10 Best Safe Investments With High Returns Plans In October 2022
Since October 2018, the stock market has been in decline. It’s not surprising, as this type of economic downturn was predicted by most economists over the past decade and discussed in popular media outlets regularly.
The good news is that while stocks are currently at their lowest point since 2029, they have historically risen back up to their former levels within several months or weeks of starting to go down.
Based on historical trends and expert opinions, these are the ten best safe investments with high returns in October 2022.
1) Treasury Inflation-Protected Securities
Treasury Inflation-Protected Securities, also known as TIPS, are a great way to hedge against inflation while still earning a solid return on your investment.
TIPS are issued by the U.S. government and backed by its full faith and credit. The principle of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index.
TIPS also offers a fixed rate of interest that is paid semi-annually.
When TIPS mature, you are paid the adjusted principal or original principal, whichever is greater.
- Treasury Inflation-Protected Securities (TIPS) are government bonds that offer protection against inflation.
- The principle of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index.
- TIPS pays interest every six months, and the interest payments are adjusted for inflation or deflation.
- When TIPS mature, you are paid the adjusted principal or original principal, whichever is greater.
- TIPS are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.
- TIPS can be purchased through TreasuryDirect, brokerages, and some banks.
2) Buy real estate
October is a great month to buy real estate. The weather is cooling down, making it the perfect time to invest in a new home.
Real estate is a solid investment that will appreciate over time, providing you with a nest egg for the future.
With interest rates at an all-time low, now is the perfect time to buy. Look for a property that needs work and hire a contractor to do some renovations.
These projects usually have inexpensive land and homes because the owner doesn’t want to pay someone else to do their work.
Once your contractor is done renovating your property, you’ll have something worth more than what you paid for it!
Find something affordable but well maintained, so you don’t lose money on renovations or taxes when buying your next property.
You’ll also need something near public transportation or other necessary services to avoid wasting gas driving daily.
When you’re ready to move on, you could live inside it, rent this out, or sell this. Unlike stocks or bonds, it is indeed a tangible asset that you can see and touch.
Real estate gives you greater control than other sorts of investing. Real estate is a fairly secure investment.
It has the potential to appreciate over time. You can generate income from rent payments if you choose to rent out your property.
Real estate is a tangible asset that you can sell for cash if you need.
3) Certificates of Deposit
The certificate of deposit is indeed a form of savings account that generally pays a better interest rate in exchange than consent to keep your money deposited for a specified amount of time.
C.D.s are considered safe because they are FDIC insured and offer a low-risk investment option.
Ally Bank: 2.05% APY, 20-month term Capital One: 2.50% APY, 18-month term.
CIT Bank: 2.75% APY, 19-month term. Discover Bank: 2.90% APY, 18-month period.
Home Savings: 3.00% APY, 18-month term. M&T Bank: 3.25% APY, 21-month period.
First Republic Bank: 3.30% APY, 17-month term. Marcus by Goldman Sachs -3.35%APY, 17-month period. UFB Direct -3.40%APY, 17-month term.
- When you want a safe investment with such a higher return than with a regular savings account, the Certificate of Deposit (CD) may have been the best option.
- C.D.s are offered by banks and credit unions and are FDIC-insured for up to $250,000.
- When you open a CD, you agree to leave your money on deposit for a set period, usually six months to five years.
- By exchange, the bank promises to pay you a fixed interest rate.
4) Refinance your mortgage
Rates are still low, so if you have a higher interest rate, now is a great time to refinance and save monthly money.
You can also look into refinancing to a shorter loan term. This will increase your monthly payments, but you’ll pay off your mortgage faster and save on interest in the long run.
Another option is to refinance and take cash out of your equity. This can be used for home improvements, debt consolidation, or other significant expenses.
If you’re considering refinancing, compare rates and terms from multiple lenders to get the best deal.
- Lower your monthly payments: When you refinance your mortgage, you can lower your monthly payments.
- This will free up some extra cash each month that you can use to pay off debt or save for other financial goals.
- Reduce your interest rate. A lower interest rate is amongst the most prevalent reasons for refinancing a mortgage.
- The decrease in interest rate means you’ll pay less interest throughout the life of your loan, potentially saving you thousands of dollars.
- Paid off your loan as soon as possible. You can pay off your mortgage faster if you refinance to a shorter loan term.
5) HDFC Index Fund
HDFC Index Fund was created on October 1, 2022. The fund is designed to track the BSE SENSEX’s performance, made up of the 30 most important and liquid stocks traded on the Bombay Stock Exchange
This fund does have a 0.15 percent cost ratio and a minimum investment of Rs. 5,000.
HDFC Index Fund is an excellent choice for investors looking for a safe investment with high returns.
With an expense ratio of only 0.15%, it outperforms many other funds in this category.
- HDFC Index Fund is an equity mutual fund that aims to provide long-term capital growth by tracking the performance of the BSE Sensex.
- The fund invests in large-cap stocks that are leaders in their respective industries and have a strong track record of growth.
- HDFC Index Fund is a diversified fund exposed to banking, financial services, automobiles, FMCG, and healthcare sectors.
- This fund has a 0.5 percent cost ratio and has returned 14 percent since its launch in 2006.
- This fund is appropriate for investors with such a 5-year or longer investment horizon.
6) SBI Balanced Fund
SBI Balanced Fund is one of the best mutual funds to invest in India. The scheme was launched on January 30, 2007, and has been completed ten years since January 2017.
SBI Funds Management Pvt manages the fund. Ltd. That invests in a diverse mix of equities and debt securities in order to deliver capital appreciation and income distribution.
It invests primarily in shares listed on the Indian stock exchanges and bonds or debentures issued by companies incorporated or established outside India but operating mainly within the country.
- SBI Balanced Fund is an equity-linked mutual fund scheme.
- The project’s objective is to generate long-term capital appreciation from a portfolio substantially invested in equity and equity-related instruments while ensuring reasonable safety and liquidity of investments.
- The scheme invests in large-cap, mid-cap, and small-cap stocks.
- This diversified portfolio helps to reduce the overall risk while still providing the opportunity for high returns.
- The fund has a 5-year track record of outperforming its benchmark index, the Nifty 500.
- The fund has consistently generated over 15% per annum over the last five years.
7) Corporate Bonds
Corporate bonds are one of the safest investments out there. They are also one of the best performing asset classes, returning an average of 7% per year over the last decade.
Corporate bonds are a great option if you’re looking for a safe investment with high returns.
For example, Bank of America offers 4-year corporate bonds with a return of 5%.
You’ll have to be willing to commit your money for four years. Still, it’s well worth it, considering this is one of the highest-yielding corporate bond opportunities available today.
- Corporate bonds are among the most popular bonds issued by private and public companies.
- They are typically used to finance long-term projects, such as expansion or new construction.
- Because large, established companies issue them, so they are considered relatively safe investments.
- And, because they are often used to finance projects with a long time horizon, they tend to offer higher returns than other types of bonds.
8) Invest in peer-to-peer lending platforms
In recent years, peer-to-peer lending platforms have become a popular investment option for individuals looking to get higher returns than traditional savings accounts.
Beginning investors may wish to start modest and invest $1,000 or less if they are seeking for a safe investment with the potential for significant returns.
More experienced investors might be able to put up more funds if they want.
Investors should also research each company’s terms and conditions and credit history requirements before opening an account at any of these sites.
- With P2P lending, you can earn higher returns than traditional fixed-income investments.
- P2P lending platforms are relatively new, so that they may be less risky than other types of investments.
- You can invest in loans backed by collateral, reducing your risk.
- Most P2P lending platforms allow you to spread your investment across multiple loans, which can also help reduce your risk.
- You can typically withdraw your money at any time, although fees may be involved.
- You may be able to choose the loan term length, which can give you some control over how much interest you earn.
9) Dividend Stocks
Dividend stocks have been among the most secure and dependable investments. These provide stability and income and can greatly increase the value of any portfolio.
Below are some dividend stocks to consider investing in for October 2022:
- 1. Johnson & Johnson (NYSE: JNJ) – $1.78 annual dividend yield
- 2. Procter & Gamble (NYSE: P.G.) – $3.76 annual dividend yield
- 3. Berkshire Hathaway Inc Class A shares (BRK-A) – $5,300 annual dividend yield
- 4. Coca-Cola Co New Class A shares(K.O.) – $2,636 annual dividend yield
Dividend stocks have become an excellent way to make income while also potentially losing money when you do not however know what you’re doing.
- A long history of dividend payments: You want to invest in companies that have an account of paying dividends, not just companies that have started paying dividends recently.
- That means the company has been profitable and generating cash flow from operations yearly.
- The key is determining their dividends’ reliability by looking at their payout ratio or the percentage of earnings paid out as dividends.
- Suppose a company has had consistent payouts and is currently generating cash flow from operations at a rate higher than its dividend payout rate. In that case, future payouts will likely be sustainable over time.
10) SBI Blue Chip Fund
SBI Blue Chip Fund has been one of the best-performing funds in the past year. The fund has given a return of over 28% since inception.
The fund invests in large-cap stocks and has a diversified portfolio.
The scheme is suitable for investors with a long-term investment horizon of 7-10 years. The minimum investment amount is Rs 5,000, and the exit load is nil.
- SBI Blue Chip Funds are mutual funds which invest in large-cap equities.
- The fund seeks to provide long-term capital growth by investing in a diversified portfolio of large-cap stocks.
- Over the long term, this fund has outperformed its benchmark, the Nifty 50, and its category counterparts.
- This fund is among the most cost-effective large-cap funds available today, including an expense ratio of 0.69 percent.
- This fund is suitable for investors with the use of a long investment horizon and a low risk tolerance.
If you’re seeking a safe investment with significant returns, you have several possibilities. Among other things, you can invest in equities, bonds, and mutual funds.
Therefore, keep in mind that no investment is guaranteed to make money. Before investing any money, always do your homework.