20 Best Investment Options in India for You to Invest in 2024

In 2024, choosing the right investment ideas is key to growing your wealth. As people look for different money investment plans, matching your strategy with your goals, risk tolerance, and investment time is important. Plenty of options exist, from safe fixed deposits to higher-risk equity picks. 

This article highlights the 20 best money investment ideas, helping you decide how to invest 10 lakhs or more. It also offers tips for different age groups, including Gen Z, on the best investment options.

1. Equity Shares

Investing in individual stocks or equity picks is among risk-takers’ most popular investment ideas. Stock market investments can provide significant returns, especially when choosing the right companies. However, it’s essential to do thorough research or seek an investment advisory to avoid potential losses.

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2. Exchange-traded funds (ETFs)

ETFs are one of the most cost-effective and liquid ways to invest in a broad range of assets, from equity to commodities. As an investment option for Gen Z, ETFs are perfect due to their simplicity, liquidity, and low expense ratio, making them an efficient tool for portfolio diversification.

Here are some well-known ETFs traded on the Indian stock exchanges:

Equity ETFs:

• Nifty 50 ETF: Tracks the Nifty 50 index, representing the largest 50 companies listed on the National Stock Exchange (NSE).
• Sensex ETF: Tracks the Sensex index, representing the 30 largest Bombay Stock Exchange (BSE) companies.
• Nifty Midcap 150 ETF: Tracks the Nifty Midcap 150 index, representing the 150 mid-cap companies listed on the NSE.
• Nifty Smallcap 250 ETF: Tracks the Nifty Smallcap 250 index, representing the 250 small-cap companies listed on the NSE.
• Nifty Bank ETF: Tracks the Nifty Bank index, representing the leading banking stocks listed on the NSE.
• Nifty IT ETF: Tracks the Nifty IT index, representing the leading information technology stocks listed on the NSE.

Debt ETFs:

• Nifty Liquid Plus ETF: Tracks the Nifty Liquid Plus index, representing short-term debt securities.
• Nifty Gilt 10-Year ETF tracks the Nifty Gilt 10-Year index, representing government bonds with a 10-year maturity.
• Nifty Corporate Bond Plus ETF: Tracks the Nifty Corporate Bond Plus index, representing corporate bonds.

Gold ETFs:

• Gold ETF: Tracks the price of gold.

International ETFs:

• Nifty S&P 500 ETF: Tracks the S&P 500 index, representing the largest 500 companies listed on the New York Stock Exchange (NYSE).
• Nifty MSCI Emerging Markets ETF: Tracks the MSCI Emerging Markets index, representing leading emerging market stocks.

3. Mutual Funds

Mutual funds, particularly equity and hybrid funds, are the best money investment ideas for those seeking higher returns over the long term. These funds pool money from several investors and invest in stocks, bonds, or other securities. Equity picks have a higher potential for growth but come with increased risks. Whether you have a high-risk appetite or are risk-averse, there’s a fund suited for everyone.

Here are some well-known mutual fund schemes in India, categorized by their investment objectives:

Also Read: Equity vs Mutual Funds

Equity Funds:

• Large-Cap Funds: Invest in large, well-established companies.
  • HDFC Large Cap Fund
  • Axis Bluechip Fund
  • Reliance Large Cap Fund
• Mid-Cap Funds: Invest in medium-sized companies.
  • Mirae Asset Mid-Cap Fund
  • Axis Mid-Cap Fund
  • Kotak Emerging Equity Fund
• Small-Cap Funds: Invest in small-sized companies.
  • Nippon India Small Cap Fund
  • Axis Small Cap Fund
  • SBI Small Cap Fund
• Multi-Cap Funds: Invest across large, mid, and small-cap companies.
  • Parag Parikh Flexi Cap Fund
  • ICICI Prudential Multicap Fund
  • Kotak Standard Multicap Fund

4. Fixed Deposits (FDs)

Fixed deposits (FDs) have always been popular in India due to their low risk and guaranteed returns. Though the returns may not be as high as those of some market-linked options, FDs remain a preferred choice for conservative investors. FDs offer safety and predictable returns, especially for those who want to park a large sum like ten lakhs.

Here are some popular fixed deposit options in India:

Public Sector Banks:

• State Bank of India (SBI): Offers competitive rates and a wide range of tenure options.
• Bank of Baroda: Known for its strong financial performance and customer service.
• Punjab National Bank (PNB): Offers good interest rates and a wide network of branches.
• Canara Bank: Provides reliable banking services and competitive FD rates.

Private Sector Banks:

• HDFC Bank: Offers a variety of FD options with competitive interest rates and convenient online banking.
• ICICI Bank: Provides a wide range of FD products and services, including online FD creation.
• Axis Bank: Offers competitive interest rates and a wide range of tenure options.
• Kotak Mahindra Bank: Known for its innovative banking solutions and competitive FD rates.

Non-Banking Financial Companies (NBFCs):

• Bajaj Finance: Offers high interest rates on fixed deposits.
• Bajaj Finserv: Provides competitive interest rates and a wide range of tenure options.
• Shriram Transport Finance Company: Offers attractive interest rates on fixed deposits.

5. Public Provident Fund (PPF)

PPF is a government-backed long-term investment plan ideal for risk-averse investors. An attractive interest rate and tax benefits under Section 80C make it a strong contender in any money investment plan. Although it comes with a lock-in period of 15 years, partial withdrawals are allowed after a few years, making it moderately flexible.

6. National Pension System (NPS)

NPS is one of the best long-term investment ideas for retirement planning. It allows investors to create a pension corpus that can be withdrawn at retirement. It’s especially appealing because of the additional tax benefits under Section 80CCD(1B).

7. Real Estate

Real estate remains one of the safest money investment options for those with a substantial capital base, such as 10 lakhs. While the initial investment is large, real estate provides the potential for capital appreciation over the long term. With rental income adding to the value proposition, real estate remains a solid long-term investment.

8. Gold

For centuries, gold has been seen as a reliable investment. Whether in the form of physical gold, gold ETFs, or sovereign gold bonds, it’s an essential component of any diversified portfolio. Digital gold has also recently become a popular investment option for Gen Z.

9. Sovereign Gold Bonds (SGB)

SGBs combine the benefits of gold with the convenience of bonds, offering interest and potential capital appreciation. With tax exemptions on redemption, they are a modern way to invest in gold without the hassle of physical storage.

10. Unit Linked Insurance Plans (ULIPs)

ULIPs serve a dual purpose—insurance and investment. They are among the best investment ideas for life cover and market-linked returns. ULIPs also offer tax benefits, making them an attractive choice in a comprehensive money investment plan.

Here are some well-known ULIPs offered by leading insurance companies in India:

Life Insurance Corporation of India (LIC):

• LIC Jeevan Anveshan: A flexible ULIP with multiple fund options and a guaranteed death benefit.
• LIC Jeevan Lakshya: A ULIP designed for child education and marriage planning.
• LIC Jeevan Anand: A traditional ULIP with guaranteed death and survival benefits.

HDFC Life:

• HDFC Life Sanchay Plus: A ULIP offering guaranteed death and survival benefits.
• HDFC Life New Age: A ULIP with multiple fund options and a guaranteed death benefit.
• HDFC Life Click to Invest: A ULIP that can be purchased online.

Reliance Nippon Life Insurance:

• Reliance Nippon Life Smart Saver: A ULIP offering multiple fund options and a guaranteed death benefit.
• Reliance Nippon Life Wealth Builder: A ULIP designed for wealth accumulation.
• Reliance Nippon Life Health Shield: A ULIP with a health insurance component.

Max Life Insurance:

• Max Life New Age: A ULIP with multiple fund options and a guaranteed death benefit.
• Max Life Super Saver: A ULIP offering guaranteed death and survival benefits.
• Max Life Wealth Plus: A ULIP designed for wealth accumulation.

ICICI Prudential Life Insurance:

• ICICI Prudential Smart Saver: A ULIP offering multiple fund options and a guaranteed death benefit.
• ICICI Prudential LifeTime: A ULIP designed for long-term wealth accumulation.
• ICICI Prudential Smart Plus: A ULIP with guaranteed death and survival benefits.

11. Recurring Deposits (RDs)

RDs provide a systematic way to save and earn returns for those seeking a disciplined money investment approach. Their consistent nature makes them a stable option for individuals who prefer low-risk investments but want flexibility in their investment horizon.

12. Senior Citizens’ Saving Scheme (SCSS)

Specifically designed for senior citizens, SCSS is a government-backed investment scheme that offers high returns with security. For retirees or those looking for post-retirement stability, SCSS provides a solid, risk-free option with tax benefits.

13. Debt Funds

Debt funds invest in fixed-income securities such as bonds, government bonds, and debentures. They offer moderate returns and are less volatile than equity-based mutual funds, making them suitable for conservative investors. In the long term, they can serve as part of a diversified money investment plan.

Here are some well-known debt funds offered by leading fund houses in India:

Liquid Funds:

• Axis Liquid Fund
• HDFC Liquid Fund
• ICICI Prudential Liquid Fund
• Reliance Liquid Fund

Money Market Funds:

• Nippon India Money Market Fund
• SBI Money Market Fund
• Axis Money Market Fund
• HDFC Money Market Fund

Short-Term Debt Funds:

• HDFC Short Term Debt Fund
• ICICI Prudential Short Term Debt Fund
• Axis Short Term Debt Fund
• Reliance Short Term Debt Fund

Long-Term Debt Funds:

• HDFC Long Term Debt Fund
• ICICI Prudential Long Term Debt Fund
• Axis Long Term Debt Fund
• Reliance Long Term Debt Fund

14. Post Office Monthly Income Scheme (POMIS)

The POMIS is another low-risk investment plan for individuals seeking a steady monthly income. With a government guarantee, it is a safe option for those who prefer stability over high returns. This money investment plan is popular among retirees and those looking for predictable returns.

15. Bonds

Government or corporate bonds offer a fixed return over a specified period. Government bonds, mainly, are considered risk-free. They are ideal for those who wish to preserve their capital while earning interest, making bonds an essential component of diversified investment ideas.

In India, there are several types of bonds available:

Government Bonds:

• Government of India (GoI) Bonds: The Indian government issues bonds to finance its expenditures. They come in various maturities, from short-term Treasury Bills to long-term Government Securities.
• State Development Loans (SDLs): Issued by state governments to fund infrastructure projects and other developmental activities.
• Municipal Bonds: Issued by municipal corporations to finance local projects like road construction, water supply, and sanitation.

Corporate Bonds:

• Debentures: Issued by companies to raise funds for expansion, working capital, or debt refinancing.
• Non-Convertible Debentures (NCDs): Debentures that cannot be converted into equity shares.
• Convertible Debentures (CDs): Debentures can be converted into equity shares under certain conditions.
• Infrastructure Bonds: Issued by special purpose vehicles (SPVs) to finance infrastructure projects.

16. Systematic Investment Plan (SIP)

SIP is one of the best ways to invest regularly in mutual funds. For those wondering how to invest 10 lakhs, SIPs offer the flexibility of investing smaller amounts over time, helping mitigate market volatility. Over the long term, SIPs can result in substantial wealth creation, making them one of the top money investment plans for those looking for consistency.

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17. Corporate Fixed Deposits

Corporate fixed deposits offer higher interest rates than bank FDs but come with slightly higher risk. They are a good choice for those who can afford moderate risk in exchange for higher returns. However, checking the company’s credit rating before investing is essential.

Here are some examples of popular corporate fixed deposit issuers in India:

NBFCs (Non-Banking Financial Companies):

• Bajaj Finance: Known for offering high interest rates on fixed deposits.
• Bajaj Finserv: Another NBFC that provides competitive interest rates on fixed deposits.
• Shriram Transport Finance Company: Offers fixed deposits with attractive interest rates.
• L&T Finance Holdings: A leading NBFC that provides fixed deposit options.

Housing Finance Companies:

• HDFC Limited: Offers fixed deposits with competitive interest rates.
• LIC Housing Finance Limited: Provides fixed deposit schemes with government backing.

Infrastructure Finance Companies:

• Power Finance Corporation (PFC): Offers fixed deposits with government backing.
• Rural Electrification Corporation (REC): Another government-backed company offering fixed deposits.

18. Balanced Funds

Balanced or hybrid funds invest in both equities and debt instruments, offering a mix of growth potential and stability. These funds are ideal for moderate-risk investors who want to benefit from the stock market while having the security of debt investments.

Here are some examples of well-known balanced funds in India:

Equity-Oriented Balanced Funds:

• HDFC Balanced Fund
• ICICI Prudential Balanced Advantage Fund
• Axis Balanced Fund
• Reliance Balanced Advantage Fund

Debt-Oriented Balanced Funds:

• HDFC Balanced Fund (Debt-Oriented)
• ICICI Prudential Balanced Fund (Debt-Oriented)
• Axis Balanced Fund (Debt-Oriented)
• Reliance Balanced Fund (Debt-Oriented)

Dynamic Asset Allocation Funds:

• Mirae Asset Dynamic Equity Fund
• ICICI Prudential Dynamic Equity Fund
• Kotak Dynamic Asset Allocation Fund
• HDFC Dynamic Asset Allocation Fund

19. Cryptocurrency

Although highly speculative, cryptocurrencies are gaining traction among younger investors, mainly Gen Z. While cryptocurrencies offer potentially high returns, they are incredibly volatile and should only be considered by those willing to take on high risk. For this reason, it’s crucial to seek proper investment advisory before entering the crypto market.

20. Peer-to-Peer Lending (P2P)

P2P lending platforms allow investors to lend money directly to borrowers and earn interest. This alternative investment idea is gaining popularity due to the potential for higher returns than traditional fixed-income instruments. However, it comes with the risk of default by the borrower, so tread carefully and diversify your lending portfolio.

Factors to Consider While Choosing Investment Options in 2024

When selecting money investment ideas, several factors should be considered to align your choices with your financial goals. Here are key aspects to keep in mind:

1. Risk Appetite
   Some investments, like equity picks, offer higher returns but come with greater risk. Others, such as FDs and government bonds, provide safety but with lower returns. Assessing your risk tolerance is essential before selecting investment ideas.
2. Investment Horizon
   Your investment time frame is critical. Short-term investment plans prioritize liquidity, while long-term options like PPF and NPS focus on growth and retirement.
3. Tax Benefits
   Several investment options, such as PPF, NPS, and ELSS mutual funds, offer tax advantages under Section 80C of the Income Tax Act. These should be factored into your decisions, particularly if reducing your tax burden is a priority.
4. Liquidity
   Liquidity refers to how easily an investment can be converted into cash. Real estate, for example, may take time to sell, whereas ETFs and stocks offer high liquidity. The liquidity required will depend on your financial needs and emergency planning.
5. Age & Financial Goals
   Your age and life stage play a significant role in deciding where to invest. Investment options for Gen Z, such as ETFs and cryptocurrency, may differ from those for retirees, who might prefer SCSS or FDs. Defining your goals will help you select the best money investment plan for you.

How to Invest 10 Lakhs in 2024?

If you have a lump sum amount like 10 lakhs, your focus should be on creating a diversified portfolio. Here’s a simple approach to diversifying your investment:

• Equity: For long-term growth, allocate 40-50% of your portfolio to equity picks, such as stocks and mutual funds.
• Debt: Invest 20-30% in debt instruments like bonds or PPF for stability.
• Gold: Allocate 10-15% to gold or SGBs for protection against market volatility.
• Real Estate: Consider allocating 5% to real estate or REITs, depending on your financial goals and risk appetite.

Conclusion

Whether looking for stable, low-risk options or high-growth equity picks, 2024 presents numerous opportunities to grow wealth. Understanding your risk appetite, investment horizon, and financial goals is essential.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

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