Savings Is Not the Only Way to Save Money

Investing is not an easy task as it has a higher risk involved. In this article we shall discuss about the various ways to save/invest money in India with good returns.

A famous US businessman, Warren Buffett, says - "Do not save what is left after spending, but spend what is left after saving.” This statement is agreeable as each of us realized the necessity of savings after the pandemic outbreak. The crisis we have been facing for the past two years has taught us that it's not enough only to earn a good lump sum amount of money, but it's equally necessary to save a good part of the earned money.

As we all know, the convenient and conventional way of saving is through the banking sector. But, in the present situation, rather than depositing all the money in the banking sector, it's better to find multiple sectors to invest money in. Investing money does not only save a good amount of your income, but it also helps it grow dramatically. Though this growth has its own risk, one must be bold enough to take it. As the saying goes - "Take the risk or lose the chance.”

The following are the various ways to save/ invest money in India with good returns (Source: The Economic Times):

Direct Equity

Investing is not an easy task as it has a higher risk involved. Further, it’s difficult to choose the right stock and the entry and exit time. Therefore, investing in long period equity shares would be the best for beginners, with inflation-adjusted returns. To reduce the risks, one can diversify across the sectors and markets. The only thing to be done to invest in the equity is to open a Demat account.

Equity Mutual Funds

Equity mutual funds predominantly invest in equity stocks. Recently, as per the Securities and Exchange Board of India (SEBI), Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65 percent of its assets in equity and equity-related instruments. An equity fund can be actively managed or passively managed. These funds are categorized as domestic and international and based on market capitalization or investment area.

National Pension System

This is a long-term retirement-focused investment product managed by the Pension Fund Regulatory and Development Authority (PFRDA). At present, the minimum annual contribution to the NPS account to keep it active is ₹1000/-. It is a mix of equity, fixed deposits, corporate bonds, liquid funds, and government funds, among others, where investment can be made based on a person’s risk appetite.

Public Provident Fund

This is another safe investment as the interest and the principal amount invested are backed with a sovereign guarantee. As well as the tenure is long term for 15 years, and thus its compound tax-free interest is huge.

Senior Citizens’ Saving Scheme

This scheme is exclusively for 60 years above citizens who can avail of it from a post office or a bank account. It has an upper limit of ₹15 lakhs. Also, one can have more than one account. The interest rate is payable quarterly but taxable, but a deduction up to ₹ 50,000/- can be claimed. Though its interest rate remains the same till maturity, it is one of the sound schemes for early retirees.


Possessing gold has its own safety issues. But it is one of the best methods to invest as the making charges might rise to 25% of the gold cost. The alternative method of owning gold is paper-gold which is more cost-effective and can be done through ETFs. Other ways of investing in gold are sovereign gold bonds and gold mutual funds.


The above-listed investment plans are either fixed-income or market-linked. Fixed income investments help take care of the hard-earned wealth, whereas market-linked investments provide high returns while carrying high risk. If one has long-term goals, it is better to invest in both investments by keeping risk, taxation, gains, and time horizon in mind.