Here are the 5 Investment Strategies to Consider for Striking the Perfect Balance between Safety and Growth

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Investments are necessary if you want to secure your long-term and short-term financial well-being. However, the type of investment you make clearly depends on your existing financial stead and even your accrued preferences. While certain individuals prefer a steady source of income post-retirement, some might even consider short-term growth as the prior essence of the concerned investment. 

Regardless, you must take certain aspects into consideration before making investment decisions. In the subsequent sections, we shall enlist five of the most important strategies that need to be factored in for making productive asset distribution choices:

Consider the Goals

Before you take a plunge, you must ascertain your long and short-term financial goals. In case you are looking to invest with a retirement corpus in mind, an NPS is a better option to consider. However, if want to avoid long-term lock-in periods, setting up an FD account with a bank or any other financial institution is a much better choice.

Safety vs. Growth

If your financial preferences are focused on long-term safety, PPF, LIC policies, and NPS are better options to consider. Then again, if you want to strike the perfect balance between safety and growth, ELSS and ULIPs are always the better bets to opt for. Irrespective of what you zero in on, it is necessary to evaluate the preferences with utmost clarity.

Growth Rate

Unlike a term plan that secures your family, you would want your investments to fetch decent returns. Therefore, before putting your money in a specific fund, it is necessary to keep a close eye on the uptick and appreciative potential. For instance, if an FD is your go-to investment policy, always check for the competitive fixed deposit interest rates offered by diverse financial institutions.

Be Careful with the Market Linked Schemes

It is understandable if you are more inclined towards SIPs, Mutual Funds, and ULIPs to make the best use of the market potential. As these are risky funds, you need to be absolutely sure before capitalizing on each. Most importantly, if you are more into equity-centric investments, it is advisable to diversify the options, based on the risk profile of the concerned stock. 

Consider Tax Benefits

A majority of investors prefer funds having tax-saving potential. This is why you must ascertain this aspect before putting money in a find. In case you are planning to open an FD account and tax-saving is one of your priorities, consider opting for a minimum lock-in period of 5 years. Similarly, if you are worried about taxation on your NPS fund upon maturity, consider against the same, only due to the minor annuity restriction. Therefore, understanding the tax-saving module or rather hierarchy of an investment plan is necessary to take note, before you can consider putting your hard-earned money into the same. 

In case you want to make the best investment decisions, it is necessary to take each of the mentioned factors into account and put them in play for maximizing growth and that too without compromising the safety of your corpus.

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