Making proper investments is necessary to ensure financial stability in the long run. There could be various investment channels available, and it becomes necessary to choose the best option based on personal income, risk-bearing capacity, and financial objectives. Among the least risky investment instruments available in India, FD (Fixed Deposit) stands to be the best.
For those interested in steady returns with modest risks, Mutual Funds are quite popular. Equity mutual funds are apt for creating wealth in the long run, whereas debt mutual funds are apt for generating income. Public Provident Fund (PPF) and National Pension System (NPS) are great investment tools with tax exemptions available under Section 80C.
Stock market stocks are highly lucrative but involve high risk as well. One should do proper homework or take the advice of a financial advisor before investing money in stocks. Gold investment options, including digital gold and sovereign gold bonds, are a hedge against inflation and uncertainty.