Where should I invest my money – 13 Best Investment Options?

Where should I invest my money is the first question every beginner asks when they look to start their investing journey.

Note:- This is not a recommendation I am only giving knowledge so I highly suggest you follow this advice after you do your own research or consult to your financial advice so let’s get into the topic.

Where should I invest my money?

There are numerous examples where one can invest money but here are the best investment options that one can know to invest money. All the investment options which I said below are legit so you can start the investment journey without any doubt.

1. Invest in yourself
2. Stocks
3. Bonds
4. Mutual Funds
5. Gold
6. Gold Bonds
7. Real Estate
8. REITS
9. NPS
10. ULIP
11. SCSS
12. NSC
13. FD

1. Invest in yourself

Invest in yourself I know you are not looking for this but seriously man when people think of the answer of where should I invest my money always look for the stock market etc. But I highly suggest investing in yourself. Investing in yourself doesn’t mean that you will empty your wallet by doing party, traveling on and on.

Simply means that you will invest in yourself upgrading your skills for upgrading your knowledge so that you can get a limitless or infinite return that no other stock market or any other investment option can get. Warren Buffett the king of the investor himself say that the best investment one can do is in themselves.

Note:- Risk and Return can vary so don’t stick with the data. Most of the time every person gets different returns ok. Risk and Return are in average and approximate so don’t get rigid with my words. I know you are a smart audience

Risk Involve – Low

Return – Infinite ( Not kidding )

2. Stock Market

Stocks are a very good investment option if you are looking to invest money but it is highly volatile so if you have good knowledge of proper command of the stock market and how the stock market works then I only recommend you to invest money otherwise if you don’t know anything about that you can’t jump into the directly.

One can invest money in the stock market in the following things you can invest money in index funds, ETF or you can directly invest money in equity.

Risk Involve – Low/ Medium/ High (depending on which segment you invest in the stock market)

Return – 17.5% (Nifty Index Fund last 2-decade average return)

3. Bonds

In simple words basically, bonds are debt security that helps the Government and other corporate sectors to raise money from people and it is a very good option. One can generate a decent amount of interest on bonds. Bonds are of two types government bonds and other corporate bonds.

Risk Involve – Low/Medium ( again which bond you invest government or corporate )

Return – 7.2 % ( average Indian bond in last 10 years)

4. Mutual Funds

Mutual Funds basically are pools of money that are managed by professional managers. If you are a beginner and you don’t know any financial knowledge you can start your investing journey with a mutual fund it is a great option. But you have to keep in mind that there are lots of charges you have to pay exit load or expense charge.

Risk Involve – Low

Return – 5 to 15%

5. Gold

Gold is the go-to investment option for most people because they think that gold is a safe and much better investment option and yes it is because when you look at the graph of average return it is almost beating the inflation rate.

So that’s a very good advantage of doing investment but as you know when you look at social security when you have physical gold it becomes a risk to the safety of your gold. The second thing is that making charges is much which can result in not good outcomes looking at the risk involved.

Risk Involve – Low to Medium

Return – 8.8% (average return last of 10 years)

6. Digital Gold

The alternative to physical gold is digital gold. Yes, you can throw your worries of getting theft. It is virtually present, you will be relaxed so you don’t have to worry about yourself all the time about your gold and you will also save lots of money on the locker for physical gold.

7. Real Estate

If you have a handsome amount of money then you can invest your money in Real Estate. Real Estate needs lots of money but it is a good option because it has low volatility if you compare that with stocks or another option so one can think of real estate as an investment option. The second thing is that real estate gives a good amount of return which will help you to fight with your inflation.

Risk Involve – High Risk

Return – 9-10%

8. REITs

REITs are basically Real Estate Investment Trusts. This helps to make your investment in real estate with a small amount compared to the actual amount you need to invest in real estate. But you have to have an eye on REITs because there is volatility which can cause you losses.

Risk Involve – Low

Return – 7 to 8%

9. NPS

If you are looking to retire happily then you should know about NPS. The National Pension Scheme helps individuals to save money for retirement without any headaches. So you can get the advantage of NPS if you are going to retire or anyone in your family is about to retire.

Risk Involve – Low to Medium

Return – 12%

10. ULIP

Unit Linked Insurance Plan is a combo. Basically helps you to make your investment and also gives you an insurance plan so that’s a bonus for you. I know you have to pay for that. But it is not a bad option by looking at your risk appetite they will help to invest money and get your insurance plan.

Risk Involve – Low to High

Return – 10 – 12% ( average return in last 10 years )

11. SCSS

Senior Citizen Saving Scheme helps to earn more money after you retire. If you are at the age of 60 you can get the benefit of SCSS which helps to a good amount of return.

Risk Involve – Low to Medium

Return – 8.2%

12. NSC

National Savings Certificate is a fixed-income investment program. The best part of NSC is that you get tax exemption which is a very good option for anyone who is looking to save money legally on tax.

Risk Involve – Low

Return – 8.8%

13. FD

Fixed deposit 😤 If you are in your 20s and 30s looking to invest in fd? Not a bad option but it is a very very very bad option. I know you all are fd lovers that’s why I kept fd at last on the list.

I am sure you have got a good option till now other than fd. Fd is a very safe option it only helps you to save your money but it actually doesn’t save. You hardly get 2-3% after deducting tax. This doesn’t beat inflation, my dear friend.

I highly recommend making investments where you can actually beat the inflation rate.

Risk Involve – Low

Return – 2 to 8 % (Don’t be happy if you are in your 20s and making up your mind to invest in fd for 5%) The higher side of return is rarely any bank provides and for senior citizens.

Finally, you get your answer of where should I invest my money. Some more points I had provided like if you are asking the question where should I invest money for short term etc.

Where should I invest my money for 1 year?

I highly suggest investing for the long term but if you are looking to invest money for 1 year you can do it but you will get short of investment options.

1. Liquid Funds
2. Ultra Short Duration Funds
3. Low Duration Funds
4. Money Market Funds
5. FD
6. Post office term deposit

Listen I know you can invest in equity or the stock market but this is not a wise option if you are looking for less than 1 year of investing in stocks.

Where should I invest my money for short term?

Note that short-term investment options will not give you a miracle return ok. You can get up to a decent amount of return. Because miracles and magic of compounding happen only in the long term.

1. Saving Account
2. Liquid Mutual Funds
3. NSC
4. FD
5. RD

Where should I invest my money for the long term?

If you are looking to invest for 1 decade 2 decade or 3 decade. Note 1 decade = 10 years. So if you are investing for 10 -20 or more years then the best thing you can do is invest money in the stock market.

In the stock market, you can put your money in an index fund or equity depending on your knowledge about the stock market.

Where should I invest my money in share market?

I think if you are a beginner you can go with index funds.

If you are intermediate you can invest your money in ETF.

Or if you have lots of knowledge regarding the stock market. You have very good knowledge of a particular stock. You had done your homework on that particular stock so you can invest money in a particular xyz stock.

Where should I invest my money to get highest return?

The highest return that you can get investing money is in yourself which is infinite. No other investment option can give you. I know you were not looking for this answer but trust me guys this is the best investment you can do.

Where should I invest my money as a student?

Good going friend if you are investing money as a student. You invest that money in upgrading your skill set and if you still have some money left you can invest money in a mutual fund.

It is a good option because you are a student and you don’t have that much time so on behalf of you, your fund manager will make a good investment. But if you have good knowledge of finance you can do your own homework before putting money anywhere.

Where should I invest my money after retirement?

Some of the best investment options to make after retirement are as follows:-

1. SCSS ( Senior Citizen Savings Scheme )
2. POMIS ( Post Office Monthly Income Scheme )
3. POTDS ( Post Office Time Deposit Scheme )
4. PMVVY ( Pradhan Mantri Vaya Vandana Yojana )
5. FD ( Fixed Deposit )

Conclusion

In the end, you can do your own analysis before putting money anywhere. I tried my best to provide the answer to every possible question. I hope you got the answer to your all questions about where should I invest my money?

FAQ’s