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Unlocking Financial Growth: How to Earn More Money by Investing?


How to Earn More Money by Investing?

In a world where financial security is paramount, the age-old question persists: “Where should I invest?” With an array of investment products available, choosing the right avenue can be daunting. Many individuals leave their hard-earned money dormant in savings bank accounts, earning a meagre interest rate of 2.5-3%. However, there exists a multitude of investment options that can offer significantly better returns. This article delves into seven investment options that can potentially provide superior returns compared to traditional savings accounts.

1. Bank Fixed Deposits (FDs)

Bank fixed deposits are a cornerstone of the investment landscape. They offer assured returns and a sense of security due to coverage under the Deposit Insurance and Credit Guarantee Corporation (DICGC) rules. With options for different interest payout frequencies and varying tenures, FDs can be tailored to one’s financial needs. Interest earned from FDs is taxed according to the investor’s income slab. Senior citizens typically enjoy higher interest rates. FD rates are relatively high, with small finance banks offering rates as high as 9.5%, while larger banks hover around 8%.

2. Sweep-in Fixed Deposit

A sweep-in facility is a novel approach some banks offer to enhance liquidity without compromising returns. This mechanism breaks fixed deposits into smaller units to ensure a sufficient balance in the linked savings or current account. This enables seamless transaction processing while maintaining the interest-generating potential of FDs. This facility is especially valuable for resident Indians, Hindu Undivided Families (HUFs), and private/public firms.

3. Post Office Schemes

The post office presents an array of deposit schemes known as small savings schemes. These post office schemes, such as NSC, SCSS, and PPF, offer higher interest rates and provide tax-saving benefits under section 80C of the Income-tax Act. The government reviews and fixes interest rates on these schemes quarterly. Despite the rise in FD rates, many small savings schemes yield attractive returns.

4. Debt Mutual Fund Schemes

Debt mutual funds cater to risk-averse investors seeking stable income generation. Unlike equity mutual funds, debt funds invest primarily in fixed-interest securities, such as corporate bonds, government securities, and other money market instruments. Choosing the appropriate category is essential based on the duration of underlying securities. Recent regulatory changes have impacted the tax treatment of gains from these funds. Capital gains from debt mutual funds are now added to an individual’s income and taxed at applicable slab rates.

5. Equity Mutual Fund Schemes

Equity mutual funds are tailored for those willing to explore the potential of higher returns in the equity market. These funds invest predominantly in equity stocks, offering actively and passively managed options. Diversified across company size, investment style, and geography, equity mutual funds aim to capitalize on market opportunities. The 65% equity allocation requirement ensures potential for significant growth over time, although investing in stocks demands careful selection and timing.

6. Gold

Often seen as a store of value, gold presents investment opportunities in various forms. Physical gold, such as jewellery and coins, has pros and cons, including concerns about safety and making charges. On the other hand, paper gold, in the form of gold ETFs and Sovereign Gold Bonds, offers cost-effective alternatives with market-based pricing. Gold returns can be volatile in the short term but have historically proven resilience over the long haul.

7. Equity Shares

Direct investment in equities has the potential for substantial returns, albeit with higher volatility. Timing the market and selecting winning stocks require expertise and research. However, over the long term, equities can outpace inflation-adjusted returns from other asset classes. Opening a demat account is a prerequisite for investing in individual stocks.


In the ever-evolving world of finance, individuals have many investment options to consider. While each avenue has its risk-return profile, understanding personal financial goals, risk tolerance, and investment horizon is key to making informed decisions. Diversification, regular review, and seeking professional advice can empower investors to navigate the complex landscape and unlock the potential for financial growth. Remember, the path to wealth accumulation is paved with prudent investment choices.


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