October 24, 2021

Get to Know How to Invest Money in India

Investing money in a country where 60% of the GDP is dependent on households’ funds can seem complicated. But it really isn’t. The first step is identifying your needs and matching them with the correct instruments. The average earning individuals have varied appetite for risks. 

Hence, some of them look for very high and sometimes, quicker returns. To meet these needs, they’d be better off by investing in the stock market. But most of them want steady returns while surety of the safety of their money. In such a case, an institutionalised instrument like a Fixed Deposit (FD) is the best choice. This method of choosing an option can be further streamlined by deciding whether:

  1. To invest long term or short term
  2. To invest in risky or risk-free investments
  3. To check liquidity requirements in case of financial emergencies

There are 2 ways of investing money in India in 2021

  1. Financial Assets that can be further segregated into
  • Market linked products like stocks and mutual funds.
  • Fixed income products such as Public Provident Fund and Bank Fixed Deposits
  1. Non-Financial Assets that include physical gold and Real Estate

Following are certain ways of investing your money effectively in India:

Public Provident Fund (PPF)

Public Provident Fund (PPF) is a retirement savings scheme offered by the Government of India with the aim of providing a secure post-retirement income. PPF has a long tenure of 15 years and interest is huge especially in the later years. It does make a safe investment but your money is locked for that period of time

Mutual funds

Mutual funds are an investment option where a fund manager manages your account by investing your money in stocks and bonds based on their experience. In an actively traded Mutual Fund, the returns are largely dependent on the ability of the fund manager to generate returns by investing the clients’ money in equities and bonds. 

Gold

Gold is another investing option in India in 2021. Possessing gold in the form of jewellery comes with its own risks such as safety as well as high cost including the charges for making gold. Although, nowadays investing in paper gold is a cost-effective investment yet a volatile and a risky one.

Fixed Deposit

Last but not the least is one of the most important investments. A fixed deposit is an investment of your savings to earn a higher rate of return than a regular savings account. It is offered by banks and NBFCs (Non-Banking Financial Companies). A fixed deposit has the lowest risk in the portfolio of investment. Money is invested in a fixed deposit with a lock in period and interest is given either at the end of the maturity date or as a regular pay-out. 

Investing in Fixed Deposit is a very smooth process and can be done at the tip of your fingers. You need to go through Fixed Deposit schemes of different banks and select the one as per your needs and requirements. Bajaj Finance Fixed Deposit is said to have one of the highest returns with an FD interest rate of up to 6.75%. The other features include:

Features

  • Tenure: The minimum tenure is 1 year and maximum is 5 years for an FD at Bajaj
  • Deposit: A minimum deposit of Rs 25,000 only is required
  • Online Payment Options: Both, Unique Payment Interface (UPI) and Net-banking options are available 
  • Unique Selling Point: The entire process from end to end is paperless, thus it can be done from the safety of your home

Benefits

  • High Interest Rates 
  • Special offers to Senior Citizens 
  • Benefits to Pravasi Bhartiyas (NRIs) 
  • High Credibility and Stability 
  • Flexible Time Frames 
  • Fixed Deposit Interest Rate Calculator 
  • Smaller Minimum Deposit
  • Digitalized Application Process 
  • Online Loan against FD
  • Auto-renewal


Investment is a necessity to grow your money for the future. Investing your money is as important as earning an income. To grow your money with easy liquidity and guaranteed returns with less risk, Fixed Deposit is the best investment option of all.