Fixed income to market linked: Popular investments you should know

Majority of investors look at high returns and low risks while parking their money in different investment vehicles, and often fall prey to tall claims made by financial advisors and even companies.

However, no one can assure you sky-high returns and low or no risk in the market is a myth. There can be investments with high potential of giving good returns but they will also come with high risks. Similarly, many fixed return investments come at low risks.

Thereby, you’ll have to look for investments that suit your risk appetite and financial goals.

Here are some fixed income and market linked investments that you should know about to make smarter and informed choices.

1. Public Provident Fund (PPF): This is a fixed income investment tool, which has a lock-in period of 15 years. Many investors turn to PPF due to compounding effect and tax-free interest.
2. Equities: This is a non-fixed income vehicle and is termed as a volatile asset class. You have to study the stock market and get a deep understanding of how it works. You can invest in different stocks depending on your risk appetite and assess your returns.
3. Mutual funds: Mutual funds come with in-built diversification. You can choose among different types of mutual funds such as equity, debt, balanced, and hybrid depending on your short-term and long-term financial goal. You can even do a Systematic Investment Plan (SIP) and park a fixed amount of money every month that can help you build a huge corpus.
4. Fixed Deposit (FD): It is a fixed-income investment choice, which is quite easy to comprehend. If you cannot understand stock market or find difficulty in mutual funds, you can open a FD with your bank. Check the interest rate before opening one.
5. National Pension System (NPS): It is long-term and retirement-focused investment product. It is a mix of equity, FDs, corporate bonds, liquid funds, and government funds.

Investing can help you achieve many desires. In case you can’t fathom either of them, hire a sound financial advisor who can understand your requirements and work towards wealth creation.