How to invest your hard-earned money? Smart ways to get started

Earning money involves spending, investing, and saving. A salaried professional or business person usually spends their earnings on meeting their basic needs, and the disposable income they are left with is traditionally invested or saved. When it comes to savings, most individuals focus on particular purpose like buying a car or house, going on holidays or emergencies and the other few have a myopic view to double their money in a short span of time.

In contrast to such widespread practices, to enjoy a stable and secured financial future, sound investing strategy is necessary. Doubling money is something that many people look forward to, and it is not difficult to achieve, provided you have a goal and disciple in investment.

There are various ways to invest and make money; however, it depends on your time and risk tolerance. Money should be invested in tandem with future goals rather than speculative investments with the naive intention to double the money. Investment without any objectives leads to indiscipline in investment. Balanced investments or just one investment with lower-risk bonds can get you good returns. For long-term objectives, investment should be made in instruments with the potential for higher returns. An ideal combination of higher return and safety should form the basis of short-term objectives.

India has emerged as an epicenter of financial activity due to rapid technological advancements, education reforms, heightened awareness about economic advantages, accelerated entrepreneurship etc. Indian economy has witnessed substantial growth in the last decade and the financial stature of the country is backed by several economic and market reforms, FDIs, growth of fintech and other start-ups. India is well projected to become a $5 trillion economy by 2026-27 .

With such a growing economic ecosystem in the country, venturing into investments or personal finance has never been so easy and accessible. Some common investment avenues in India are insurance plans, mutual funds, fixed deposits, provident funds (PF) and small savings accounts, properties, stock markets, commodities, and foreign exchange. Each of these investing opportunities has its features, and it depends on the investors to choose according to their financial goals.

Researching many platforms to invest your hard-earned money as a beginner can be exhaustive. Therefore, we are here to guide you in your journey as an investor. Here are some investment platforms that you can opt for as a beginner.


Insurance plans

If you are new to investment, start with insurance plans, as these can give you a steady source of income. Investors can opt for protection plans like term insurance that offers financial cover to their families in case of sudden death. The other option is Unit Linked Insurance Plans (ULIPs), which provide investors insurance and investment under a single plan. Other plans like health plans, critical illness plans, and accidental insurance plans can also be opted for by investors.


Mutual funds

The last few years have witnessed a trend among beginners investing in mutual funds. This market instrument offers an investor the advantage of investing directly into stock markets under the supervision of experts. Investors are provided choices like equity mutual funds, balanced funds, debt mutual funds, and others. This platform also gives an option based on investors’ financial goals and risk-taking abilities.


Fixed deposits, Provident Fund & other savings

These are comparatively safer options to invest in as these provide moderate returns on investment. Besides, there is safety in it. For decades these forms of investments have helped people in their bad times.



Investing in real estate properties can give steady and decent returns on capital. Even if you build residential or commercial complexes on a property, it will offer you returns in the form of rents.

Investment can be summed up as a journey that should be taken up with clear financial goals in mind. With many investment instruments available in the market, it is advisable that as a beginner investor, you should hire a financial planner or SEBI registered advisor to guide you in the journey. Beginning with the right note will give the best start for a successful journey as an investor.


(The author is Mr. Pranit Arora, CEO & Co Founder of Univest and the views expressed in this article are his own)

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