Investment means nothing if you don’t earn any profit from it. The sole aim of investing in a financial product for everyone is to earn something out of it. With the multiple benefits of products such as ULIPs, mutual funds etc. It seems obvious that people would want their money to grow under the shelter of their benefits but attached with every investment option is the possibility of a loss. And this loss can sometimes be too much for a person to handle. It can shatter their financial condition in just one blow.

So the thing about investments is that when you do them, you should be wise enough to only employ those financial options for which you are prepared and the ones which you will be able to handle well. Investing in stocks when you don’t know a single thing about the stock market and the fluctuations can lead you into risking your precious money.

Here are some ways in which you can grow your funds wisely with the help of these financial products which are low on the risk appetite and guarantee returns for you to enjoy.

  1. Life Insurance

 

The most commonly used medium of financial safety. Life insurance provides medical protection as well so your hospitalization charges are looked after instead of making you fall neck deep in debt. They come packed with additional riders for extra safety and the death benefits make them all the more attractive. If misfortune befalls on a family, a life insurance helps soften the blow a little.

  1. Fixed  Deposits

Almost every Indian family has a fixed deposit account. This involves low-risk factor which helps the money to grow over time. They provide tax benefits as well which can make the present blissful. While FD’s are very beneficial, most investors need to keep some points in mind when they are selecting the FD which best suits their needs:

a.Credit profile – This provides help to the investors in determining whether the company will honor all capital and interest payments.

b.Interest Rate – This refers to the return rate of the fixed deposit, a deposit with a preferably high rate of interest will be beneficial.

  1. Unit Linked Insurance Plans

 

 ULIP or Unit Linked Insurance Plan is a market-linked product which offers the dual benefits of life insurance and investment to the policyholders. It is linked with the capital market and offers flexibility to invest in equity or debt funds according to the risk appetite. These dual benefits attached with ULIPs make them more attractive for the buyers. So you can work on higher returns while having a life cover to take care of you incase anything goes wrong.

  1. Stocks

 

They are preferred for higher returns among the investors, but the risks attached to the stocks are long term. Investment in stocks can be extremely profitable if you have the knowledge about the market and the ability to assess the good stocks from the bad ones. With a ready to take high risks, stocks can be profitable for the present needs and even for the future ones. If you have complete knowledge about the stock market, and are willing to take the risk, then stocks are the right choice for you.

 

  1. Public Provident Fund

 

The PPF serves as an effective tool which offers stability and long term investment option. If started from an early age, it can serve as an essential means to meet a crisis while also working as an investment tool. It offers tax benefits to its holders and remains one of the most favored investment options among the Indian population. Initially, a PPF is a 15-year scheme which can be increased indefinitely with a block of 5 years. It offers an interest rate of 7.8%. The maximum amount which can be Rs. 1.5 lakhs in a financial year.

  1. Mutual Funds

 

One of the slightly risky yet still a bit safe options is investing in mutual funds. They offer everyone a chance to invest safely with a registered medium. Though risks are involved but often the returns are more than the investment. As a long term investment plan, it is the safest one.

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