how Indians make money in investments

What are the types of investment products in India  available to Indian investors or general public.we will discuss  them one by one.They can be divided in two groups fixed income products and market based.


1.Bank Fixed  Deposits –  As their name suggests its a time deposit with banks .Rate of interest varies from 4 to 6 % for now.

2.Public provident fund- These deposits are maintained at either banks or post offices and the interest is decided by small saving organisation every year. The interest earned on this deposit is totally tax free. This is for longer period of 15 years .The facilities of loans and withdrawals after certain period of time makes it attractive .current rate of interest is 7.1%.Post tax returns becomes higher as you save income tax also on deposits.

3.Senior citizen saving account- This is a deposit scheme of government for senior citizens. it can be done at both banks and post offices.The time duration for this scheme is 5 years.Current rate of interest is 7.4%.

4.Sukanya samridhi account- It is special deposit account for girl child and it can be opened till the girl child completes 10 years and the maturity is after   21 years from the date of opening of   the account. current rate of interest is 7.6%

5.Post office deposit schemes- There are several deposit schemes like Monthly income scheme, fixed deposits and similar kinds.
These are simple deposit schemes where you put  in a deposit and expect to be paid back at contracted rate on completion of term.

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Although for point of view of risk, these are great products but very poor at generating inflation beating returns.


Those who can  understand better the risk associated with investments beyond these instruments can go for further more diversification and better returns.These investment products in India are as under

6.Mutual fund debt schemes- Mutual fund debt schemes do not promise fixed return.But at least one can have a fair idea of the returns we can expect. so the returns are generally better than fixed deposits Risk is little more these days in turbulent market conditions.

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7.Mutual fund equity schemes- These funds invest your money in  shares of companies in stock market and the returns can fluctuate wildly. It has been observed that over a longer period of time the returns beat all the other investments.

8.Shares/stocks- you can directly invest in shares/stock in the exchanges, you just need to have a demat and trading account and you are good to go. Returns can be very good over a longer period of time. you have to pick good stocks at right prices. 

9. Crypto/Bitcoin -These type of assets are at present in regulatory no mans land.No clear tax rules. These investments fluctuate greatly.We have to be very careful with investments in this space.Returns can swing wildly between +100 % to -100 % or more also in a day too.

These are the ways Indians invests for making money .All these investment avenues can be explored by you for making your investments as per your risk profile.

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