Where To Invest, To Make More Money?

You can’t create wealth by just saving as it will not be enough to cover expenses in your retirement years, so it is important to think of investments. With financial institutions designing newer products to suit your every need, you have various types of investments to choose from.

Depending on your risk appetite and financial goals you can choose to invest in popular types of investments such as fixed deposits, recurring deposits, mutual funds, and more. However, as an investor, you have to be prudent and allocate your savings only after studying the type of investments extensively. So, here’s a brief overview of the various types of investments that you can choose from.

Fixed deposits

Fixed deposits are one of the oldest investment plans in India. They are popular and desirable for a number of reasons such as the assurance of returns and low risk. To accrue these benefits it is best to invest in FDs offered by reputable issuers like Bajaj Finance. They not only offer attractive FD interest rates, but also other exciting features.

When you invest in a Bajaj Finance cumulative FD for at least 36 months, you can earn attractive interest of up to 8.75%. The Fixed Deposit (FD) interest rate on the same plan is 9.10% for senior citizens. To encourage reinvestment, Bajaj Finance also offers additional interest on the renewal of FDs. Also, Bajaj Finance Fixed Deposits have a CRISIL rating of FAAA, which means that your investment is extremely safe.

Provident Fund (PF)

In addition to FDs you can also invest a portion of your money into a PF. If you are a salaried person, your employer deducts a contribution from your salary each month and deposits it to your EPF account. The contribution is limited to 12% of your basic salary plus DA. The employer also contributes an equal amount towards your EPF.

Should you wish to invest more in an EPF, you can do so by voluntarily increasing your contribution by converting your EPF into Voluntary Provident Fund (VPF). Note that your employer’s contribution may or may not increase with respect to yours. You can check Provident Fund (PF) balance online.

If you’re not salaried, but a freelancer, self-employed individual or work in an unorganised sector, you can open a Public Provident Fund account to invest your surplus income. Your investment in PPF can fetch you good returns that do not fluctuate. This is because they are backed by the government. Moreover, you can withdraw funds from your EPF account on retirement or when you change jobs and PPF after 15 years of opening it. The interest rates on PF accounts are slightly higher than other small savings instruments.

Mutual funds via SIPs

Alternatively, if you have a moderate risk-appetite then you can invest in mutual funds. Though mutual funds are directly linked to the market and are subject to risks, choosing the SIP route can help spread the risk and will allow you to earn optimal returns too. When you stay invested in SIPs for a long time you can build a significant corpus thanks to the power of compounding. Through SIPs you can choose to invest in various types of mutual funds like equity, debt or hybrid. Debt funds are ideal for short-term and medium-term investments. They carry medium-risk and yield moderate returns of up to 8%. Equity funds are great for long term investments. They carry higher risk but also yield better returns of up to 12% on average. Best of all, you can start an SIP by investing just Rs.500 a month.


Stock market

Stocks, also known as equities, give you ownership rights in a company whose stocks you are buying. These stocks are traded on the stock exchange and are highly volatile owing to market fluctuations and economic conditions. However, stocks also have the potential to yield high returns and in the long run they beat inflation. Bear in mind that as a beginner it is wise to study the market and invest in small amounts instead of putting all your money at stake.

Real estate

Alternatively, you can also invest in real estate by purchasing a plot, house or flat and enjoy regular rental income from it. What’s more, by pledging your house property through reverse mortgage, you can earn regular income from it once you retire. If you have the finances to make a sizeable investment, choose a commercial property as it yields higher returns as compared to a residential one.

With an insight into the various types of investment plans available to you, start investing to create a corpus and achieve your goals without making compromises.