A Complete Guide To Smart Investments To Make Your Money Grow While Sleeping

Investment Options In India

How to invest and where to invest could be most overwhelming questions if you are looking to multiply your money the safest way possible. Although before putting your money anywhere in the market, one should be crystal clear about two basic convictions first. One, you should be ready to make risks your friend right about now and two, there is no shortcut of getting rich. Even the best investment plants could give a consistent growth to the money but there is no way it could pour money overnight. So, think wisely and act smartly to make the best of the financial opportunities that will give good returns and accordant growth with time.

You must have been familiar with the phrase, "it takes money to make money" and sooner you recognise the true potential of this mantra, sooner you will be making money left and right. The question remains, where to invest? So, fret not because this guide will provide you the details about every good investment that people are opting for as you are reading this.

Bank Fixed Deposits

This is the most beloved and the safest option in India to invest into. The rate of returns vary from bank to bank but being true to its name, it does offer a fixed return over a specified period of time and hardly any risk is involved in this investment plan. As per the directions of Deposit Insurance and Credit Guarantee Corporation (DICGC), each investor is insured for the maximum amount of Rs 1 lakh for principal and interest amount. For fixed deposits, banks offer cumulative and non-cumulative option under which one can opt to have the interest paid as per the underwriting or get the interest reinvested and get paid at maturity.

Fixed Deposit

Real Estate

Another investment that Indians are in utterly love with! Undoubtedly, real estate is the fastest growing sector in India. Whether you go for land for sale, plots, flats or house, it is one of the best decisions that you could make with your money. It is a known fact that the rate of property increases per annum and will provide high returns over the long term. This way you don't have to calculate any risk factors and lose you sleep over it. Invest once and see the money being multiplied every passing day. Some of the factors that works with this investment is its location, growth in the vicinity of the property and of course, the rental it can generate. Unlike other investment options, you don't have to think twice before aiming for this one.

Real Estate

Mutual Funds

Mutual funds are quite sophisticated and might seem confusing to a few but they are quite convenient and could be started for as low as Rs 500. As per section 80 C of the income tax deductions, mutual funds can also save you the tax money. When it comes to this investment, the money is managed by a professional which devise the strategy for the asset allocation. Investors of mutual funds make money through regular dividends/interest and capital appreciation. You should not worry about the money being wasted or stolen because the mutual fund investment is regulated and supervised by the Securities and Exchange Board of India (SEBI) and the Association of Mutual Funds in India (AMFI). Companies having proper certificates (which are allocated after a thorough research and background check on the company) could work in the financial market of India. Mutual funds does have higher market risks but also provide higher returns than some of the safer investment options.

Mutual Funds

Public Provident Fund

It is one of the safest long-term investment options which people of India decide on. One can open a PPF account in any bank and post office and get ready to garner the benefits of a tax free investment. The principal amount is locked for 15 years and you can get compound interest for the accumulated money too. If you wish, you can also increase the tenure by five years. Once you have invested in PPF account, you can withdraw the money only at the end of 6th year. Although, you can always opt for loan against the invested amount.

Public Provident Fund

Direct Equity

It may be one of the high risk investments but it offers a lucrative returns when compared with other investment options in India. All you need to do is to take some time and think about picking the right stock and plan for entry and exit from the market. If you can analyze the stock before investing into it, direct equity can do wonders for your money. All you need to invest in direct equity of fund is a Demat account. Currently, market returns on 1 year, 3 year and 5 years are 8%, 13% and 12.5% respectively.

Direct Equity Funds


Yes, gold is the evergreen investment option because of the reason that the price of gold hardly faces a decrement. You can pick from several options available like gold deposit scheme, gold ETF, gold mutual funds and so many more. One may be concerned about the safety of the asset and making charges that accounts for around 6-14% of the cost of the gold but you rarely have to worry about the los in this investment.


RBI Taxable Bonds

These bonds have a tenure of 7 years and the interest rate is 7.75% per annum. Needless to say, it is one of the safest options to invest in. These bonds are issued in Demat account and are credited in Bond Ledger Account of the investor. One can choose to avail the interest as a regular income or reinvest the accumulated interest to gain some more profits. As a proof of investment, a Certificate of Holdings is provided to the investor.

RBI Investment

Some of the investment options mentioned above provide fix returns while some are subjected to market risk. Analyse your financial need and the type of return you want for your money. For the best results, make use of both the kind of investment plans for short term and long term but before doing so, calculate the maximum possible risks and other aspects such as taxation and investment horizon.

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