The best investment options depend on the particular investor. Two people cannot be the same and so, the definition of this ‘best’ is bound to vary from investor to investor. At the same time, the market conditions are also responsible for making an investment option good or bad. There are several factors, which are related to the definition of bet investment plan.
The safety of the investment is the basic factor for investing money. There are several types of risks, which are included in an investment. The prime risk is of facing huge loss. On the other hand the slow paced growth of the investment is also a matter of concern for the investors. So, the best investment should cover these factors.
Return is another matter of concern for the investors. There are several investment mediums, which promises low but safe return. On the other hand, the high yielding mediums are related to the high level of risk.
Now this depends solely on the investor to identify the best investment option according to his or her mental set up. At the same time, the availability of the invested money at time of emergencies is also very important from the investors’ perspective.
The best investment options should have this flexibility that it can allow the investor to draw back cash when there is any kind of emergency.
Everybody wants to save some amount of money from the taxes. Now if the investments can do this for them, then it is surely going to be a lucrative option for them. It can also be considered as the best option if it can provide the above discussed factors with the tax relief.
According to all these factors, mutual funds can be considered for this category, because the mutual funds are highly safe options. The mutual funds assure a specific amount as return. Though the amount of return is low compared to the stock trading returns, but the amount of risk is also low.
There are several other plans, which provide the investor with tax relief. Because of this feature the 403(b) plan is very popular in the US. Investments through this plan can save some good amount of money from the investors’ payable tax.
The investments can be made through the discount brokers to save a good amount of money. Another way of making best investment is to use the individual retirement account or the automatic investment plan. The initial costs of investment are very low in these cases, which can make the investment look better.
Last Updated on : 23rd June 2015