A Task Requiring Skill and Knowledge

There is a multitude of reasons as to why people invest their salary, be it wealth creation, beating rates of inflation, taking advantage of opportunities, etc. When performed skillfully, investing could provide you with sufficient returns to help you reach your financial milestones. Investing could even pave your road for a financially secure future.

A Few Lucrative Routes of Investment

There are a lot of people who are completely bewildered regarding the sources where to invest money to get good returns. By focusing on certain small investments, people can grow their wealth, achieve their financial milestones, and develop rock-solid financial knowledge. Here are a few suitable ways in which people can best invest their salary to grow their wealth:

1. Public Provident Fund –

A Public Provident Fund or PPF provides the best investment plan for a salaried person in India. A lot of people choose PPF, primarily due to its long tenure of 15 years. Owing to this tenure, the compounding is done on the investment is massive, especially in the later years. Furthermore, withdrawals on your PPF can be performed only after six years, preventing unnecessary withdrawals. As a result, a PPF is often used as a retirement account.

2. National Pension System –

The National Pension System or NPS is another long-term retirement-focused investment route. It is a diverse mix of equity, fixed deposits, liquid funds, corporate bonds, etc. NPS allows people to regularly invest during their working life and withdraw the corpus after retirement to secure a regular income.

3. Mutual Funds –

Mutual funds are perfect for people who want to invest in equities or debt but want a balanced rate of risk and return. Instead of investing solely in a single stock or share, mutual funds allow people to diversify their funds and invest in a wide range of stocks with a single purchase.

4. Savings Account –

A savings account is one of the most common and least risky forms of salary investment. All that you need to invest in a savings account is to put your money in a savings account and allow it to collect interest. However, as it is with the case with other low-risk investments, you will also receive a meager rate of return.

5. Gold –

Investing in gold is one of the oldest means of investment. The prices of gold rise quicker than any other methods of investment. Investing in gold is usually facilitated via the means of several schemes such as gold deposit schemes, gold ETF, gold mutual funds, etc.

Learn more about Mutual Funds for a good personal financial management.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

Trending Articles

Article Links

Financial Advisor

Recurring Deposit vs Fixed Deposit

What is Fixed Deposit

What is a Credit Score

What is a Savings Account

Latest Articles


Income Tax Benefits on Costs of Education under Section 80E

Read More
Posted on 18 February 2020

Is Transport Allowance Paid to Employees Fully Taxable?

Read More
Posted on 18 February 2020

What should you know about switching careers at age 40?

Read More
Posted on 11 February 2020