The stock markets are witnessing huge ups and downs once again in the midst of the Corona crisis. In this situation, the investors are more likely to suffer huge losses. Because no one can guess what will happen in the market. But there are still some good options at such a time, in which you can earn good money by investing in these instruments. Go through below options to earn bumper profits.
Government Bonds :
The RBI said in February that it would allow retail investors to invest in government bonds directly by opening a gilt account with them. Currently, the return on a 10-year benchmark bond is 6.03 percent. If you hold these bonds for the full 10 years, you will get 6.03 percent return per year. This instrument is guaranteed by the Government of India. Therefore, your money will be completely safe.
7.15% Government of India (Taxable) Savings Bonds :
These bonds were made available for sale for the first time from 1 July 2020. These get interest at floating rate related to NSC. Currently the rate is 7.15% and is revised every six months based on the NSC rate. You are not paid the accumulated interest on these bonds. You can buy these bonds from branches of SBI, HDFC Bank, ICICI Bank, Axis Bank and other banks. These bonds are also government, so are also safe.
AAA-rated corporate bond funds :
These corporate bond funds are required to invest at least 80% of their money in corporate bonds rated AA- and above, as per SEBI guidelines. AAA ratings are good and investing these funds in such bonds will reduce the risk anyway. Also, these corporate bond funds offer higher returns than bond funds. You also get good returns from FD here.
Investment in Stocks :
Although equity markets have volatility, bluechip stocks or fundamentally large-cap companies have the lowest risk. Equity also has the potential to beat inflation in the long run. Some of the blue chip stocks suggested for investment in India include Reliance, Infosys, HDFC and Bharti Airtel. These companies have been present for a long time and are the major companies in their respective sectors. So they are safe too. By the way, their condition may also worsen at the time of market decline. But they also have the ability to recover.
ETF Investments :
Exchange traded funds or ETFs are mutual funds that trade on exchanges. In ETFs, you can choose any bond or equity option. ETFs or exchange-traded funds collect the money of many investors and invest in various securities (such as debt securities, shares, etc.). They are listed on the exchanges and traded in them. Most of these ETFs are registered with SEBI. ETFs are a good option in terms of investment. These give the investors good exposure in the stock market.
Investments made in these above options might give negative returns during short period, but in the long period (minimum 3 to 5 years) you will be enjoying bumper profits. Invest at your own risk though.