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To understand the investment options, or where to invest your hard-earned money, you
need to understand three terminologies first.

1. Risk Factor:  When you invest your money somewhere, it involves a risk factor,
means you can loose your money. In some investment options, the risk factor is
low, and in some the risk factor is high.
2. Liquidity: Liquidity means to the ease with which your investment or security,
can be converted into ready cash without affecting its market price.
3. Returns: How much your money can grow by the time is refer to the term
“Returns”.
If you understood these three terminologies, then you can analyze which investment
option is better for you among the given options.

Top 10 Investment Options
1. Savings Account:
This is the easiest form of investing your money, this needs no effort, research, you
just need to find a trustable bank and deposit your money. you can easily access your
funds anytime, thus the liquidity is high. Savings Accounts can easily be managed and
more than 80% of Indians have a savings account. So Savings Account is a very common
investment option across the globe.
Return Rate ( per annum ): 2.75% – 3.50%
 Key Point: You must have one or more Savings Accounts to manage your money.

2. Fixed Deposits:
This is the second most popular investment option, among all investment options. In
Fixed Deposits, you invest a lump sum amount in a bank and leave it for a period of
time may be 1 year or more. It is a safe and easy investment that requires a one-time
deposit. You can withdraw your money after the tenure, some banks may allow
withdrawing your money anytime.
 Return Rate ( per annum ): 3.75% – 6.10%
Key Point: If you are a young then never invest in FD, because cutting the
interest with the Inflation, your money remains the same as it is.

3. Gold / Digital Gold
This is the safest form of investment because with the inflation rate the value of Gold
also increases. for example, 10gm of gold costs Rs 88.62 in 1947 ( as per Indian Post

Gold Coin Services ), and in 2021 it costs Rs. 51,720 per 10gm. So gold value will also
increase in the future also. But the liquidity is low for physical gold, which means you
can not easily cash your gold, within 2, 3 days it takes time, and also it comes with a
risk of theft and all.
There is a new format of Gold termed digital gold, you can buy 24-carat gold online
and anytime buy or sell that via online brokers, according to the current market price
of gold. It is just that you will have a receipt that’s it, and if you want physical gold
that also can be possible. This is safe, the liquidity is high and the returns are the
same as normal gold.
 Return Rate ( per annum ): depends
Key Point: In a long term, investment in gold is preferable.

4. Health Insurance:
It is not a typical form of Investment but yes it is indeed an investment for your
healthy life. The risk of this investment is zero but it can save your loved one’s life. You
just need to invest a certain amount every year or month and in your health
emergency, it will really help you.
• Return Rate ( per annum ): Priceless
• Key Point: One should have one health insurance for themselves and thier family
too.

5. Real Estate:
Real Estate is a long-term story, really a long term. First, you need to find land, then
you need to invest a big amount to make a building, then rent it for about 5 or more
years, after that you will start getting profit out of it. Along with that maintenance
charge, maintaining the people, and many more. The liquidity is low, but the returns are
very high.
 Return Rate ( per annum ): depends
Key Point: In a long term, investment in real estate is very much beneficial, you
should have that much money and time to invest in that.

6. Government Bonds:
A government bond is a debt instrument issued by the Central and State Governments
of India. There are lots of bonds like Fixed-rate bonds, Floating Rate Bonds, Sovereign
Gold Bonds, and many more. These are the most secure form of investment.
• Return Rate ( per annum ): 7.50%

• Key Point: They are not always avialivlbe, government issued them for a
limited period of time. This is safest but not for the young people.

7. Mutual Funds:
Here comes the medium risk medium return form of investment. A mutual fund issued
by companies, they collect money from people like us and creates a money pool. Then a
fund manager uses this money pool to wisely invest in stocks, bonds, and other assets.
And we don’t need to worry about where the money goes, the fund manager takes
care of that. One can invest as a one-time or as a SIP ( Systematic Investment Plan ).
The liquidity is medium, it takes two or three business days to withdraw the money to
your bank account and the risk factor is also medium.
Return Rate ( per annum ): 8% – 30%
Key Point: You should invest in Mutual funds, the early you start, the more
returns you can expect by time. you can invest for short term, or long term
depends on which mutual fund you are investing and what is the risk factor.

8. Stock Market:
This is not the hype, it’s actually the best investment to consider but not for beginners.
Companies issue Public IPOs, and shares, to raise money for their business, and if they
make profits, then the people who have them also get a part of the company’s profit.
then which company to invest in? It needs a lot of knowledge about the companies
business model, debts, and many more.
The liquidity is medium, two or three business days to withdraw the money. This is a
high-risk and high-return type of investment.
Return Rate ( per annum ): (- ∞) – (+ ∞)
• Key Point: One should invest with proper knowledge. Warran buffet made his
career with stock market, and there are a lot of people who loss everything in
the stock market. Invest wisely.

9. Small Case:
When you have enough knowledge of the stock market, this is the best investment for
you. Here you can invest in ideas, you can select the same type of stocks and make a
portfolio and invest simultaneously, thus the risk factor is a little bit low than the stock
investing. You can choose already created small cases by professionals like “All Weather
Investing”, “Equity & Debt” and many more.
The liquidity is the same as stocks, and this is a medium risk and high return type of
investment.
• Return Rate ( per annum ): (- ∞) – (+ ∞)

• Key Point: Innovative way to invest in stocks, you are investing in ideas after all,
one should consider this, who already invests in stocks.

10. Cryptocurrency:
Lastly, Cryptocurrency is a digital asset and will be very popular in the future. This will
be a form of future currency. All these Cryptocurrencies are secure and managed by
blockchain technology. You can invest in Cryptocurrencies like investing in dollars or
other currencies. Some of the popular Cryptocurrencies are Bitcoin, Ethereum,
Dogecoin, etc.
• Return Rate ( per annum ): (- ∞) – (+ ∞)
• Key Point: Invest in this without expecting a stable return, invest a small
amount and when the returns are high withdraw it.

Some Parameters of the top 10 Investment Options:
The Art of Investment

Conclusion:
There are many more investment options but these are all the popular ones, All
investments are subject to market risks, read all scheme related documents carefully,
and invest wisely.

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