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6 Best Investment Options for a Salaried Person

Updated on June 16, 2024 , 52524 views

To build a strong financial backbone, one should invest the money in the right financial instrument. Though, not every investment guarantees substantial returns, but, if you invest wisely and for a good amount of time, the potential to gain healthy returns is higher. Especially, a salaried person who has to manage investments and expenses within a stipulated Income. Hence, a salaried individual need to consider amount, risk, risk, and return while determining the best investment option for them.


So, if you are someone looking out for a safe investment option, here are some of the best investment options in 2024.

1. Invest in Fixed Deposits

Most people consider the Fixed Deposit investment as a part of their Retirement investment options because it enables money to be deposited with banks for a fixed maturity period, ranging from 15 days to five years (& above) and it allows to earn a higher rate of interest than other conventional Savings Account. During the time of maturity, the investor receives a return which is equal to the principal and also the interest earned over the duration of the fixed deposit

Bank fixed deposits can be one of the Best Short Term Investment Options, as these are secure investments. Also, many banks provide better interest rates on FDs, which typically range from 3 percent to 7 percent, per annum. Investors can park their money for a minimum period of seven days to a maximum of 10 years.

2. Invest in Recurring Deposits

A Recurring deposit is an investment cum savings option for those who want to save regularly over a certain period of time and earn a higher interest rate. Every month, a fixed amount of money is deducted either from a Savings Account or a current account. At the end of the maturity period, investors are paid back their invested funds with accrued interest. At a public sector bank, an RD account can be opened with a minimum amount of as less as INR 100. While, at private sector banks the minimum amount to be deposited is INR 500 to INR 1000, whereas in a post office one can open an account at just INR 10. The interest rate at every bank may vary, but it typically ranges between 7 percent to 9.25 percent, p.a, and at the post office it is 7.4 percent (depending on prevailing Market condition). Senior citizens get 0.5 percent extra.

3. Invest in Systematic Investment Plan (SIP)

Salaried people can consider Investing in an equity-oriented product. While investing in Equity Funds, one should consider taking a systematic way, i.e. one should put a fixed amount of money every month instead of putting the money all at once. Also, within equity funds, one should diversify investment as per risk and return expectation. Ideally, a salaried person should stay invested for a long duration to earn good returns.

Since equity funds have various categories, investors with a moderate risk appetite can go for large-cap or multi-cap equity funds and investors with a high-risk appetite can invest in a mid-cap and small cap fund. Equity investment through SIP mode reduces the risk in the long term.

Best Equity SIP Mutual Funds 2024

Some of the best mutual funds to invest in India having Assets more than 300 Crore and having best CAGR returns for last 5 years are :

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
Nippon India Small Cap Fund Growth ₹169.637
↑ 1.64
Invesco India Infrastructure Fund Growth ₹67.96
↑ 0.92
Invesco India PSU Equity Fund Growth ₹68.66
↑ 1.16
Motilal Oswal Midcap 30 Fund  Growth ₹92.9397
↑ 1.48
Kotak Small Cap Fund Growth ₹262.864
↑ 2.44
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Jun 24

4. Invest in Public Provident Fund (PPF)

Public Provident Fund (PPF) is one of the most popular long term investment options in India. Since it's backed by the Government of India, it is a safe investment with an attractive interest rate. Moreover, it offers tax benefits under Section 80C, of income tax 1961, and also the interest income is exempted from tax. PPF comes with a maturity period of 15 years, however, it can be extended within a year of maturity for five years and more. Annual deposits of minimum INR 500 to maximum INR 1.5 lakh can be invested in PPF account.

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5. Invest in National Pension Scheme (NPS)

New Pension Scheme is gaining popularity in India as one of the best retirement investment options. NPS is open to all but, is mandatory for all government employees. An investor can deposit a minimum of INR 500 per month or INR 6000 yearly, making it as the most convenient for Indian citizens. Investors can consider NPS as a good idea for their Retirement planning because there is no direct tax exemption during the time of withdrawal as the amount is tax-free as per Tax Act, 1961. This scheme is a risk-free investment as it's backed by the Government of India.

6. Invest in Gold

Indian investors often look for Investing in Gold and it's also one of the good long term investment options. Gold is used as an Inflation hedge. Investing in gold can be done via buying physical gold, gold deposit scheme, gold ETF, Gold Bar or gold Mutual Fund. Some of the best underlying Gold ETFs in India are as follows:

Best Gold Mutual Funds 2024

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
Aditya Birla Sun Life Gold Fund Growth ₹21.3367
↑ 0.08
Invesco India Gold Fund Growth ₹20.75
↓ -0.06
SBI Gold Fund Growth ₹21.3952
↓ -0.01
Nippon India Gold Savings Fund Growth ₹27.9652
↓ -0.13
HDFC Gold Fund Growth ₹21.91
↓ -0.07
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Jun 24

All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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