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Tata Capital > Blog > Top Investment Options to Grow Your Idle Funds

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Top Investment Options to Grow Your Idle Funds

Top Investment Options to Grow Your Idle Funds

You work hard to earn your money. Not for it to ultimately sit still in your account. It’s time for your funds to work, too. You see, your idle funds have the ability to grow if they’re invested in the right places.

But what are the right places? After all, today, you have a plethora of investment options to choose from. It’s natural to feel overwhelmed and put off investing your money, if only for the reason that it will not deplete having been invested in the wrong place.

But that’s all in the past now because here we discuss the top seven investment options to help grow your idle funds. Before investing one should consider their risk appetite, corpus of investment in individual product, investment horizon, tax implications, returns expectations, etc. Let’s dive in to know the investment options!

1. Direct Equity

Investing in equity is one of the best ways to grow your idle funds. To invest in company stocks, you need a demat account with a broker.  While over the years, stocks have performed considerably better than most asset classes by offering inflation-adjusted returns, investors must note that these are volatile and don’t offer guaranteed returns.

2. Mutual Funds

This investment option allows you to choose from a variety of categories with differing risk levels. Based on your risk appetite, investment horizon, mutual fund category and fund choice, you can earn better returns. Further, mutual funds help you diversify your investment across stocks, safeguarding your portfolio against market changes.

3. National Pension Scheme (NPS)

This is a long-term investment option that focuses on building financial security post-retirement and is managed by the Pension Fund Regulatory and Development Authority (PFRDA). It includes a mix of assets such as fixed deposits, equities, liquid funds and corporate and government bonds.

4. Post Office Monthly Income Scheme (POMIS)

This investment option is ideal for those who want to generate a steady income at a fixed rate. In other words, if you have a low-risk appetite, this is a good investment option for you. The scheme comes with a five-year term and has a significantly high interest rate as compared to other investment options.

5. Fixed Deposit (FD)

One of the most popular investment options in India, Fixed Deposits (FDs) are low-risk and offer guaranteed returns. All investors have to do is deposit their money in the bank with an assurance of a certain percentage of return on their principal investment once the tenure of the FD ends.

6. Public Provident Fund (PPF)

This investment option is a government-guaranteed scheme that allows you to invest an amount as low as Rs 500 in a financial year. It has a tenure of 15 years and offers you the benefit of compounding your earnings. Once the tenure ends, it can be extended by five more years.

7. Real Estate

This investment option gives you returns in two ways- rentals and capital appreciation. Investors looking to generate funds in the short term can consider putting their real estate up for rent. Further, subject to the location and price appreciation prospects, investors can expect a better return. Lastly, this investment offers high liquidity.

Final Thoughts

While all the above investment options are great to put your idle funds to work and help them grow, it’s important you keep certain considerations in mind to find the ones that work best for you. This includes assessing your risk appetite, analysing each investment option’s tax benefits, determining your financial goals, and ensuring you build a healthy and diverse investment portfolio.

After this, all you need to do is choose a reliable and trustworthy financial platform. For this, consider Tata Capital Wealth. Apart from a wide variety of investment, financing and protection services, Tata Capital Wealth also connects you with experienced wealth managers who help guide you in your financial journey. For more information, visit the Tata Capital Wealth website today!

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