Stock markets are consolidating at all time high and experts believe that a break out from this level is likely.

Global as well as local economic situations will largely decide market movements from this position.

It is high time for investors to review their investments and book part profit, cut losses or rebalance asset allocation from equity to debt instruments. Small investors are advised to book part of their hard earned profit from equities. This is more important for senior investors close to their retirement. However, many small investors wonder how to secure their profit and earn decent return from it.

Here are some ways to secure your profits from investments.

Robust stock market and tightening of monetary policy has resulted in rise of interest rate. This has made investment in debt instruments a lucrative proposition to preserve capital.

Bank deposit is one such instrument. There are several benefits of investing in fixed deposits of banks. Preservation of capital, regular accumulation of interest and easy liquidation of deposits are some of them. Investors may consider bank deposits for short term.

Debt funds are also good for securing profit. Risk- averse investors may consider these funds that invest in government bonds and debt based funds. Protection of capital and decent return are main attractions of investing in these funds.

Such funds can be easily liquidated because they don’t have any lock-in period. People looking to secure their investments over medium to short term may consider this risk free investment option.

Liquid funds, investing mainly in money market instruments like corporate and treasury deposits are favored by many investors for short term. Withdrawal from these funds is easy and may be done on very short notice. Depending on the tax bracket an individual belongs, interest from bank fixed deposits may be taxable income. However, dividends from liquid funds are tax free for the investor.

Investing in gold and silver is another popular choice. Introduction of Exchange Traded Funds (ETF) like Gold ETF have added a new dimension to investing in gold. This has been considered as safe, liquid, systematic, sensible and affordable option of investing in gold.