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Best Ways to Invest Money

Updated on August 28, 2025 , 36093 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 (%)2024 (%)Sub Cat.
DSP US Flexible Equity Fund Growth ₹67.7396
↑ 0.40
₹98914.616.22317.416.617.8 Global
Franklin Asian Equity Fund Growth ₹31.6147
↓ -0.32
₹270812.311.37.93.114.4 Global
Axis Credit Risk Fund Growth ₹21.6718
↓ -0.01
₹3671.44.88.67.66.98 Credit Risk
PGIM India Credit Risk Fund Growth ₹15.5876
↑ 0.00
₹390.64.48.434.2 Credit Risk
UTI Banking & PSU Debt Fund Growth ₹22.1725
↓ -0.01
₹8101.14.68.27.17.17.6 Banking & PSU Debt
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryDSP US Flexible Equity FundFranklin Asian Equity FundAxis Credit Risk Fund PGIM India Credit Risk FundUTI Banking & PSU Debt Fund
Point 1Highest AUM (₹989 Cr).Bottom quartile AUM (₹270 Cr).Lower mid AUM (₹367 Cr).Bottom quartile AUM (₹39 Cr).Upper mid AUM (₹810 Cr).
Point 2Established history (13+ yrs).Oldest track record among peers (17 yrs).Established history (11+ yrs).Established history (10+ yrs).Established history (11+ yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 5★ (lower mid).Rating: 5★ (bottom quartile).Rating: 5★ (bottom quartile).
Point 4Risk profile: High.Risk profile: High.Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.
Point 55Y return: 16.59% (top quartile).5Y return: 3.09% (bottom quartile).1Y return: 8.58% (lower mid).1Y return: 8.43% (bottom quartile).1Y return: 8.17% (bottom quartile).
Point 63Y return: 17.39% (top quartile).3Y return: 7.87% (upper mid).1M return: 0.44% (upper mid).1M return: 0.27% (lower mid).1M return: 0.22% (bottom quartile).
Point 71Y return: 22.97% (top quartile).1Y return: 11.30% (upper mid).Sharpe: 2.44 (top quartile).Sharpe: 1.73 (lower mid).Sharpe: 1.86 (upper mid).
Point 8Alpha: -1.71 (bottom quartile).Alpha: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).
Point 9Sharpe: 0.78 (bottom quartile).Sharpe: 0.57 (bottom quartile).Yield to maturity (debt): 7.81% (top quartile).Yield to maturity (debt): 5.01% (lower mid).Yield to maturity (debt): 6.47% (upper mid).
Point 10Information ratio: -0.40 (bottom quartile).Information ratio: 0.00 (top quartile).Modified duration: 1.99 yrs (bottom quartile).Modified duration: 0.54 yrs (lower mid).Modified duration: 1.78 yrs (bottom quartile).

DSP US Flexible Equity Fund

  • Highest AUM (₹989 Cr).
  • Established history (13+ yrs).
  • Top rated.
  • Risk profile: High.
  • 5Y return: 16.59% (top quartile).
  • 3Y return: 17.39% (top quartile).
  • 1Y return: 22.97% (top quartile).
  • Alpha: -1.71 (bottom quartile).
  • Sharpe: 0.78 (bottom quartile).
  • Information ratio: -0.40 (bottom quartile).

Franklin Asian Equity Fund

  • Bottom quartile AUM (₹270 Cr).
  • Oldest track record among peers (17 yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: High.
  • 5Y return: 3.09% (bottom quartile).
  • 3Y return: 7.87% (upper mid).
  • 1Y return: 11.30% (upper mid).
  • Alpha: 0.00 (top quartile).
  • Sharpe: 0.57 (bottom quartile).
  • Information ratio: 0.00 (top quartile).

Axis Credit Risk Fund

  • Lower mid AUM (₹367 Cr).
  • Established history (11+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderate.
  • 1Y return: 8.58% (lower mid).
  • 1M return: 0.44% (upper mid).
  • Sharpe: 2.44 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.81% (top quartile).
  • Modified duration: 1.99 yrs (bottom quartile).

PGIM India Credit Risk Fund

  • Bottom quartile AUM (₹39 Cr).
  • Established history (10+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 8.43% (bottom quartile).
  • 1M return: 0.27% (lower mid).
  • Sharpe: 1.73 (lower mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 5.01% (lower mid).
  • Modified duration: 0.54 yrs (lower mid).

UTI Banking & PSU Debt Fund

  • Upper mid AUM (₹810 Cr).
  • Established history (11+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 8.17% (bottom quartile).
  • 1M return: 0.22% (bottom quartile).
  • Sharpe: 1.86 (upper mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.47% (upper mid).
  • Modified duration: 1.78 yrs (bottom quartile).

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 (%)2024 (%)
Aditya Birla Sun Life Gold Fund Growth ₹29.9113
↑ 0.30
₹6637.919.840.324.513.418.7
Invesco India Gold Fund Growth ₹28.8259
↑ 0.14
₹1806.918.438.123.912.818.8
Nippon India Gold Savings Fund Growth ₹39.3887
↑ 0.42
₹3,2487.819.840.424.413.219
SBI Gold Fund Growth ₹30.0749
↑ 0.32
₹4,7407.719.540.324.713.419.6
ICICI Prudential Regular Gold Savings Fund Growth ₹31.858
↑ 0.34
₹2,3847.819.640.324.413.319.5
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Aug 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryAditya Birla Sun Life Gold FundInvesco India Gold FundNippon India Gold Savings FundSBI Gold FundICICI Prudential Regular Gold Savings Fund
Point 1Bottom quartile AUM (₹663 Cr).Bottom quartile AUM (₹180 Cr).Upper mid AUM (₹3,248 Cr).Highest AUM (₹4,740 Cr).Lower mid AUM (₹2,384 Cr).
Point 2Established history (13+ yrs).Established history (13+ yrs).Oldest track record among peers (14 yrs).Established history (13+ yrs).Established history (13+ yrs).
Point 3Top rated.Rating: 3★ (upper mid).Rating: 2★ (lower mid).Rating: 2★ (bottom quartile).Rating: 1★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 13.43% (upper mid).5Y return: 12.77% (bottom quartile).5Y return: 13.19% (bottom quartile).5Y return: 13.45% (top quartile).5Y return: 13.34% (lower mid).
Point 63Y return: 24.50% (upper mid).3Y return: 23.89% (bottom quartile).3Y return: 24.42% (lower mid).3Y return: 24.72% (top quartile).3Y return: 24.40% (bottom quartile).
Point 71Y return: 40.32% (upper mid).1Y return: 38.12% (bottom quartile).1Y return: 40.39% (top quartile).1Y return: 40.32% (lower mid).1Y return: 40.27% (bottom quartile).
Point 81M return: 4.25% (top quartile).1M return: 3.32% (bottom quartile).1M return: 4.16% (bottom quartile).1M return: 4.16% (lower mid).1M return: 4.22% (upper mid).
Point 9Alpha: 0.00 (top quartile).Alpha: 0.00 (upper mid).Alpha: 0.00 (lower mid).Alpha: 0.00 (bottom quartile).Alpha: 0.00 (bottom quartile).
Point 10Sharpe: 2.62 (top quartile).Sharpe: 2.52 (lower mid).Sharpe: 2.48 (bottom quartile).Sharpe: 2.53 (upper mid).Sharpe: 2.50 (bottom quartile).

Aditya Birla Sun Life Gold Fund

  • Bottom quartile AUM (₹663 Cr).
  • Established history (13+ yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 13.43% (upper mid).
  • 3Y return: 24.50% (upper mid).
  • 1Y return: 40.32% (upper mid).
  • 1M return: 4.25% (top quartile).
  • Alpha: 0.00 (top quartile).
  • Sharpe: 2.62 (top quartile).

Invesco India Gold Fund

  • Bottom quartile AUM (₹180 Cr).
  • Established history (13+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 12.77% (bottom quartile).
  • 3Y return: 23.89% (bottom quartile).
  • 1Y return: 38.12% (bottom quartile).
  • 1M return: 3.32% (bottom quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 2.52 (lower mid).

Nippon India Gold Savings Fund

  • Upper mid AUM (₹3,248 Cr).
  • Oldest track record among peers (14 yrs).
  • Rating: 2★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 13.19% (bottom quartile).
  • 3Y return: 24.42% (lower mid).
  • 1Y return: 40.39% (top quartile).
  • 1M return: 4.16% (bottom quartile).
  • Alpha: 0.00 (lower mid).
  • Sharpe: 2.48 (bottom quartile).

SBI Gold Fund

  • Highest AUM (₹4,740 Cr).
  • Established history (13+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 13.45% (top quartile).
  • 3Y return: 24.72% (top quartile).
  • 1Y return: 40.32% (lower mid).
  • 1M return: 4.16% (lower mid).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 2.53 (upper mid).

ICICI Prudential Regular Gold Savings Fund

  • Lower mid AUM (₹2,384 Cr).
  • Established history (13+ yrs).
  • Rating: 1★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 13.34% (lower mid).
  • 3Y return: 24.40% (bottom quartile).
  • 1Y return: 40.27% (bottom quartile).
  • 1M return: 4.22% (upper mid).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: 2.50 (bottom quartile).

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!

Disclaimer:
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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