Financial Guide: Best Investment Options in India

Whenever we talk about investments, the biggest dilemma we face is ‘where to invest and how much to invest?’. It’s all right to have confusion, not everyone can be an expert on investment. However, everyone can be smart enough to do the right and take the right help. Every bank or NBFC (Non-Banking Financial Companies) have investment advisors who can help you. Moreover, there are other people around you who have good knowledge about finance and investments. These people are generally retired professionals whom you can approach. These people are not liable to promote any particular organization post-retirement, hence will share an uninfluenced advice.

How to choose the most suitable investment option for yourself? Choosing the right investment alternatives for yourself is easy, you have to ask yourself a few question and answer them.



1. What kind of returns are you expecting?
2. How much are you ready to take?
3. How long are you planning to invest for?
4. What is the purpose of investment?

If you finally find the answer to all these questions, you will get your suitable investment alternative.

Coming back to investments, if you are planning to invest, here are few good investment option in India with all their pros and cons.

  1. Fixed deposit: Starting with the most popular investments, Fixed deposits is the top choice of a majority of Indian population. The reason for the unmatched popularity is due to the lower risk involved. Moreover, market fluctuations never affect investments made in fixed deposit. The offered interest rate on investment remains the same and the investor gets the assured sum upon maturity. Returns from FDs are moderate and tenor flexibility makes it a suitable investment option. Just in case, if you are planning to invest in FDs; NBFC (Non-Banking Financial Companies) like Tata capital, India bulls, and Bajaj finserv offer a higher interest rate on FD.
Image Courtesy: Moneycontrol
  1. Mutual fund: Everybody who plans to invest, knows about mutual funds. To those who are looking for higher interest gains in lesser time, mutual funds are your thing. However, greater returns mean greater risk, and mutual funds are the riskiest investment option in India.
  2. Speculative Investments: Speculative investment is a term for profits earned through selling tradable commodities. The focus here on speculative investment is to gain profit with the increasing price of the object. Commodities can be gold, agricultural land, commercial property etc.
  3. PPF or public provident fund: This investment is only offered in government post-offices and banks. For those who are looking for long-term investments can leverage PPF. The principal amount gets locked for a minimum of 7 years for a partial withdrawal, and 15 years for complete closure. The interest rate is similar to FDs and you can start a PPF account with a mere sum of Rs 100.
Image Courtesy: Arbor Investment Planner
  1. MIS (Monthly Investment Scheme): Monthly investment schemes are not the best I would suggest, yet it is good for those planning their retirement. MIS is popular for faster liquidity and ensures a regular cash flow on a monthly or annual basis to help the investor manage their finance.
  2. Invest in property: Investing in property is the best to gain higher returns without taking much risk. A home or a commercial property is something which can gain you the highest returns, but the minimum time to expect return is 8-10 years.
Image Courtesy: Directional Finance
  1. Large-cap companies: Investing in large-cap companies can ensure good returns. You can try and invest in large-cap companies to garner decent returns.

Bottom line: Your expectations and the financial institution are the things that decide the future of your investments. Make sure your expectations are clear and you are investing in the right company.

I hope this article helped. For future updates and bits of advice, keep following us.