We all have different perceptions for the same investment opportunity owing to our different mechanism of thinking and processing information. These very perceptions make us unique and special in our own ways. Some people have the courage to take a lot of risk because they are looking to make higher returns while others may have a more conservative approach and invest in financial securities with lower risk knowing that they will earn a lower return.
Prize Bonds are a safe haven for most people when it comes to investing. This is because of the several attractive features it offers that caters to the appetite of both the risk takers and risk averse individuals.
The most common features are:
1. Simple procedure
It is relatively easy to invest in a Prize Bond. All you have to do is submit its form with complete details and you will get the ownership of the bond. Also, these bonds are available in both the primary and the secondary market which makes them more easily accessible.
2. Less costly mode of Investment
There are no additional charges apart from the money that will be used to buy the Prize Bond. Prize Bonds are available for as low as Rs. 100 and as per your cash flows, you can very conveniently device your own suitable investment scheme as well.
3. Security of Amount invested
The amount that is invested in a Prize bond remains secure even if you do not win any prize. If you withdraw your investment at any point in time, you will get the same amount as initially invested.
4. Liquid investment
Prize Bonds can be converted into cash very quickly. This is one of the best features as compared to any other mode of investment as there is no lengthy procedure for withdrawing your investment, especially in case of emergencies.
5. High rate of return
As previously mentioned, high risk mostly results in high returns or vice versa. However, with Prize Bonds, depending on your level of investment and of course, your luck, you can earn big gains for a very nominal amount- initially invested.
6. Can be used a s a collateral
Prize Bonds can be used as a collateral against loan as well. A collateral is used in cases where the borrower defaults and the only way for the lender to recover money is by selling the collateral and using the proceeds to write off the account.