Searching for investment options offering equity returns at lower risk? See below!

Last Updated On: Feb. 9, 2020, 3:21 p.m.

We all want to invest in venture which gives us higher returns but same time without minimum risk of principal investment. So, we all search for where we can invest so that our money multiplies in short possible time. Following are 3 of those ventures which offer low risk equity investment options.


Unit linked insurance plans are the long term market linked plans that offers benefits of both investment and protection. It provides the opportunity of growth with the benefit of tax deduction as well. Income from UILPS is 100% tax free irrespective of short term or long term gains. Hence, it has advantage over mutual funds.

Now-a-days, to compete with cost structure of mutual funds, the cost structure of UILPS is rationalized to make it less costly, this is likely to attract more investors. They focus on risk minimization & capital preservation. They are most useful for wealth creation & long term goals such as dream home, child education etc. 

Equity Linked Saving Scheme Funds:

Equity linked saving scheme funds have high growth potential with 3 year lock in period. Some growth potential has been taken away by introduction of 10% of tax on LTCG beyond Rs. 1 Lac but emerged as best investment option for salaried class. According to associated risks, it can be divided into 3 categories:

• Turbo charged: These funds are both very risky and very rewarding with small caps account for over 10% of their portfolios.

• Moderately aggressive: These funds expect good growth but only in case of calculated risks. Here, more than 25% of their corpus is in between mid and small cap stocks.

• Stable growth: These funds are less volatile and have more than 75% of corpus in large cap stocks.

They deliver high returns for long term with the leverage of controlling the investments according to your capacity of taking risk offering an attractive investment opportunity.

Equity Mutual Funds:

Equity mutual funds invest primarily in stock markets with an aim to get higher returns. An investment option which offers the option to the investor to diversify the capital across various assets & liabilities wherein the investors pool equity & share returns accordingly.

One must invest in large cap equity mutual funds if want to have market exposure as it generally offers stable returns. Another reason to invest in Mutual funds is if you are well versed with the market then you can gain high returns with lesser risk by investing in diversified equity funds.

To conclude it can be said that these investment options reduce your risk & ensures less volatile investment returns. To maximize your return it is generally advisable to invest in long term ventures as they help in keep your capital & return safe from high volatilities in market resulting in higher gain.



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