Investing in equity without risk

I have seen many people who are scared of investing in equity either directly or through mutual funds. This is mainly because of the fear of loosing capital or at times due to low understanding of equity as an investment instrument.

You can create a debt portfolio plus a equity top up in this case. This will give
100% protection to your capital amount invested.
Will help you increase your returns through equity.

How can you achieve this.

Alternative 1

You can choose to invest the amount you have in a Fixed Deposit and opt for a monthly or Quarterly interest payout option.
Alternatively you can also choose to invest in POMIS ( Post office monthly income scheme) which pays out monthly interest rate.
You can invest the interest so earned in an equity mutual fund through the SIP (Systematic Investment Planning) route.

Alternative 2

Suppose if you have Rs X with you now, you can invest such an amount in an instrument like F.D/ NSC for a period, say 5 years. You can invest amount X-Y in F.D/ NSC such that you will receive Rs. X on maturity. The remaining amount (i.e. Y ) can be invested in Stocks/ Equity/ Balanced fund based on your convenience.

Thus you can use equity as a top-up and sleep without the fear of loosing your capital.

article originally published in (investment strategy where you dont loose money)

2 Reader's Say:

atul tayade said...

I beleive the moment you are into equities you are taking risk with your capital.

As far as your suggestion is concerned I feel that when you opt for FD's and PO schemes then equity are a strict No for you. If you run certain numbers, then you will find theses schemes have very less interest rates and assuming investment of that amount will take long time to achieve substantial returns.

Please allow the comments from Blogs other than Blogger to comment on... what if we dont have a google account. I also want to post comments through my wordpress blog and not from my blogger account

hellan said...

thanks for explaining about how we can safely invest our money in euity. really you had given good knowledge about investing in equity without risk. thanks for this.


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