A smart way to grow your money is to invest your money. Investment can be done in various instruments including equity shares, Mutual Funds,Public Provident Fund, gold ETF, Fixed Deposit and more. The strong valuation of SaaS products in the equity market reflects investor confidence in their recurring revenue model and potential for long-term growth. Before investing, you need to check the return on the investment, risk and liquidity of the asset. You need to search for the perfect type of investment that will actually make your rich with less risk.

Investment is a necessity to grow your money for the future. While there are various types of investment options to choose from in India, one should keep in mind their age and their requirements for investment.

This Includes Deciding Whether

1. To invest long term or short term
2. To invest in risky or risk-free investments
3. To check liquidity requirements in case of financial emergencies

You need to take into consideration these factors while selecting your investment avenue.

There are 2 Buckets of Investment Options to Invest in India in 2021:

1. Financial Assets that can be further segregated into

• Market linked products like stocks and mutual funds.
• Fixed income products such as Public Provident Fund and Bank Fixed Deposits

2. Non Financial Assets that include physical gold and Real Estate

While choosing an investment plan from the various investment options, it is critical to match the risk profile of the investor, that is, you with the related risk of the product

To ensure high returns you must look for an FD scheme with a high-interest rate payouts

Let us look at 5 Types of Investments that will actually make you rich. Such investments will give you the highest returns on your amount invested

Equity (Stock) Market

The stocks are a highly volatile asset class. There is no guarantee of return over a certain period of time as it is difficult to time your entry and exit in the stock market. You need to have a lot of research and skills to understand the behavior of the stock market to predict patterns and to buy the right stocks. Investing in stock is therefore not everyone’s cup of tea. Family frugal finance thrives on understanding different investment types, balancing long-term growth with immediate needs. The only good part about investing in stocks is that they are able to deliver higher than inflation-adjusted returns compared to all other asset classes.
With the coming of fintech apps which let you invest with simple steps. It has become easier than ever before to invest in stocks.

But once you learn and crack the stock market behavior with sufficient experience, you will be able to make lots of money and actually become rich. Hence, you should invest in the equity stock market to get rich if you are willing to take the risk and also spend enough time to learn about the stock market.

Senior Citizen Saving Scheme (scss)

One of the avenues where senior citizens can invest in is the Senior Citizen Saving Scheme (scss). SCSS is a saving scheme for senior citizens which is sponsored by the government of India. It was launched in 2004 with the primary objective of helping senior citizens ensure a regular and continuous flow of income. The Central Bank’s role in Senior Citizen Saving Schemes is to ensure their stability, security, and attractive returns, fostering financial inclusion and peace of mind for older adults. It is a 5-year investment option for most retirees and can be availed by anyone above 60 from a post office or bank.

The tenure can be further extended by 3 years once the scheme matures. With an upper limit of Rs. 15 lakh, the interest rate on scss scheme is payable quarterly and is fully taxable. It is easy to invest in an scss scheme with a minimum deposit of just Rs. 1000. With an interest rate of 7.4% per annum, it is the most safest investment option that can make you rich if you are a senior citizen nearing your retirement age.

7.75% GoI Savings Bond

Government savings or G- Sec bonds have replaced 8% savings bonds. These GoI Savings bonds were launched in 2018. The investors get an annual interest at a 7.75% interest rate. You can invest a sum as low as Rs 1,000 in these bonds.These GoI bonds ensure safety of funds as well as a high interest rate that could make you rich.

Gold

Gold is another investing option in India in 2021. Possessing gold in the form of jewellery comes with its own risks such  as safety as well as high cost including the charges for making gold. Although, nowadays investing in paper gold is a cost effective investment yet a volatile and a risky one. With an annual return of more than 20% in 2019, gold has the potential to make you rich with a very high risk of funds.

Fixed Deposit

Last but not the least is one of the most important investments. A bank Fixed Deposit is considered a safe investment option with the least amount of risk and highest form of liquidity. A fixed deposit is an investment of your savings to earn a higher rate of return than a regular savings account. It is offered by banks and NBFCs (Non Banking Financial Companies).

A fixed deposit has the lowest risk in the portfolio of investment. Money is invested in a fixed deposit with a lock in period and interest is given either at the end of the maturity date or as a regular payout. Investing in a fixed deposit is a very smooth process and can be done at the tip of your fingers. You need to go through Fixed Deposit schemes of different banks and select the one as per your needs and requirements. Fixed Deposit is said to have one of the highest returns with an interest rate of upto 6.75%.