7 High-Return Investments For Beginners In 2022

The sudden fallout of the Coronavirus pandemic has made us realize how important is it to get financially free. The extra money not only makes you independent but also provides you the opportunity to relax and enjoy luxuries. One way to enjoy a comfortable financial future is through investing. An investment gives you long-term returns, regular income, and fits your financial circumstances. Now, the question comes, where to invest? Given below are the 7 best investments for beginners.

Best Investments in 2022

1. High-Yielding Saving Accounts

When you deposit your cash in any of the high-yielding saving accounts, you get an interest on the pay. With negligible overhead costs, you earn higher interest rates. Along with this, you can access the money through quick transfer or via an ATM.

Since the accounts are FDIC-insured, you need not have to worry about money loss. Further, the risk of losing purchasing power due to inflation is extremely low.

2. Direct Equity

It means investing directly in the stocks. You buy shares of a particular company that got listed on a stock exchange like BSE or NSE. Equity delivers high returns than inflation-adjusted returns. The only thing to remember is to use a stop-loss method as stocks fluctuate frequently and might bear a loss anytime.

Also Read: Best Digital Investing Platforms In 2021 Making Investment Easy

3. Debt Mutual Funds

It is suitable for investors who wish to have a steady return. Debt mutual funds are less volatile and less risky in comparison to equity funds. Debt funds invest in securities like corporate bonds, government securities, commercial papers, treasury bills, etc. Before you invest, you need to study the related risk involved in the scheme.

4. Public Provident Fund or PPF

PPF generally has tenure of 15 years; however, the tax-free interest is huge. The principal invested and the interests earned are backed by a sovereign guarantee. It is considered a safe investment model. The minimum deposit is Rs. 500 per financial year and the range can go as high as Rs. 1.5 lakh.

5. National Pension System

NPS or national pension system is basically a long-term retirement investment that is managed by PFRDA (Pension Fund Regulatory and Development Authority). You can consider it as a mix of fixed deposits, liquid funds, government funds, corporate bonds, and equity.

The annual (April-March) pay for an NPS tier-1 is reduced from Rs. 6000 to Rs. 1000. As per your risk appetite, you can ponder on how much money is to be invested in NPS.

Also Read: 5 Best Cryptocurrency To Invest In 2022

6. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

This investment scheme is for senior citizens (≥60 years). It pays a return of 7.4& per annum. The minimum amount that can be paid is Rs.1000 and the maximum is Rs.9250 per month. The tenure of the PMVVY scheme is 10 years. It comes with validity up to March 31, 2023.

7. Gold

Gold has always been a popular investment type. You can invest in Gold either offline or online. Being a highly preferred investment tool, it acts as a reliable investment cushion. The most suitable choice is Sovereign Gold Bonds that need to be invested for 5 year period.

These were 7 best investments a beginner can consider in 2022.