Shafiqul Islam, an expatriate in the United Arab Emirates, is one such investor. Although he built up a fund of nearly Tk 10 lakh by depositing money in an insurance company for over a decade, he has been unable to withdraw that money for five years. After this experience, he believes that if he had invested that money in gold or savings certificates, it would have been safer.
According to economists, there is no 100% risk-free sector for investment. However, considering goals, time, and risk tolerance, some sectors are considered relatively safe.
Gold: A safe asset in times of uncertainty
According to experts, gold is one of the most reliable assets during economic instability, inflation, or currency devaluation.
According to the Bangladesh Jewellers Association, in 2023, the price of 22-carat gold exceeded Tk 1 lakh per bhori for the first time. Currently, the price of one bhori of 22-carat gold, including VAT, is about Tk 2 lakh 25 thousand.
According to industry insiders, it is more suitable to buy 24-carat pure gold bars or coins instead of jewelry for investment purposes. However, gold does not provide any regular income, and there is a risk of market price fluctuations.
Savings Certificates: Benefit of government guarantee
According to economists, savings certificates hold a strong position as a relatively safe investment medium after gold.
The government guarantees the return of the principal along with profit on savings certificates. Additionally, tax rebate benefits are available within certain limits. However, some benefits may be forfeited if cashed before maturity.
Currently, Family Savings Certificates and Pension Savings Certificates are among the most popular investment instruments.
Land and Housing: Long-term investment
Experts believe that the price of land and housing in Bangladesh generally trends upward in the long term.
However, before investing in this sector, it is essential to verify ownership, legal complexities, communication systems, future development plans, and land usability. At the same time, being a relatively illiquid asset, it may be difficult to sell quickly in an emergency.
Fixed Deposits: Checking bank's capability is crucial
Economists have advised checking the financial capability and reputation of the concerned bank before investing in fixed deposits or time deposits.
According to them, one should not keep money in weak financial institutions just for higher profits, as the money may not be returned on time.
Government Bonds: Low-risk investment
Government bonds are also considered relatively safe investments. The government issues these bonds with various maturities and pays profit at regular intervals.
According to experts, government bonds can be an effective alternative for those with long-term investment plans.
Caution regarding the stock market and insurance
According to economists, there is still a lack of transparency and good governance in Bangladesh's stock market. Investing in this sector without adequate knowledge can be risky.
Similarly, there are various complaints regarding customer service and claim settlement in the insurance sector. Therefore, they have advised not to invest without thoroughly checking the institution and terms and conditions.
Experts' advice
According to economists, the most effective strategy for investment is to diversify across different sectors rather than relying on a single medium. Additionally, they have advised refraining from investments that involve the lure of abnormal profits, unregulated institutions, and those made without proper verification.
In their words, there is no absolute concept of safe investment. Decisions should be made considering an individual's financial goals, risk tolerance, and investment timeframe.
