The Sensex and the Nifty have lost ground again today, following a missile air strike by Iran on US bases in Iraq. In fact, on Monday we saw a massive crash of 231 points on the Nifty. Here are 5 investments to bet on, when markets are crashing.
SBI Gold ETF
SBI Gold ETF has given a return of 27.58 per cent in the last one year. This is an exceptional return and beats any asset class. We recommend Gold ETFs as a bet against difficult times, especially geo-political tensions. It's an excellent means to diversify.
Gold ETFs can be bought exactly in the same manner as you buy shares. You need to have a demat account to buy and sell shares and similarly for this instrument. As and when prices of gold goes up, so does the price of Gold ETFs. Being in the electronic form, they can be easily bought and sold.
UTI Gold ETF
This is another excellent investment to buy, when markets around are crashing. The UTI Gold ETF has given returns of nearly 26 per cent in the last one year.
It is advisable to park at least 10 per cent of your money in gold. Considering the same, UTI Gold ETFs are a good bet, as you do not have to worry like physical gold, where they can be stolen.
The last one year return and year to date returns has been exceptional. However, there is no guarantee that the stupendous returns might continue.
Safe NBFC Fds like Bajaj Finance and Mahindra Finance
One can also look at very safe NBFC Fds like Bajaj Finance and Mahindra Fds, which offer an interest rate around that 8.30 per cent mark.
Both these Fds are AAA rated and offer good returns, when compared to most bank deposits. They are also very safe, as they come from strong set of promoters.
Post office time deposits
Post office time deposits too are not a bad at all. They offer a very decent interest rate of 7.7 per cent. This is way higher than bank deposits and is extremely safe, as they are backed by the government.
At a time when stock markets are plagued with uncertainty, the above is a good investment.
National Savings Certificates is a 5 year scheme, which offers an interest rate of 7.9 per cent. Rs 100 invested in this scheme grows to Rs 146.25, after 5 years. One important thing to note with the NSC is that it offers tax benefit under Sec80C of the Income Tax Act.