Best Ways to Invest Money in India

how to invest money

If you wonder how to invest money, you will find various options to consider. Apart from the traditional FDs with Banks and NBFCs that get you assured FD Returns, you may consider PPF, CD, Liquid Funds, and SIP. It will help if you include real estate investment in your portfolio. It entitles you to capital and revenue gains alike. You also qualify for a tax rebate for the interest you will pay toward the Home loan. In addition, you may consider SIP investment that will entitle you to start investments with the minimum monthly contribution. If you withdraw your SIP after 3 years from the deposit, you will be eligible for tax exemption. 

Financial Endowment is meant only for those who are into regular savings and investments. For generations, for its ability to shield the capital and the FD Returns fetching significant returns, Fixed Deposit has been the top choice for Indians regarding savings and investments as it produces significant assured FD Returns. However, there are ample other investment tools to consider while you wonder how to invest money. A few of these investment tools can produce significantly higher returns than FDs, though the risk involved is much higher. Therefore, you need to be considerate in selecting your investment tools. 

Don’t miss the Public Provident Fund. 

 The Public Provident Fund is the foremost option to consider if you plan to invest money. If you are not eligible for EPF benefits, you should compulsorily get this coverage as early as possible. It is suitable for long-term investment, as you need to lock in the fund for 15 years. Here the interest earned is computed on a cumulative basis, and on completing the initial tenure, you will get the corpus with the capital and the interest earned. It is a secured investment, and you are eligible for tax exemption for the interest earned. For years, PPF has been the highest-yielding investment in the category of risk-free speculations.

It is wise to consider Corporate FDs. 

A Corporate Deposit is the best mid-term investment if you want a higher yield than the conventional FDs at a lesser risk than investments in stock and mutual funds. Here the investment tenure can go 5 years, and you qualify for cumulative earning at a rate depending on the investment value. Besides the fixed return, you can even earn a portion of the company’s profit. You may consider premature withdrawal or avail loan on pledging the CD certificate with banks and NBFCs. You may approach Bajaj Finserve to avail of such loans hassle-free. 

It will be wise to try the liquid fund. 

Liquid funds are investments that you can consider for short-term lock-in. You can put the additional cash in these funds and keep earning returns till you keep the fund invested. It is a worthy alternative to the FDs in the short term as it fetches higher returns. 

Have you included real estate investment in your portfolio? 

Top investors will always suggest diversity in the investment portfolio. Real Estate Investment is one of the best ways to do so. Real estate investment earns both Capital and Revenue gains. If you avail of finance to support real estate purchases, you will qualify for a tax rebate for the interest you pay within the financial year. Thus, it is a two-way sword to make money. Being a stable investment, the return from Real Estate investment can even mitigate the losses you incur with some of your high-risk investments. Therefore, you should compulsorily include real estate investments in your portfolio to get the right mix between secured and unsecured speculations. Real estate investment gets you a much higher yield than the FD returns at almost equal investment risks. 

National Pension Scheme 

If you have to get a regular income during retirement, you must invest in the NPS. You can start contributing a small amount monthly towards this Government monitored fund. On maturity, you will receive a portion as a lump sum payment, and a portion gets invested in purchasing a life annuity. It is one of the best schemes to consider if you want to start your investment with the minimum amount. 

Systematic Investment Plans 

SIP is a gallant option to consider starting an investment. The amount you contribute shall be a part of the collective corpus that will get invested in various investment tools. The best part about SIP investment is that you can start with a minimum monthly contribution and hold the SIP for as long as you want. If you retain the investment for more than 3 years, you will enjoy a tax rebate on the corpus withdrawal. You must start investing in the SIP from an early age.