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Best Ways to Invest Money

Updated on April 21, 2024 , 34034 views

Nowadays, many people look for the best ways to invest money, but most of the times people are confused to choose the right investment instrument that meets their financial needs. However, Investing money or making an investment decision is not that easy, as investors look for many objectives in just one instrument. Therefore, a question arises- where to invest? Well, there are diverse options to invest money, but we have shortlisted a few that are worth considering!

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Invest Money in Best Instrument

1. Mutual Funds

Mutual Funds are considered to be one of the best ways to invest money. According to the term, a Mutual Fund is a collective pool of money with a common objective for purchasing securities (via fund). It offers investors a route to save money and earn returns over time. Mutual Funds provide diverse investment options like Bonds, debt, equities, etc., without requiring investors to make separate purchases and trades. There are various Types of Mutual Funds that you could consider while planning to invest money.

Investors can start investments with amounts as low as INR 1000 and in the case of SIPs as low as INR 500. There are various Mutual Fund calculators, available which help first-time investors decide what amount to start off with. These Mutual Fund calculators help investor kick-start investments.

There are 44 Mutual Fund companies in India (called Asset Management Companies “AMCs”) which provide Mutual Fund schemes. These companies are regulated by SEBI.

Best Mutual Funds to Invest In India

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)Sub Cat.
IDFC Infrastructure Fund Growth ₹45.648
↑ 0.23
₹1,04318.343.780.136.42550.3 Sectoral
Franklin Build India Fund Growth ₹126.438
↑ 1.13
₹2,19114.538.576.63824.651.1 Sectoral
ICICI Prudential Nifty Next 50 Index Fund Growth ₹55.2273
↑ 0.10
₹4,44417.943.863.322.417.526.3 Index Fund
IDBI Nifty Junior Index Fund Growth ₹46.6396
↑ 0.08
₹7417.743.362.522.217.325.7 Index Fund
Motilal Oswal Multicap 35 Fund Growth ₹49.764
↑ 0.53
₹9,6601129.857.117.514.331 Multi Cap
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 23 Apr 24

2. Fixed Deposits (FD)

Fixed deposit is one of the most common ways to invest money. Every Bank offers a variety of services in FD’s that will lead to lucrative returns. FD’s come with a fixed maturity period. Also, as its maturity period ranges from 15 days to five years it can be considered for both short-term and long-term investments. Investors can earn on an average a rate of interest of 9.5% pa. So, if you want a safe investment then FD’s are one of the best ways to invest money.

3. Real Estate

Real Estate is the most preferred investment options. Basically, real estate invests and deals with ownership, purchases of land or property (estate). Before you invest in any kind of property, it is very important to get an in-depth detail first. For example, you should consider the location of property/land, look for wholesale properties, etc. It may take a huge amount to invest, but it’s a low risk with high return investment. However, if you are looking for one of the best ways to invest money then real estate is worth to think of!

4. Gold

Gold has always been one of the best ways to invest money. Moreover, Indians have traditionally had an affinity towards Investing in Gold. They have always looked at gold as an asset, which accumulates wealth over time. Gold has always maintained its value throughout the years. Also, it has been an excellent hedge against Inflation, i.e., it is considered to provide protection against the decreased value of a currency.

However, investors looking to invest money in gold can do so via ETFs or more specifically Gold ETFs. There are many benefits of investing in gold via the Gold ETF. If you are planning to invest, one should choose the best gold ETF to invest in by carefully looking at the performance of all the gold ETFs and then make a well-thought decision.

Best Gold Mutual Funds to Invest in India

Below is the list of top Gold Funds having AUM/Net Assets > 25 Crore

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2023 (%)
Aditya Birla Sun Life Gold Fund Growth ₹21.5013
↓ -0.39
Invesco India Gold Fund Growth ₹20.7422
↓ -0.49
SBI Gold Fund Growth ₹21.3952
↓ -0.39
Nippon India Gold Savings Fund Growth ₹27.9427
↓ -0.69
HDFC Gold Fund Growth ₹21.9476
↓ -0.44
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Apr 24

5. National Pension Scheme (NPS)

National Pension Scheme (NPS) came up with an objective to provide retirement Income to Indians. It is a retirement saving scheme where both employers and employees contribute towards building wealth, which is owed to the respective employee at the time of retirement. NPS is launched by the Government of India and the scheme is handled by the Pension Fund Regulatory and Development Authority (PFRDA).

However, NPS is considered as one of the best ways to invest money as its Tax Saving Investment. If investors invest up to 1.5 lakh annually they are eligible for tax Deduction under Section 80C. Indian citizens falling between the age bracket of 18 to 60 years are eligible for investing in NPS.

6. Insurance

If you fear sudden loss, or if you want to safeguard your family’s life, then insurance is one of the best ways to invest money. Insurance gives you and your family a lifetime protection. People opt for insurance as a backbone during uncertain times in life. It provides financial support over uncertainties/ risks both in business and human life. There are different types of insurance policies like Property Insurance, health insurance, accident insurance, Travel Insurance, liability insurance, etc.

However, insurance doesn’t only support during uncertainties, but it is a very efficient mode of investment as well. It encourages saving money through schemes that come with a maturity date. So, if you haven’t opted for any insurance so far, start it today!

If you want to grow your money, earn higher returns, reach Financial goals or save for retirement than follow the aforementioned investing avenues as they are the best ones to invest money. If you don’t start investing your money now, you are missing out on opportunities to grow your financial worth! So start investing now!

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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Jayalakshmi, posted on 26 Nov 18 3:55 PM

detailed insight into investment

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