Top 10 ways of Investing your Money.
                     Top 10 ways of Investing your 
Money
1. Direct Equity
• Investing in stocks may not be everyone's cup of tea as it's a volatile 
asset class and there is no guarantee of returns. Further, not only is 
it difficult to pick the right stock, timing your entry and exit is also 
not easy. The only silver lining is that over long periods, equity has 
been able to deliver higher than inflation-adjusted returns 
compared to all other asset classes.
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2. Equity mutual funds
• Equity mutual funds predominantly invest in equity stocks. As per 
current Securities and Exchange Board of India (Sebi) Mutual Fund 
Regulations, an equity mutual fund scheme must invest at least 65 
percent of its assets in equities and equity-related instruments. An 
equity fund can be actively managed or passively managed.
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3. Debt mutual funds
• Debt funds are ideal for investors who want steady returns. They 
are less volatile and, hence, less risky compared to equity funds. 
Debt mutual funds primarily invest in fixed-interest generating 
securities like corporate bonds, government securities, treasury 
bills, commercial paper and other money market instruments. 
Currently, the 1-, 3-, 5-year market return is around 6.5 percent, 8 
percent, and 7.5 percent, respectively.
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4. National Pension System
• The National Pension System (NPS) is a long term retirement  
focused investment product managed by the Pension Fund 
Regulatory and Development Authority (PFRDA). The minimum 
annual contribution for an NPS Tier-1 account to remain active has 
been reduced from Rs 6,000 to Rs 1,000. It is a mix of equity, fixed 
deposits, corporate bonds, liquid funds and government funds, 
among others. 
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5. Public Provident Fund
• The Public Provident Fund (PPF) is one product a lot of people turn 
to. Since the PPF has a long tenure of 15 years, the impact of 
compounding of tax-free interest is huge, especially in the later 
years. Further, since the interest earned and the principal invested 
is backed by sovereign guarantee, it makes it a safe investment.
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6. Bank Fixed Deposit
• A bank fixed deposit (FD) is a safe choice for investing in India. Under 
the deposit insurance and credit guarantee corporation rules, each 
depositor in a bank is insured up to a maximum of Rs 1 lakh for both 
principal and interest amount. As per the need, one may opt for 
monthly, quarterly, half-yearly, yearly or cumulative interest option 
in them. The interest rate earned is added to one's income
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7. Senior Citizens’ Saving Scheme 
• The first choice of most retirees, the Senior Citizens' Saving Scheme 
(SCSS) has only senior citizens or early retirees can invest in this 
scheme. SCSS can be availed from a post office or a bank by anyone 
above 60, which has a five-year tenure, which can be further 
extended by three years once the scheme matures. Currently, the 
interest rate that can be earned on SCSS is 8.3 per cent per annum.
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8. RBI Taxable bonds
• The government has replaced the erstwhile 8 percent Savings 
(Taxable) Bonds 2003 with the 7.75 per cent Savings (Taxable) 
Bonds. These bonds come with a tenure of 7 years. The bonds may 
be issued in demat form and credited to the Bond Ledger Account 
(BLA) of the investor and a Certificate of Holding is given to the 
investor as proof of investment
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9. Real Estate
• If you do not intend to live in a property you buy, it can be your 
investment. The location of the property is the single most 
important factor that will determine the value of your property and 
also the rental that it can earn. Investments in real estate deliver 
returns in two ways, capital appreciation and rentals. However, 
unlike other asset classes, real estate is highly illiquid.
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10. Gold
• Possessing gold in the form of jewellery has its own concerns like 
safety and high cost. Then there's the 'making charges', which 
typically range between 6-14 per cent of the cost of gold. For those 
who would want to buy gold coins, there's still an option. One can 
also buy ingeniously minted coins. An alternate way of owning 
paper gold in a more cost-effective manner is through gold ETFs.
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