High Return Investment Plan in Delhi

The term “High Return Investment Plan” has always sounded very catchy. But, many investors keep off from investing money in simple plans that promises of higher returns because they think that higher return comes with high risk. In this blog you’ll come to know some of the best investment options that are definitely going to bring a difference in comparison to other High Return Investment Plans in Delhi. However, before proceeding further, you need to know that long-term investment plans are the best plans to expect higher rate of interest.

To negate all the factors that may prevent you have reaping higher return, the best way is to stay invested for long time. As per the definition of higher returns, its formula goes like this: Higher Return = Risk Free rate + Risk Premium. Generally, on a 5 year Fixed Deposit, risk free rate is 8.5% p.a. In this case a higher return investment plan looks like this, Higher Return = 8.5+ Risk Premium. Hence, high return investments are those which offer high risk premium. For example: Earning 10% return on your investment clearly means 1.5% risk premium p.a. Earning 1.5% risk premium is not a very impressive thing as it’s very easy to get. You can invest in balanced mutual fund, Fixed Deposit Plans from bank and more for gaining 1.5% risk premium as these are considered safe investment options.

What if your return expectation is 12%p.a? In this case the desired risk premium would be 11.5% p.a. In the investment industry risk premium of 11.5% is something highly lucrative because not all financial organizations are capable of paying it to its clients. In short term such a high rate of risk premium is hardly of any significance. However, in the long run earning risk premium of 11.5% can help your money grow voraciously.

Hence, it’s very important that you consider the high return formula before taking an investment plan. Breaking a higher return investment plan into 2 parts is necessary. One part will stand for risk free rate and another part for risk premium. You can find out Risk free rate very easily by surfing the internet. Before expecting high returns, you must be clear on how much risk premium is expected by you over risk free rate. Calculating this way will always help you choose the best higher return producing investment plan available in the market.

However, in order to make expectations a reality, selection of right investment options is also essential. Select a good Fixed Deposit Plan from a Non-Banking Financial Company for 2-5 years. This way you can earn high risk premium while staying invested for long-term.