10 Safest Investment Options with very high Liquidity (2024)

Recent systemic failure of big banks of United States of America, India Switzerland and banks of many other countries like Signature Bank, Silicon Valley Bank (SVB Bank), Silvergate Bank, Credit Swiss, Yes Bank etc. indicating that there is need to have alternative saving & investment options to safeguardyour hard earn money. So, we all should have knowledge of all other alternative options to save and invest money.

Here is the list of 10 safest investment options with very high liquidity where you can save and invest your hard earned money. These investment options also have very high level of liquidity so you can withdraw your money as and when you need it.

1. Fixed Deposits (FD)

Fixed deposit in banks is safe investment option but FD should be in very stable and big bank.FD investment in bank is insured up to some fixed amount, so do FD up-to that amount only to safeguardfrom any bank failure.

Also, do bank FD only when the return of bank FD is greater than inflation rate. If the rate of inflation is greater than FD then there is no sense of doing FD.

Benefits of investing in a Bank Fixed Deposit

There are several benefits of investing in a Bank Fixed Deposit (FD). Here are some of the key benefits:

Guaranteed returns: One of the biggest advantages of investing in a Bank FD is the guaranteed returns. Unlike other investments that are subject to market risks, the returns on a Bank FD are fixed and assured, so you know exactly how much you will earn at the end of the tenure.

Low-risk investment: Bank FDs are considered to be a low-risk investment as they are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to a limit of Rs. 5 lakhs per depositor per bank. This makes them a safe and secure investment option.

Flexible tenures: Bank FDs offer flexible tenures ranging from a few days to several years, allowing investors to choose a tenure that suits their investment needs and financial goals.

High liquidity: While Bank FDs are a fixed-term investment, most banks offer premature withdrawal facilities in case of emergencies. However, the bank may levy a penalty for early withdrawal.

Regular income: Bank FDs can also provide a regular source of income in the form of interest payouts, which can be useful for retirees or those looking for a steady income stream.

Overall, Bank FDs can be a good investment option for those looking for a low-risk, fixed-income investment that offers guaranteed returns and high liquidity. However, investors should also consider other investment options based on their financial goals, risk appetite, and investment horizon.

How to invest in a Bank Fixed Deposit

How to do Bank FD? Here are the steps to invest in a Bank Fixed Deposit (FD):

Choose a bank: The first step is to choose a bank where you want to invest your money. Consider factors like interest rates, safety, and reputation of the bank before making a decision.

Check theinterest rates: Once you have selected the bank, check the current interest rates offered on FDs. Different banks offer different rates, so compare the rates offered by various banks to get the best deal.

Decidethe tenure: Determine the tenure of the FD you want to invest in. Banks usually offer flexible tenures ranging from a few days to several years.

Calculate the interest and returns: Use an FD calculator to calculate the expected interest and returns on your investment based on the interest rate and tenure.

Open an account: If you are an existing customer of the bank, you can open an FD account online or visit the branch and fill out the necessary forms. If you are a new customer, you will need to open a savings account first before opening an FD account.

Deposit the funds: Deposit the funds in the FD account either online or at the bank branch. The bank will issue a receipt confirming your investment.

Monitor the FD: Monitor the FD and keep track of the maturity date. You can choose to reinvest the money or withdraw the principal amount and interest once the FD matures.

Investing in a Bank FD is a simple and hassle-free process. You can also renew the FD automatically or manually, depending on your preferences.

2. Treasury Bill (T-Bill)

Treasury Bill (T-Bill) are also very safe investment option.A Treasury Bill, also known as T-Bill, is a short-term debt security issued by the government of a country, usually with a maturity of less than one year. These securities are sold at a discount to their face value, and the difference between the purchase price and the face value is the investor's return.

Treasury Bills are considered to be very low-risk investments, as they are backed by the full faith and credit of the government. They are also highly liquid, as they can be easily bought and sold on the secondary market.

In the United States, Treasury Bills are issued by the U.S. Department of the Treasury and are typically sold in denominations of $1,000 or more. They are often used by investors as a safe place to park cash, as well as by the government to finance short-term expenses.

In India, Treasury Bills are also issued by the government and are considered to be one of the safest forms of investment. The Reserve Bank of India (RBI) issues three types of Treasury Bills with maturities of 91 days, 182 days, and 364 days.

Similar to the United States, Treasury Bills in India are sold at a discount to their face value, and the difference between the purchase price and the face value is the investor's return. These bills are issued through auctions held by the RBI, and investors can participate in these auctions through authorized entities such as banks, primary dealers, and other financial institutions.

Benefits of investing in T-Bills

There are several benefits of investing in Treasury Bills (T-Bills), which include:

Low-risk investment: T-Bills are considered to be one of the safest investment options, as they are issued and backed by the government. They are free from credit risk, as the government has a strong credit rating and is considered to be one of the most reliable borrowers.
Guaranteed returns: T-Bills offer a fixed rate of return, which is determined at the time of purchase. The rate is generally higher than savings accounts and can provide a higher return than some other short-term investment options.
Short-term investment: T-Bills have a maturity period of less than a year, typically 91 days, 182 days, or 364 days, making them a good option for investors who want to park their funds for a short period of time.
High liquidity: T-Bills are highly liquid and can be easily bought and sold on the secondary market, providing investors with quick access to their funds.
Tax benefits: In some countries, T-Bills are exempt from state and local taxes, making them a tax-efficient investment option.
Diversification: Investing in T-Bills can be a good way to diversify your investment portfolio and reduce risk.

Overall, T-Bills can be a good investment option for those looking for a low-risk, short-term investment with guaranteed returns and high liquidity. However, investors should also consider other investment options based on their financial goals, risk appetite, and investment horizon.

How to invest in T-Bills in India:

Investing in Treasury Bills (T-Bills) in India is easy and can be done through a few simple steps:

Open a Demat account: The first step to investing in T-Bills is to open a Demat account with a registered Depository Participant (DP) in India. Open Demat account with Zerodha to start investing.
Register for the auction: Once you have opened a Demat account, you can register for the T-Bill auction through the Reserve Bank of India's (RBI) website. You will need to provide your bank details and PAN card information to complete the registration process.
Bid forT-Bills: After registering, you can place your bid for the T-Bill auction through your DP or your bank. The minimum amount that can be invested in T-Bills is usually Rs. 25,000.
Wait for theresults: After the auction closes, the RBI will announce the results and allocate T-Bills to successful bidders.
Hold or sell the T-Bills: You can choose to hold the T-Bills until maturity or sell them on the secondary market if you need liquidity.

It is important to note that T-Bills are issued through an auction process, and the interest rate is determined by market demand and supply. The interest rate can fluctuate depending on market conditions, so it is important to keep track of market trends before investing. Also, investing in T-Bills involves market risk and there is no guarantee of returns. Therefore, it is advisable to consult a financial advisor before investing.

How to invest in United States of America T-Bills

Investing in Treasury Bills (T-bills) in the USA is relatively straightforward and can be done through the following steps:

Open a TreasuryDirect account: The first step is to open a Treasury Direct account with the U.S. Department of the Treasury. This is an online account that allows investors to buy and sell T-bills directly from the Treasury.
Fund your account: Once you have opened a Treasury Direct account, you will need to fund it using your bank account. This can be done through an electronic funds transfer or by mailing a check to the Treasury.
Choose the T-bill you want to invest in: Once your account is funded, you can log in to your Treasury Direct account and choose the T-bill you want to invest in. T-bills are issued with maturities of 4, 8, 13, 26, or 52 weeks.
Place your order: Once you have selected the T-bill you want to invest in, you can place your order by indicating the amount you want to invest and the maturity date of the T-bill.
Wait for settlement: After you have placed your order, you will need to wait for settlement. Settlement occurs on the auction date, which is usually two days after the auction.
Hold or sell the T-bill: Once the T-bill is settled, you can choose to hold it until maturity or sell it on the secondary market if you need liquidity.

It is important to note that T-bills are considered to be one of the safest investment options, as they are backed by the U.S. government. However, they do carry some risks, such as inflation risk and interest rate risk. Therefore, it is important to carefully consider your investment goals and consult with a financial advisor before investing in T-bills or any other investment option

3. Corporate FD

A Corporate Fixed Deposit (FD) is a financial product offered by corporations or companies to investors, where the investor can invest a fixed amount of money for a fixed period of time at a predetermined interest rate. The interest rate offered by the company is usually higher than the interest rate offered by banks on regular Fixed Deposits.

Here are some key features of Corporate FD:

Higher returns: Corporate FDs generally offer higher interest rates than bank FDs, making them an attractive investment option for those seeking higher returns.
Fixed tenure: Corporate FDs have a fixed tenure, ranging from a few months to a few years. Investors can choose the tenure as per their investment goals and financial objectives.
Fixed interest rate: The interest rate offered by the company is fixed at the time of investment and remains the same throughout the tenure of the FD.
Credit rating: The credit rating of the company offering the FD is an important consideration, as it indicates the company's ability to repay the principal and interest on the FD. Investors should carefully review the credit rating of the company before investing.
Higher risk: Corporate FDs are riskier than bank FDs, as they are not insured by the government. There is a possibility of the company defaulting on the payment of principal and interest, especially in the case of companies with lower credit ratings.
Lack of liquidity: Corporate FDs generally have a lock-in period, and premature withdrawals may attract a penalty. Therefore, investors should carefully consider their liquidity requirements before investing in a corporate FD.

Overall, corporate FDs can be a good investment option for those seeking higher returns than bank FDs. However, investors should carefully evaluate the credit rating of the company and assess the risk associated with the investment before investing in a corporate FD.

How to invest in Corporate FD

To invest in a Corporate Fixed Deposit (FD), follow these steps:

Identify the companies offering Corporate FDs: You can search for companies offering Corporate FDs online or through advertisem*nts in financial newspapers and magazines.
Evaluate the credit rating of the company: The credit rating of the company offering the Corporate FD is an important consideration. You can check the credit rating of the company from credit rating agencies such as CRISIL, ICRA, and CARE.
Check the interest rates: Compare the interest rates offered by different companies offering Corporate FDs. The interest rates may vary depending on the tenure of the FD and the credit rating of the company.
Check the tenure: The tenure of the Corporate FD may range from a few months to a few years. Choose the tenure that aligns with your investment goals and financial objectives.
Fill up the application form: Once you have identified the company offering the Corporate FD, you need to fill up the application form. The application form may be available online or at the company's office.
Submit the required documents: You may need to submit certain documents such as identity proof, address proof, and PAN card along with the application form.
Invest the money: After the company verifies your application and documents, you can invest the money in the Corporate FD.
Receive the interest and principal at maturity: The interest on the Corporate FD is usually paid out periodically or at the time of maturity. The principal is also repaid at the time of maturity.

It is important to note that Corporate FDs carry higher risks than bank FDs. Therefore, you should carefully evaluate the credit rating of the company and assess the risks before investing in a Corporate FD. You should also read the terms and conditions of the FD carefully and understand the penalties associated with premature withdrawals

4. Corporate Bond

A corporate bond is a debt security issued by a corporation to raise funds from investors. In exchange for investing in the bond, the investor receives regular interest payments and the principal amount is repaid at maturity. Corporate bonds are typically issued by companies with a strong credit rating, but can also be issued by companies with a lower credit rating that are willing to pay a higher interest rate to attract investors.

Here are some key features of corporate bonds:

Fixed interest rate: The interest rate on a corporate bond is fixed at the time of issuance and remains the same throughout the life of the bond.

Maturity: Corporate bonds have a fixed maturity date, which is the date when the principal amount is repaid to the investor.
Credit rating: The credit rating of the company issuing the bond is an important consideration, as it indicates the company's ability to repay the principal and interest on the bond. Companies with a higher credit rating are considered less risky and may offer lower interest rates, while companies with a lower credit rating are considered more risky and may offer higher interest rates.
Higher yields: Corporate bonds generally offer higher yields than government bonds or bank deposits, but carry higher risk.
Secondary market: Corporate bonds can be bought and sold in the secondary market, allowing investors to sell their bonds before maturity if they need to raise funds or want to take profits.

Investing in corporate bonds can provide investors with a steady stream of income in the form of regular interest payments, as well as potential capital appreciation if the bond's value increases in the secondary market.

However, investing in corporate bonds also carries risks, including the risk of default by the issuing company and the risk of interest rate fluctuations. Investors should carefully evaluate the credit rating of the issuing company and assess the risks before investing in a corporate bond.

How to invest in Corporate Bond

Investing in corporate bonds can provide investors with a steady stream of income in the form of regular interest payments. Here are the steps to invest in corporate bonds:

Research: The first step in investing in corporate bonds is to research and identify the bonds that align with your investment goals and financial objectives. You can research corporate bonds through financial news, online sources, and brokerages.
Evaluate credit rating: It is important to evaluate the credit rating of the issuing company before investing in corporate bonds. Companies with a higher credit rating are considered less risky and may offer lower interest rates, while companies with a lower credit rating are considered more risky and may offer higher interest rates.
Choose a broker: You can invest in corporate bonds through a brokerage firm. Choose a brokerage that provides access to corporate bonds and has a good reputation in the market.
Place the order: Once you have identified the bonds you want to invest in, place an order through your brokerage. You will need to provide information such as the quantity of bonds you want to purchase and the price you are willing to pay.
Settle the trade: Once the order is executed, the trade will need to be settled. Settlement refers to the exchange of money for the bonds. The settlement process is typically completed within a few days of the trade.
Hold the bonds: After settling the trade, you will receive the corporate bonds in your account. Hold the bonds until maturity or sell them in the secondary market if you want to exit your position.

It is important to note that investing in corporate bonds carries risks, including the risk of default by the issuing company and the risk of interest rate fluctuations. You should carefully evaluate the credit rating of the issuing company and assess the risks before investing in corporate bonds.

5. Gold as Investment option

Gold is a precious metal that has been highly valued throughout history as a store of value and a medium of exchange. It is widely used in jewelry, coins, and bars, and is also used in various industries, such as electronics and aerospace.

Here are some key features of gold:

Limited supply: Gold is a finite resource, which means that the supply is limited. This gives it inherent value, as demand for gold can exceed its available supply.
Durable: Gold is highly durable and does not corrode or tarnish, making it a good store of value.
Liquidity: Gold can be easily bought and sold, making it a liquid asset.
Hedge against inflation: Gold is often used as a hedge against inflation, as its value tends to rise in times of economic uncertainty or inflation.
Investment: Gold can be bought and held as an investment, either in physical form or through financial instruments such as exchange-traded funds (ETFs) and mutual funds.

Investing in gold can provide diversification in a portfolio and may act as a hedge against inflation or economic uncertainty. However, gold also carries risks, including price volatility, potential for theft or loss, and the possibility of a decline in demand. Investors should carefully consider the risks and potential benefits before investing in gold.

How to invest in Gold

There are several ways to invest in gold, depending on your preferences and investment goals:

Physical gold: This involves purchasing gold coins or bars from a dealer or a bank. Physical gold can be stored at home, in a safety deposit box, or in a specialized storage facility. However, physical gold can be costly to purchase and store, and it may not be very liquid when you want to sell it.
Gold exchange-traded funds (ETFs): Gold ETFs are investment funds that hold physical gold and trade on stock exchanges. They offer an easy and convenient way to invest in gold without the need for storage. Gold ETFs can be bought and sold like stocks, and their value is tied to the price of gold. However, ETFs come with management fees and may not offer the same level of security as physical gold. Buy Gold ETFs from secondary market.
Gold futures and options: Gold futures and options are financial contracts that allow investors to buy or sell gold at a specified price on a future date. These instruments are traded on commodity exchanges and can be used to hedge against price fluctuations in gold. However, futures and options are complex financial instruments that require a high level of expertise.
Gold mining stocks: Investing in gold mining companies is another way to gain exposure to the gold market. These companies are involved in the exploration, development, and production of gold, and their share prices are influenced by the price of gold. However, gold mining stocks are subject to company-specific risks, such as operational and regulatory risks.

When investing in gold, it's important to keep in mind that gold prices can be volatile and influenced by a range of factors, such as geopolitical events, economic data, and currency fluctuations. Investors should carefully evaluate their investment goals, risk tolerance, and investment horizon before investing in gold.

Best option of investing in gold as investment option is investing in SGBs. So, we will learn about it more deeply-

Sovereign Gold Bonds (SGBs)

Sovereign gold bonds (SGBs) are a type of government security denominated in grams of gold. They are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. The bonds are an alternative to physical gold and provide investors with a way to invest in gold without the hassle of storing physical gold.

Here are some key features of sovereign gold bonds:

Denomination: SGBs are denominated in grams of gold, with a minimum investment of one gram and a maximum of four kilograms per investor.
Tenure: The tenure of the bond is eight years, with an option to exit after the fifth year. The bond can also be traded on stock exchanges.
Interest rate: The bond offers an annual interest rate of 2.50% on the invested amount, payable semi-annually.
Redemption: The bond can be redeemed in cash on maturity or can be sold on stock exchanges before maturity.
Taxation: The interest earned on the bond is taxable as per the income tax laws of India. However, capital gains arising from the sale of the bond are exempt from tax if the bond is held till maturity.

Investing in SGBs can provide investors with the benefits of investing in gold, such as diversification and a hedge against inflation, without the need for physical storage. Additionally, the interest rate offered on the bond provides an additional source of income. However, investors should be aware of the risks associated with investing in bonds, such as interest rate risk and credit risk.

6. Silveras Investment option

Silver is a precious metal that has been used for investment and industrial purposes for centuries. Investing in silver can be a good way to diversify your portfolio and hedge against inflation.

How to invest in silver

Physical silver: This involves purchasing silver coins or bars from a dealer or a bank. Physical silver can be stored at home, in a safety deposit box, or in a specialized storage facility. However, physical silver can be costly to purchase and store, and it may not be very liquid when you want to sell it.
Silver exchange-traded funds (ETFs): Silver ETFs are investment funds that hold physical silver and trade on stock exchanges. They offer an easy and convenient way to invest in silver without the need for storage. Silver ETFs can be bought and sold like stocks, and their value is tied to the price of silver. However, ETFs come with management fees and may not offer the same level of security as physical silver. You can buy silver ETFs from stock exchange with brokers like zerodha.
Silver futures and options: Silver futures and options are financial contracts that allow investors to buy or sell silver at a specified price on a future date. These instruments are traded on commodity exchanges and can be used to hedge against price fluctuations in silver. However, futures and options are complex financial instruments that require a high level of expertise.
Silver mining stocks: Investing in silver mining companies is another way to gain exposure to the silver market. These companies are involved in the exploration, development, and production of silver, and their share prices are influenced by the price of silver. However, silver mining stocks are subject to company-specific risks, such as operational and regulatory risks.

When investing in silver, it's important to keep in mind that silver prices can be volatile and influenced by a range of factors, such as geopolitical events, economic data, and currency fluctuations. Investors should carefully evaluate their investment goals, risk tolerance, and investment horizon before investing in silver

7. Indian INDEX ETFs

An Index Exchange Traded Fund (ETF) is a type of ETF that tracks a specific index, such as the Nifty 50 or the BSE Sensex in India.

Here are some popular Indian Index ETFs that investors can consider:

Nifty 50 ETF: This ETF tracks the Nifty 50 index, which represents the top 50 companies listed on the National Stock Exchange (NSE) of India. NiftyBees is nifty 50 etf.
BSE Sensex ETF: This ETF tracks the BSE Sensex index, which represents the top 30 companies listed on the Bombay Stock Exchange (BSE) of India.
Nifty Bank ETF: This ETF tracks the Nifty Bank index, which represents the performance of banking stocks listed on the NSE of India. BankBees is nifty bank etf.
Nifty Midcap 100 ETF: This ETF tracks the Nifty Midcap 100 index, which represents the performance of mid-cap companies listed on the NSE of India.
Nifty Next 50 ETF: This ETF tracks the Nifty Next 50 index, which represents the performance of the 50 companies listed after the Nifty 50 on the NSE of India.

Investing in Indian Index ETFs can provide investors with a diversified exposure to the Indian equity market with low costs and high liquidity. It is important for investors to do their due diligence, understand the risks involved, and evaluate their investment goals and risk tolerance before investing in any ETF.

How to invest in Indian Index ETFs

To invest in Indian Index ETFs, you can follow these steps:

Open a Demat Account: The first step is to open a Demat account with a registered stockbroker. The Demat account will be linked to your bank account, and it will hold your ETF units.
Choose an ETF: Decide which index ETF you want to invest in based on your investment goals and risk appetite. You can research various options and compare their expense ratios, tracking error, liquidity, and other relevant factors.
Place an Order: Once you have chosen an ETF, place a buy order through your Demat account with the stockbroker. You can buy ETF units in the same way you buy stocks, specifying the quantity and price.
Monitor your Investment: After buying the ETF units, monitor the performance of the ETF and the underlying index. You can track the ETF's NAV (Net Asset Value) and its price movements. Keep in mind that ETF prices can be volatile and influenced by a range of factors.
Sell or Hold: Depending on your investment goals, you can decide to sell your ETF units or hold them for the long term. If you sell, the proceeds will be credited to your Demat account, which you can withdraw to your linked bank account.

8. Foreign Index ETFs

Foreign Index ETFs are exchange-traded funds that invest in the stock markets of foreign countries.

Here are some popular foreign index ETFs that investors can consider:

S&P 500 ETF: This ETF tracks the S&P 500 index, which represents the top 500 companies listed on the US stock exchanges, including the New York Stock Exchange and the NASDAQ.
NASDAQ 100 ETF: This ETF tracks the NASDAQ 100 index, which represents the top 100 non-financial companies listed on the NASDAQ stock exchange.
MSCI EAFE ETF: This ETF tracks the MSCI EAFE index, which represents the performance of developed market stocks in Europe, Australasia, and the Far East.
FTSE Developed ETF: This ETF tracks the FTSE Developed index, which represents the performance of developed market stocks outside of North America.
Nikkei 225 ETF: This ETF tracks the Nikkei 225 index, which represents the performance of the top 225 companies listed on the Tokyo Stock Exchange.

Investing in foreign index ETFs can provide investors with exposure to global markets and diversification across geographies and sectors. It is important for investors to do their due diligence, understand the risks involved, and evaluate their investment goals and risk tolerance before investing in any ETF. It is recommended to consult a financial advisor before making any investment decisions.

How to invest in foreign index ETFs

To invest in foreign index ETFs, follow these steps:

Open a Brokerage Account: The first step is to open a brokerage account with a registered stockbroker that offers international trading. Check if the broker offers the foreign index ETFs you are interested in and their associated fees.
Choose an ETF: Choose the foreign index ETF that you want to invest in based on your investment goals and risk appetite. Research various options and compare their expense ratios, tracking error, liquidity, and other relevant factors.
Place an Order: Once you have chosen the foreign index ETF, place a buy order through your brokerage account with the stockbroker. You can buy ETF units in the same way you buy stocks, specifying the quantity and price.
Monitor your Investment: After buying the ETF units, monitor the performance of the ETF and the underlying index. You can track the ETF's NAV (Net Asset Value) and its price movements. Keep in mind that ETF prices can be volatile and influenced by a range of factors.
Sell or Hold: Depending on your investment goals, you can decide to sell your ETF units or hold them for the long term. If you sell, the proceeds will be credited to your brokerage account, which you can withdraw to your bank account.

It is important to do your due diligence, understand the risks involved, and evaluate your investment goals and risk tolerance before investing in any ETF. It is recommended to consult a financial advisor before making any investment decisions. Additionally, make sure to comply with all necessary regulations and tax requirements associated with investing in foreign securities.

9. House 🏡

Personal property or House which yield rental income is also considered as safest investment from long time. It gives monthly support to owner in the form of money every month (rent) and in any adverse situation you can sell your home.

A house is a physical structure that provides shelter and accommodation for individuals or families. Houses can be owned, rented or leased by individuals or businesses. Investing in a house can be a good long-term investment, as it can appreciate in value over time.

Here are some ways to invest in a house:

Buying a House: One way to invest in a house is to purchase one for personal use or as a rental property. You can obtain a mortgage from a bank or financial institution to finance the purchase. However, this option requires a substantial upfront investment, and you will also be responsible for ongoing maintenance, repairs, and property taxes.
Real Estate Mutual Funds: Real estate mutual funds invest in a portfolio of real estate stocks and REITs. This allows investors to diversify their real estate investments and access the sector with smaller amounts of capital than required for buying properties directly.
House Flipping: House flipping involves buying a distressed or undervalued property, renovating it, and then selling it for a profit. This strategy requires a strong understanding of the real estate market and significant capital investment.

It is important to consider the risks and benefits of investing in a house and to carefully evaluate your financial situation and investment goals before making any decisions. It is also recommended to seek professional advice from a financial advisor or real estate expert.

10. Real Estate Investment Trust (REIT)

A Real Estate Investment Trust (REIT) is a type of investment vehicle that allows investors to invest in income-producing real estate properties. REITs own and operate a portfolio of real estate assets, such as apartments, office buildings, warehouses, hotels, and shopping centers, and generate income from rental payments, property sales, or management fees. REITs can provide investors with a diversified and liquid investment option, as they are traded on stock exchanges like other securities.

REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. This provides investors with a regular source of income, similar to the way mutual funds or exchange-traded funds (ETFs) distribute dividends. Additionally, REITs can offer long-term capital appreciation potential, as the value of the underlying real estate properties may appreciate over time.

There are three types of REITs:

Equity REITs: Equity REITs invest in and own real estate properties that generate rental income, such as apartments, office buildings, and shopping centers.
Mortgage REITs: Mortgage REITs invest in and own real estate mortgages and other debt instruments, such as mortgage-backed securities (MBS), and earn income from the interest on these investments.
Hybrid REITs: Hybrid REITs invest in a combination of real estate properties and real estate debt instruments.

Investing in REITs can be done through brokerage firms, similar to how stocks are purchased. REITs can be bought and sold like other publicly-traded securities, providing investors with flexibility in managing their investments.

It is important to carefully evaluate your investment goals, risk tolerance, and financial situation before investing in REITs, as with any investment. It is also recommended to seek professional advice from a financial advisor or real estate expert.

How to invest in REITs

Investing in REITs is similar to investing in stocks, and can be done through brokerage firms, either online or in person.

Here are the steps to invest in REITs:

Open a brokerage account: The first step to investing in REITs is to open a brokerage account with a reputable broker. There are many online brokers that allow you to invest in REITs, such as Zerodha, INDmoney, Fidelity, Charles Schwab, and E-Trade.
Research REITs: Before investing in REITs, it is important to research the different types of REITs and their performance history. You can use financial websites and resources to learn more about REITs and evaluate their potential returns and risks.
Choose a REIT: Once you have done your research, you can select a REIT to invest in based on your investment goals and risk tolerance. You can also consult with a financial advisor or broker to help you choose a REIT that meets your investment needs.
Purchase shares: Once you have selected a REIT, you can purchase shares through your brokerage account. You can place an order to buy the shares, similar to buying any other stock. It is important to monitor your investments and make adjustments as needed based on market conditions and your investment goals.
Receive dividends: As a REIT investor, you will receive regular dividend payments from the REIT, which typically come from the rental income generated by the properties in the REIT's portfolio.

REITs in India

Real Estate Investment Trusts (REITs) were introduced in India in 2014 to provide investors with an opportunity to invest in income-producing real estate assets. REITs are regulated by the Securities and Exchange Board of India (SEBI) and are required to distribute at least 90% of their income as dividends to investors.

In India, REITs own and manage income-generating properties, such as office buildings, retail spaces, and warehouses, and generate income from rent and capital appreciation. The income generated by the REITs is then distributed to the investors in the form of dividends.

REITs currently listed on the Indian stock exchange

Here are some of the REITs currently listed on the Indian stock exchange:

Embassy Office Parks REIT
Mindspace Business Parks REIT
Brookfield India Real Estate Trust (BIRET)
Indiabulls Real Estate Investment Trust
Blackstone-backed K Raheja Corp's Mindspace REIT
Phoenix Mills REIT

REITs in USA

REITs, or Real Estate Investment Trusts, are investment vehicles that own and operate income-generating real estate properties. In the United States, REITs are a popular way for investors to gain exposure to the real estate market, without having to purchase and manage properties themselves.

REITs currently listed on the American stock exchange

Some of the largest REITs in the US, by market capitalization, include:

American Tower Corporation (AMT)
Prologis, Inc. (PLD)
Crown Castle International Corp. (CCI)
Digital Realty Trust, Inc. (DLR)
Simon Property Group, Inc. (SPG)
Equity Residential (EQR)
Ventas, Inc. (VTR)
Public Storage (PSA)
Welltower Inc. (WELL)
AvalonBay Communities, Inc. (AVB)

Hope now you understand 10 safest investment options in the market with very high liquidity. If yes, share this with your friends to help them achieving financial success in life.

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FAQs

10 Safest Investment Options with very high Liquidity? ›

Treasuries are generally considered"risk-free" since the federal government guarantees them and has never (yet) defaulted. These government bonds are often best for investors seeking a safe haven for their money, particularly during volatile market periods. They offer high liquidity due to an active secondary market.

What is the safest most liquid investment? ›

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Which investment has the highest liquidity? ›

Cash is the most liquid asset, followed by cash equivalents, which are things like money market accounts, certificates of deposit (CDs), or time deposits.

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What investment offers the greatest liquidity? ›

Treasury bills

T-bills are nearly risk-free and highly liquid, which means they are very safe places to park the cash you'll need soon.

What investment is 100% safe? ›

In its 245-year history, that government has never defaulted on a debt, making US Treasury bonds the closest thing to a risk-free investment out there. In fact, they often act as a safety comparison for other investments.

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What is the safest investment with the highest return? ›

Here are the best low-risk investments in April 2024:

High-yield savings accounts.
Money market funds.
Short-term certificates of deposit.
Series I savings bonds.
Treasury bills, notes, bonds and TIPS.
Corporate bonds.
Dividend-paying stocks.
Preferred stocks.

More items...

Apr 1, 2024

What is the safest investment for a large sum of money? ›

Investors choose safe investments when they want to protect their capital.

The Best Safe Investments of April 2024. ...
Treasury Bills, Notes and Bonds. ...
Money Market Mutual Funds. ...
Treasury Inflation-Protected Securities (TIPS) ...
High-Yield Savings Accounts. ...
Series I Savings Bonds. ...
Certificates of Deposit (CDs)

More items...

Mar 21, 2024

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How to turn 10K into passive income? ›

Passive income ideas:

Create a course.
Write an e-book.
Rental income.
Affiliate marketing.
Flip retail products.
Sell photography online.
Buy crowdfunded real estate.
Peer-to-peer lending.

More items...

Mar 27, 2024

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How to turn 10K into 100k? ›

How to Turn 10k into 100k in a Year?

Invest in stocks (try Acorns or Public now)
Start blogging (click here for the best blogging platform)
Write an email newsletter (here's my recommendation for the best email marketing software)
Start an online business (Shopify makes it easy)
Flip stuff.

More items...

Apr 10, 2024

Where is the safest place to put your retirement money? ›

The safest place to put your retirement funds is in low-risk investments and savings options with guaranteed growth. Low-risk investments and savings options include fixed annuities, savings accounts, CDs, treasury securities, and money market accounts. Of these, fixed annuities usually provide the best interest rates.

How to get 10% return on investment? ›

Investments That Can Potentially Return 10% or More

Stocks.
Real Estate.
Private Credit.
Junk Bonds.
Index Funds.
Buying a Business.
High-End Art or Other Collectables.

Sep 17, 2023

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How to turn 10K into 20K? ›

How to Turn 10K into 20K Fast?

Flip stuff.
Start a blog.
Invest in real estate with EquityMultiple.
Start an online business.
Write an email newsletter.
Help others learn with online courses and webinars.

Apr 8, 2024

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Where is the safest place to invest $100,000? ›

When it comes to the types of assets to invest in, the best way to invest 100k includes:

Cash. People often consider cash one of the safest ways to build up savings, as they aren't exposed to the ups and downs of the financial markets. ...
Stocks. ...
Property. ...
Bonds. ...
SIPPS. ...
Other investment accounts. ...
Annuities.

Apr 22, 2024

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What is the smartest way to invest $100,000? ›

Best Investments for Your $100,000

Index Funds, Mutual Funds and ETFs. If you're looking to invest, there are a lot of options. ...
Individual Company Stocks. ...
Real Estate. ...
Savings Accounts, MMAs and CDs. ...
Pay Down Your Debt. ...
Create an Emergency Fund. ...
Account for the Capital Gains Tax. ...
Employ Diversification in Your Portfolio.

Dec 14, 2023

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How to get 15% return on investment? ›

Consider investing Rs 15,000 per month for 15 years and earning 15% returns. After 15 years, the total wealth will be Rs 1,00,27,601 (Rs. 1 crore). According to the compounding principle, if we implement these very same returns and contributions for another 15 years, the amount we accumulate grows enormously.

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What is a safe liquid investment? ›

Liquid assets like money market accounts, high-yield savings accounts, and CDs are among the ways you can invest your emergency fund money so that it can grow and remain accessible.

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Are liquid funds 100% safe? ›

Liquid Funds are among the most secure mutual funds. This is because they lend to good companies for extremely short periods of time, which decreases risk. Q4.

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Which of the following investments is liquid and safe? ›

The investment which is both liquid and safe is a Treasury bill. Option B is correct. Treasury bills (T-bills) are the shortest-term government bonds, with maturities ranging from a few days to 52 weeks.

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Which investment has the least amount of risk? ›

Here are some popular low-risk investments.

Savings Accounts. Certain financial products provide more liquidity than others. ...
Certificates of Deposit (CDs) ...
Money Market Accounts. ...
Bonds.

Jan 15, 2022

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