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While selecting an investment avenue, you have to match your own risk profile with the risks associated with the product before investing. There are some investments that carry high risk but have the potential to generate higher inflation-adjusted returns than other asset classes in the long term while some investments come with low-risk and therefore lower returns.
There are two buckets that investment products fall into – financial and non-financial assets. Financial assets can be divided into market-linked products (like stocks and mutual funds) and fixed income products (like Public Provident Fund, bank fixed deposits). Non-financial assets – many Indians invest via this mode – are the likes of physical gold and real estate.
Here is a look at the top 10 investment avenues Indians look at while saving for their financial goals.
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