Investment Options in India

When it comes to the investing possibilities in India, many individuals have a lot of doubts. Every Indian investor wants to put their money into the best investment alternatives so that they may get the highest possible return in the shortest amount of time possible with the least amount of risk. Every investor has their own needs and their own expectations from the investment. While some people invest for financial stability others invest to meet their investing goals. However, your investing alternatives should be determined by your risk taking capacity, financial goals, and liquidity requirements. 

The majority of the investors want to make investments that will provide them with the highest possible returns on their investment with the lowest possible risk of losing their investment amount. One such investment is a gold investment. However, there are a few things that you should keep in mind before investing in gold. The Gold rate in India changes on a daily basis therefore, it is advisable to check the price of gold before making any new purchase. Many people look out for great investment programmes that will allow them to grow their money in a matter of months or years while posing little or no risk. Unfortunately, there is no such thing as a high-return, low-risk investment product. Risk and returns go hand in hand; the higher the profits, the greater the risk, and vice versa.

Common Investment Options Available

There are various investment options available in the market where you can invest and grow your money. However, before investing in a product, you must evaluate your risk tolerance with the product’s related risks. Some investments have a high risk profile but have the potential to provide larger inflation-adjusted returns over time than other asset classes, whilst others have a low risk profile and hence lower returns. Some of the common investment options available in India are as follows:

Share Market

Share market or Stock market is the most common investment option available in the Indian market. There are a lot of investors that invest daily in the stock market. Stocks can be an excellent addition to any financial portfolio, if invested with adequate knowledge. Investing in various stocks might help you develop your savings, safeguard your money from inflation and taxes, and optimise your investment income. When it comes to investing in the stock market, it’s crucial to understand that there is a lot of risk involved. Therefore, it is advisable to only invest in the stock market only if you have the proper knowledge about the market.

Mutual Funds

Mutual funds are investment vehicles composed of a variety of stocks, bonds, equities, and other marketable assets. Mutual funds have no set rate of return and are subject to market swings. Mutual funds can provide you with a 10% to 15% return on your investment. There are three categories of mutual funds: debt, equity, and balanced. Debt mutual funds invest the bulk of your money in government bonds, corporate bonds, and securities, with the remainder in the stock market. Equity mutual funds, on the other hand, would put more of your money into the stock market and less in government, corporate, and government-sponsored bonds and securities. Balanced mutual funds invest a portion of their assets in both debt and equity funds.

Fixed Deposits

Fixed Deposits, or FDs, are a common savings product offered by banks for both short- and long-term investments. The rate of return on Set Deposits is predetermined by the Indian government and is fixed. Because the rate of return on Fixed Deposits has been established by the Indian government, rising inflation has no effect on the returns on these investments.

The term of a bank fixed deposit might range from seven days to ten years. FDs are divided into three categories based on their duration. Fixed deposits can be short term, medium term, or long term. You can make a one-time deposit that will earn you a specified amount of interest over time. Because no funds are pooled by a group of investors and interest is known before you invest, the returns are unaffected by market volatility. Keep in mind that any interest earned over INR 10,000 is subject to taxation.


Gols is one of the most common investment options in India. People buy as well as gift gold jewellery during various family occasions and festivals in India. The demand for gold is always high in the country. However, the price fluctuates on a daily basis. Therefore, it is important to check the Gold rate in India before buying the yellow metal. Along with the price of gold, you should also check the making charges in case of gold jewellery. The making charges on a piece of gold jewellery can vary from one jeweller to another. Therefore, it is important to check the making charges along with the gold price before making any new investment. 

Real Estate

Investing in real estate is generally a long term investment. This kind of an investment is for the very patient investors as it requires a lot of patience. Apart from the sum that is to be invested in the real estate, the investor also needs a legal and financial understanding to invest in this category. You need more initial investment amount than any other investment mentioned above. Also, you need to be mindful of the tax implications on these kinds of investments before investing. 

These are some of the common investment options available for Indian investors. However, it is advisable to evaluate your risk taking capacity before investing in any of the above mentioned investment options.