Top 7 Investment Options in 2021: What Do They Have In- Store For You?

Investment is usually a process where the investor takes up a lot of risk in order to gain a great amount of profit if possible. Investing is an economic activity where investors or individuals put in their assets and resources to some users which are further expected to give profitable returns in the future.

It is usually seen when investors invest their monetary assets and other resources into several business deals and startups which as a result provide them with a share in the profit of the business during its period of work. Investing does not always have the confirmation of positive returns or profits and can instead lead to great losses. Thus, it is a decision that is taken with severe discussion, deliberation, and knowledge of the party who is the owner of the money or assets being put. 

Investment With Its Perks and Drawbacks

things you must know about investing money - open naukri

Investing is also considered while an individual or a group of people save their money in accounts with various banks which gives them the interest in return on a monthly or quarterly basis as decided. There are several types of investments that could be done which also include stocks, bonds, funding, investment, trusts, alternative investment options, derivatives, and commodities.

Each and every sector has a percentage of probable profit and loss which must be considered while making a decision of such sort. One would only like to invest in businesses or endeavors that have high chances of success or are the ones that are more prominent among the customers in the market. No one is held responsible in case of losses in any of the types of investments until and unless agreed upon, before the confirmation of the agreement.

An individual or a company must consider all the factors before investing in something which is great and huge. There are high chances of risks in several projects but there are chances that it is successful and would also provide you with a significant and amazing set of returns. Also, there are some investing opportunities where the risks are quite low and so are the possible returns.

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There exist two types of resources that can be put into investments which consist of financial assets and non-financial assets. Stocks, mutual funds, public provident funds, or bank deposits come under the financial assets while investments of physical gold and land properties are a part of non-financial assets.

Top 10 Investment Ideas In India 2021

types of investment | types of investments with example


There are several investment options that could be considered wisely when deciding on investment amongst which the top 10 or the most considered ones are mentioned and explained below.

  1. Direct equity investments 

This is the type of investment that talks about the stock and have an extremely high factor of risks involved. It might provide you great amounts of profits but could lead to similar amounts of losses or maybe loss of everything that you had put in. This is a sector of investment that is very volatile or unstable and can lead to great profits along with immense losses.

In case one wishes to reduce the level of possible losses that they might face, the option of a stop loss method can be employed by him or her. The stop loss method is where you sign your stocks to be sold at a definite price instead of waiting to rise higher. If you wish to invest in direct equity you are required to be a part of a Demat account or open one for yourself.

  1. Equity mutual funds

This is the section of investments that is related to the primary investment in stocks itself or the direct equity. This requires you to put your money in the fund through SIP or in the form of a lump sum which would further invest the same in several equity stocks in your name. The later profits or losses that might occur would affect the fund’s net asset value.

This sort of investment might help or assist you in getting profits in the longer term by providing you with much higher profit returns compared to debt funds and also because the time period is longer, and the potential of losses terms are considerably low.

  1. Debt mutual funds
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This is an option of investment that is most suitable or profitable for the ones who wish to get stable, steady, and constant returns because of the features or characteristics of less volatility and more stability. The debt mutual funds would provide you with lesser returns as compared to the equity mutual funds but would be safer than the same.

The individuals or companies who are involved in debt mutual funds have a much-priority focus on the fixed interest generating assets like corporate bonds, government schemes, treasury bills, commercial papers, or other money market instruments. But be sure of the fact that though they have lesser risk factors but do not make you get rid of the same. The risk is low but the returns are similar too.

  1. National Pension System (NPS)

This is a type of investment that has been operated and managed by the Pension Fund Regulatory and Development Authority where the investments are done in order to secure the future after retirement which is a long-term benefit. It has a minimum amount that has to be invested annually of Rs. 6000 which is now reduced to Rs. 1000 to allow more people to be a part of it and gain profits.

It is not something specific but has a mixed match of fixed deposits, equity corporate bonds, liquid funds, and government funds among several others. The amount that you wish to invest in this type can be decided on the basis of the level of risk and time the investor is ready to put in.

  1. Public Provident Fund (PPF)

This is one of the investments which are highly prominent for the safety that it provides, the lesser risk factor that it has, and the extremely long time period that it requires. The public provident fund is a type of investment requiring about 15 years of the wait which is the reason for greater returns especially in the last years as the interest rate increases. One must not forget that the public provident fund’s interest rate is renewed and revised on a quarterly basis by the Government of India. This is something that you could invest in if you want low-risk factors and are sure to be a part of a long-term investment.

  1. Bank fixed deposit (FD)
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This is also a type of investment that has lesser risks as compared to those in equity or mutual funds. This is highly prominent and well known in India wherein each depositor is guaranteed a maximum final coverage of Rs. 5 lakhs for both the interest amount and the principal which came into effect from the month of February 2020. Before this time the surety or coverage was about Rs. 1 lakh involving both the interest amount and the principal.

The time period is decided by the depositor according to his or her own convenience which usually ranges from monthly, quarterly, half-yearly, yearly to cumulative interest. This type of investment involves the interest rate that is added to the income of an individual but is also taxed on the basis of his or her income slab.

7. Gold

This has always been the most famous and well-known type of investment, especially in India. However, owning gold as jewelry might have several issues such as the security and high cost, especially the making charges which range from 6 % to 14% of the actual cost. One might consider buying gold coins or paper gold according to his/ her own choice as they hardly have any making charges, until and unless customized.

If an individual wishes to be a part of the investment or invest his own assets in a business or scheme he must make sure of all the risk factors that are involved and what type it is. Some of the types of investments and options that are mentioned and discussed above come under the fixed income and the others under the financial market. You must be aware of the both as each of them have their own perks and drawbacks which could either get you high returns or make you suffer losses in a significant amount.


Karishma is a professional Content Writer and is majorly focused on news articles related to the aspects which hinder the growth at times. She writes articles related to various topics, like technology, government, policies, investments and funding.

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