9 Best Investment Options in India (2024)

A secure financial future is what we all dream of. And to start with that, you should first start believing in investments (if you don't already)!

The world is constantly changing, presenting both challenges and opportunities. This can make navigating the best investment options feel overwhelming. But fear not! This guide will help you navigate the exciting world of investment choices in India, empowering you to pick the perfect path for your financial goals and risk tolerance.

What Are the Best Investment Options in India?

There are several options to explore when it comes to investing money. And as important as it is, investing money for beginners can be intimidating, given all the available options. We have compiled a list of 9 best ways to invest money in 2024.

1. High Yield Savings Account

   A high-yield savings account serves the purpose of giving back a set interest rate on your savings. Your money is kept safe and is accessible to you any time you want. With online savings accounts like Freo Save, cash management becomes easier, and you get higher interest rates than traditional savings accounts. This type of account is best for when you need to access funds occasionally, making it one of the best short-term investment plans.
   Freo's digital savings account is more rewarding than your regular savings account! With up to an incredible 7%* interest rate per annum and zero balance account requirement, earning on your savings is now easier with our 100% digitally accessible savings account.

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2. Mutual Bonds

   Mutual bonds are a collection of funds from investors for buying assets like bonds, stocks, commodities, etc. They are great for investors to diversify their portfolio and spread their money across different types of investments.
   Investing money in mutual funds is great for long-term savings or when you want to gain knowledge or exposure to the stock market without purchasing or managing individual stocks.

3. Index Funds

   A type of mutual fund, index funds contain stocks of a particular market index like the Nasdaq-100 or the S&P 500 index funds. As opposed to the normal mutual funds that pay to have a fund holding, index funds are cash used to invest in companies of different indexes. This way, your portfolio is diversified.
   If you are searching for the best way to invest money long-term, index funds are a great way to get started. There are lower fund management fees and lesser volatility than other actively managed funds.

4. Stocks

   Investing money in stocks is another way of long-term investment. When we talk about stocks, the two most common investments are dividend stocks and individual stocks.
   Dividend stocks are companies that give out dividends regularly. These are well-established companies that distribute their earnings to the shareholders. This investment type is good for both a beginner investor and a retiree.
   Individual stocks, on the other hand, are stocks that represent the ownership share of a company. This is the best investment plan with high returns. However, there is a risk of high volatility, making it good for experienced investors who are in for taking the big risks.
   

5. Real Estate

   Every person who has searched for investing money would come across real estate as one of the best ways to invest money. This is because buying and selling a property is considered a fixed income source. However, with regards to real estate, there are other ways to invest in properties.
   Real estate investment trusts (REITs) are some of the more common ways, to begin with. These companies own income-generating properties like hotels, malls, or offices and offer a dividend to the investors.
   This type of investment is great for investors with established portfolios looking for diversification with a will to take high risks for more returns.

6. Money Market Funds

   In this investment project, you invest in a money market fund where you can buy quality, short-term, government or bank debts. This short-term investment plan is great for people who want to expose to market risk. But, don’t expect much risk or high returns as money market funds are similar to savings accounts.

7. Short-term Certificate of Deposits

   Certificates of deposits, or CDs, are bank-issued investment plans that usually generate fixed maturity dates and interest rates that can be traded in the secondary money market. The holder has no coupons with a short-term CD, but you will receive the principal interest at maturity.
   There’s one catch to this investment plan. These are time deposits, so you cannot withdraw them before the maturity date, or you are hit with a penalty.

8. Short-term Government Bond Funds

   Short-term government bonds are funds you can invest in government securities, commercial papers, and medium and long-term instruments. These bond funds are securities with a maturity period of one to three years with high liquidity. The interest rates are lower since the maturity window is short.

9. Cryptocurrency

   The world of crypto has been gaining immense popularity in recent years. This digital-only currency acts as a medium of exchange. Invest in cryptocurrencies if you are willing to take risks since the prices push high and low, fluctuating the market.

Invest Money in Digital Savings Account - Freo Save

Building your wealth over time requires you to make a well-planned investment plan and a strong savings strategy. And one of the best places to invest your money right now is through digital savings accounts like Freo Save, which gives out high profits.
With Freo Savings, you can open a savings account without hassles and earn up to a 7% interest rate annually!

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• Backed by NPCI, Visa, Equitas, CRIF
• Zero Balance Account Requirement