. Before you pick one of these funds to invest in, it is better to analyze balanced mutual fund advantages and disadvantages so that you know whether this type of investment is the right one for you. Here are some reasons why to invest in balanced mutual funds: 1. Diversification of risk:Balanced mutual funds provide an excellent way to diversify portfolio risk. By investing in equities, they provide higher returns, however, since some portion of funds get invested in debt, they also stabilize the overall risk of the portfolio. For investors who are conservative, investing in a balanced mutual fund can provide a slightly riskier outlet with a higher rate of capital growth. On the other hand, for aggressive investors, diverting some portion to a balanced mutual fund can reduce the overall portfolio risk. 2. Higher returns:When it comes to balanced mutual funds India offers many alternatives to all types of investors. Conservative investors can put their funds in conservative hybrid funds that put a majority of their resources in low risk debt instruments and the balance in equity. This provides higher returns as compared to investing in pure fixed income instruments. For aggressive investors, these funds provide a fixed return which is useful in case of market downturns. 3. Tax advantages:Investing in an aggressive hybrid fund (more than 60% in equities) will give tax benefits since this gets classified as an equity fund. The gains on this will be taxed like an equity mutual fund with a holding period of 1 year for the gains to become long term. This provides significant advantages to the investor. On the other hand, conservative hybrid funds are classified as debt funds with a holding period of 36 months for gains to be long term. 4. Dividend:There are monthly dividend paying balanced mutual funds which provide dividend to their investors. Putting resources in these funds provides a regular return in the form of dividends as well as capital growth through equity investments. 5. Automatic portfolio rebalancingOccasionally, the balance between the equity markets and the stock markets is tipped to one side. Either of the market can be overvalued. In such situations, you may want to invest more in one of the two markets. However, in other funds, this may not be possible as the funds may be restricted due to the SEBI rules. However, when it comes to balance funds, the fund manager has the leeway to move between the two asset classes. Now that you have understood what are balanced mutual funds, where they invest and why to invest in balanced mutual funds, are you looking at making investments in balanced mutual funds? Here are some IndiaNivesh recommended balanced mutual funds which have given good returns to the investors.   Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.

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    What is Financial Market? A market is defined as a place where goods and services are bought and sold. Along similar lines, a financial market is one where financial products and services are bought and sold regularly. Financial markets deal in the purchase and sale of different types of investments, loans, financial services, etc. The demand and supply of financial instruments determine their price, and the price is, therefore, quite dynamic. Financial markets form a bridge between investors and borrowers. It brings together individuals and entities that have surplus funds and those who are in a deficit of funds so that funds can be transferred between them. This transfer of funds is done through different types of financial instruments that operate in the financial markets. Structure of the Indian financial market The Indian financial market is divided into two main types – the money market and capital market. The capital market is further sub-divided into different types of financial markets. Let's understand –   Let’s understand each type of financial market in details – Money market The money market is a marketplace for short-term borrowing and lending. Securities that have a maturity period of less than a year are traded on money markets. The assets traded in money markets are usually risk-free and are very liquid. Since the maturity period is low, the risk of volatility is low, and the returns are also low. Money market instruments are debt oriented instruments with fixed returns. Some common examples of money market instruments include Treasury Bills, Certificates of Deposits, Commercial Papers, etc. Capital market Contrary to the money market is the capital market, which deals in long-term securities. Securities whose maturity period is more than a year are traded on the capital market. Capital market trades in both debt and equity-oriented securities. 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It is the central bank of India entrusted with the formulation of monetary policies, credit policies, and foreign exchange policies, among others. Banks and financial institutions have to abide by RBI's rules and regulations to work in the financial market. Securities and Exchange Board of India SEBI is the primary regulator of the capital market, which consists of both the primary as well as the secondary capital market. Trading done in the capital market is governed under SEBI's rules and laws. Insurance Regulatory and Development Authority IRDA governs the rules and regulations which are to be followed by insurance companies and their intermediaries. Thus, IRDA is a regulator of the insurance market, both life, and general insurance market. Financial markets today have evolved and have become quite competitive with the participation of multiple players. They directly play a part in the growth of India's economy and allows investors and borrowers to trade in financial products and services in an easy and smooth manner. To take advantage of the Financial markets and varied investing opportunities, consider the team at IndiaNivesh, which is well-versed with types of markets and regulatory bodies.   Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.

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  • SIP – Different Types of Systematic Investment Plans in India

    Mutual funds now are a household name and building a mutual fund portfolio is synonymous with wealth creation. As the mutual fund industry continues to grow leaps and bounds, SIPs are considered one of the key growth drivers for this industry. SIPs help the investors to invest in a systematic and disciplined manners. Online SIP investments starting with Rs 500 per month (for few schemes min SIP amount is as low as Rs. 100 per month); digital distribution and hassle-free onboarding of investors, all have resulted in making an investment for SIPs most favoured investment option. To stay relevant with times and improvise their offerings, AMCs now offer many different types of SIP so that investors can choose the most suitable type of SIP for investment best suited to their individual needs and profile. Here are the different types of SIP investment available for investors- 1. Regular SIP One of the simplest and easiest forms of SIP investment is a regular SIP, wherein you invest a fixed amount at regular intervals. The time interval can be monthly, bi-monthly, quarterly or semi-annually. You can also choose daily or weekly SIPs, though it is not recommended in most cases. When you make your first SIP payment, you are required to choose your desired time interval, amount of the SIP and the tenure of the SIP. In a regular SIP, you cannot change the amount during the tenure of the investment. If you are a salaried employee, choosing a monthly SIP, usually in the first ten days of the month, once your salary is credited to your bank account is highly recommended. 2. Step-up SIP Without a doubt, SIPs help brings about financial discipline in your life. Over time, as your earnings increase, it is important to increase your investments as well so as to keep them aligned with your income level and financial goals. A step-up SIP, also termed as a top-up SIP, is an automated solution to increase your SIP contribution either by a fixed amount or a fixed percentage after a specific time. Using Step-up SIPs will help you reach achieve your goals faster and also help in long-term wealth creation. 3. Flexible SIP For investors with irregular income, even after being well aware of the benefits of SIPs, the biggest reason for not starting a SIP is not being able to keep up with the fixed periodic investments. A flexible SIP is a perfect solution for such investors as it gives the flexibility to start, pause, decrease or increase your SIP. Depending on your flow of funds, you can change the SIP amount seven days before the SIP date. In case, there is no intimation of change, then the default amount entered is deducted for the SIP. 4. Perpetual SIP Normally, when you choose a regular SIP, it has a fixed tenure, with a starting date and an end date. But, if you are unsure about how long you want to continue the SIP, you can opt for a perpetual SIP. In case of a perpetual SIP, you leave the end date column blank and you can redeem your SIP once you have reached your financial goal. If you opt for a perpetual SIP, then it is important that you monitor the returns of your investment, to keep a track of the fund’s performance over time. 5. Trigger SIP A trigger SIP is for seasoned investors, who have sound knowledge of the financial markets and are accustomed to tracking the market performance daily. Using a trigger SIP, an investor can choose an index level, a particular event or NAV to start the SIP. An investor can set trigger points for upside and downside conditions and can redeem the amount on achieving the pre-specified target. Investors can oscillate their investments between debt and equity schemes within the same fund house. A trigger SIP is recommended only for investors who have a thorough understanding of financial markets. 6. SIP with Insurance Insurance is an important part of financial planning. In order to make mutual fund offerings more lucrative, certain fund houses offer free insurance cover if you opt for SIPs with a longer duration. The initial cover is usually ten times the first SIP and gradually increases over time. This feature is only for equity mutual fund schemes. The term insurance offered is just an add-on feature and does not impact the performance of the fund. 7. Multi SIP The multi-SIP enables starting SIP investment in multiple schemes of a fund house through a single instrument. This facility can help investors to build a diversified portfolio. Investors can start SIP in various schemes using a single form and payment instruction, thereby reducing the paperwork involved.   CONCLUSION Over the last few years, SIP returns have earned investor confidence and are the most preferred investment option of retail investors. If you are unsure on how to choose the right SIP for you and want correct guidance, then consult our expert financial advisors at IndiaNivesh for best-suited SIPs for investments.

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  • Know What is Pre-Market Trading & How it Works in Share Market

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This period is used to ensure a seamless transition to regular trading hours. Any abnormalities from the previous two slots are addressed during this time.   Calculation of Opening price during the pre-market stock trading session The opening price of the stock during this session is determined during the second phase i.e. Order Match session. It is done with the help of a specific methodology. This calculation method is referred to as the call auction methodology or the equilibrium price. The stock price which corresponds to the maximum quantity of tradable shares is known as the equilibrium price. It is a factor of demand and supply. The orders placed during the first eight minutes are matched at the equilibrium price and then traded accordingly. Some scenarios: If the highest tradable quantity corresponds to two different stock prices, then the stock price with the lower unmatched orders is taken as the equilibrium price. For example:   Stock Price Order (Buy) Order (Sell) Demand Supply Max Tradable Quantity Size Unmatched Orders (Demand minus supply) 105 1275 1160 25000 20000 20000 5000 99 2000 8000 20000 30000 20000 -10000   Though the maximum tradable quantity is same in both the cases, the equilibrium price will be considered as 105 as it has a minimum unmatched order size If the values of the highest tradable quantity and unmatched orders are same or equidistant, but they correspond to two different stock price, then the above methodology cannot be applied. In this case, the equilibrium price is taken as the stock price which is closer in value to the closing price of the previous day. For example, Stock Price Order (Buy) Order (Sell) Demand Supply Max Tradable Quantity Size Unmatched Orders (Demand minus supply) 105 1275 1160 25000 20000 20000 5000 99 2000 8000 20000 25000 20000 -5000 Assuming the closing price on the previous day was Rs. 110, then the equilibrium price in the above example will be Rs. 105.   What about orders that remain unmatched or are not traded in the pre-open session? Orders that are not traded or remain unmatched are carried forward to the general trading session. The opening price of these orders is determined in the following manner: Limit Orders i.e. orders wherein the price and quantity are already specified are carried forward at the same mentioned price Market Orders i.e. orders wherein the price and quantity are not specified are carried forward at: If the opening price was ascertained during the pre-open trading session but order not traded, then at the determined price If the opening price was not discovered, then they are carried forward at the previous day’s closing price   Stock Markets tend to be overwhelming for many investors. The concept of premarket trading can further compound the complexity level. However, as an investor, you should always remember that help is just around the corner. Professional experts like IndiaNivesh can help to simplify and demystify the entire process. The team at IndiaNivesh keeps a close eye on this Pre-market session to comprehend the mood and strength of the stock market. They track the pre-market stock prices and take the best decisions for your portfolio basis the market sentiments. Moreover, since they offer a wide range of services (broking, mutual funds, institutional equities, private equity, strategic investments, corporate advisory, etc.) they have a holistic view of the market and the economy. Their expert opinion can help you to amp up your investment game. You can read more about their offerings, vision and accomplishments on their website https://www.indianivesh.in/Disclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."

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