Top 10 Investment options : for young Indian Investor

written by 

Walter O'brien |  published date : Jan 20 , 2021 

How to Double your Investment

There are no quick rich schemes that can double your money overnight. But it can happen when there is an easy formula to estimate the amount of time taken for your money to get doubled.

The formula is the Rule of 72.

The estimated time period to double = 72/ rate of return.

For example, if you want to calculate, in how much time will Rs. 10,000 become Rs. 20,000 provided that you invest at an interest rate of 8%.

Then the answer would be, 72/8= 9 years.

If you invest in something that gives 24% returns?

72/24 = 3 years only to double your investment

When you are a young professional, you are starting to become independent & money-wise. You start realizing that it is more of a responsibility than fun to handle finances; you learn to pay your credits on time, clear the bills, and spend as much as your salary could let you without making you empty-pocketed. However, you don’t have to live paycheck to paycheck, barely making ends meet.

Besides, you must learn to keep a tab on your income, expenses, savings, and investment. There needs to be a monthly plan for all of these. While savings work as a back-up for rainy days, investments can help you build a fortune over time. You do not need to take out a huge chunk for materializing investments. Going slow and steady can help you build wealth.

Here’s a list of top 10 investment options in India in 2020 :

1. Direct Equity:

Investing in the stock market is a risky affair. It needs knowledge of the market to make good money with an investment in direct equity. If the price of the stock you have invested in goes down, you lose money. You could make investments in different industries and across companies to reduce the risk further.


  • Approx return per year = 18%

  • Years taken to double the investment = 4 years


  • High-Risk factor.

2. Equity Mutual Funds:

Equity Mutual Funds could be a less risky alternative to direct equity. Here, investment is made in a big chunk by fund houses in equity markets. All stakeholders share the results, profit & losses according to the percentage of investment they made. These mutual funds could be actively traded and passively traded.


  • Professional Fund Management.

  • Small Ticket Size.

  • Tax Efficiency.

  • Well Regulated.


  • High-Risk factor.

3. Debt Mutual Funds:

This investment option is for those who do not like the volatile nature of equity and would like to have steady returns from their investments. In a debt Mutual fund, you invest in fixed interest properties like corporate bonds.


  • High liquidity: Debt mutual fund schemes are often seen as an alternative investment to fixed deposits - as they provide income over time

  • Tax efficiency

  • Higher returns


  • The funds holding bonds of long maturities suffered losses, with the average fund losing 7.26%

4. National Pension Systems:

National Pension System is a retirement focused investment which is, of course, long term. When you invest in this option, the governing authority on this fund invests in all sorts of investments like equity, mutual funds, and the like. However, you choose what percentage of the fund goes to equity. You need to invest as little as Rs 1000 yearly to reap the benefits.


  • Approx return per year = 8% to 10%

  • Years taken to double the investment = 7.2 to 9 years.


  • You can’t withdraw before 60 years of age.

  • Thereafter, you can withdraw only 60% which is tax-free and the rest 40% of the corpus is kept to receive a regular pension.

5. Public Provident Fund:

The Public Provident Fund is the ultimate favorite of the masses because it virtually has no risks involved and the interest compounded in the long tenure of 15 years makes it more profitable than most risky investments.


  • More interest rate than bank fixed deposit

  • Returns are tax free

  • Time taken to double investment = 9 years


  • The PPF account can not be closed before 15 years.

  • Partial withdrawal is possible only after completion of 6 years.

6. Bank Fixed Deposit:

A fixed deposit in the bank is a safe bet because under the deposit insurance and credit guarantee corporation, each depositor gets insurance up to 1 lakh and there a lot of options for the cumulative interest like quarterly, half-yearly and yearly options.


  • Interest Rates : 5.75%  to  8%

  • Time to double investment  :  9 years


  • Tenure  :  7 days to 10 years.

  • Min deposit amount Vary from bank to bank

  • Tax benefit On 5-year tax saver.

7. RBI Taxable Bonds:

RBI has 7.75 percent savings taxable bonds. They are issued in demat form and has a tenure of 7 years. They are issued by Bond Ledger account of the investors.​


  • Approx return per year = 7% to 10%

  • Years taken to double the investment = 7.2 years.


  • Interest rate risk.

  • Interest earned is taxable.

8. Real Estate:

This may not be an obvious choice for many youngsters, but it also has huge benefits to be reaped. Individuals could talk with builders and partner with them by investing a small percentage with the total project and receiving the same percentage of profit from the gross.

These are some of the options for youngsters to invest their hard earned money into something profitable which would help them in the long run. Being irresponsible towards saving could cause greater pain in the later years especially after the retirement.  Talking to someone who has experience in investing like someone older in the family could help in making wise investment decisions.

These are tiny steps you take in securing a future for yourself and your family, and this helps you live through middle age stress-free. Since stress is a contributor to deteriorating health, you would also remain healthy and maybe, live a little longer. So, it’s not overstating if you say that saving money is saving some time for the future and maybe buying some.

In conclusion, make investment your priority when you get your salary each month. Keep a certain percentage of your salary reserved for investment that you would not use for anything other than investment. Restraining your expenditure will also make you more conservative on the money, and you would make wiser decisions in your buying and overall improve your financial decisions.

Apart from that, keep a tab of your spending and make sure you don’t buy things you don’t need absolutely. You would only regret buying them later. You see fathers were always right when they warned us against buying stuff we would only use for a day and never look back at or perhaps not even that. So, go out there and live your life; don’t live it poor.


  • Approx return per year = 11%

  • Years taken to double the investment = 6.5 years.


  • Difficult to sell property quickly in case of urgent money need.

  • Returns depend on property, location and other infrastructure developments in nearby regions.

  • A small change in government policy may make a big difference in the valuation of property.

9. Initial Public Offer (IPO)

The best part of investing in IPO is that the money gets blocked only for 7 to 15 days. Prudent investment in a good company coming out with IPO can fetch returns as high as 20-25% over a period of time.


  • Approx return per year = 20%

  • Years taken to double the investment = 3.6 years.


  • Very high risk.

  • Subject to market movements

10. Liquid Mutual Fund

The option carries the least amount of risk and is for persons who have idle money for short period of time.

The mutual fund invests your money in the highly liquid short term instruments like the bank’s CD, T-bills and commercial papers generally with a maturity period of less than 91 days.


  • Approx return per year = 5%-6.5%

  • Years taken to double the investment = 11 years


  • Lower returns when compared to FD.

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