Best Way to Invest Money In India: Finding Your Perfect Fit

“Buy low, sell high, boss!”
“Put all your money in fixed deposits, betaji!”
“Timing is everything, yaar!”

Ah, the world of investment advice! It seems like everyone has a different opinion on what you should do with your hard-earned money. From your well-meaning uncle to your distant cousin to your gym buddy; when it comes to investing, everyone becomes an expert overnight – and you’ll encounter a deluge of advice that’s as confusing as a Bollywood plot twist.

But a newbie investor does not need advice, rather the answer to a single question-

What’s the best way to invest money (For me)!”

To answer that question, it’s important to answer 3 other questions first –

  1. What are your investment goals?
  2. How much time can you devote to the investment process?
  3. What is your risk tolerance?

Let’s explore this one at a time so that by the end of this blog, you will have a clear understanding of what is the best way to invest money for you.

  • Identify your Investment Goals

Before setting off on your investment journey, it’s crucial to define your goals. Consider the following:

1. Identify Short-Term and Long-Term Goals: What are you investing for? Is it to get your dream bike or go on a luxury Bali vacation? Clearly defining your goals will help you align your investment strategy accordingly.

2. Determine your investment time horizon: Are you investing for the short term (1-3 years), medium term (3-5 years), or long term (5+ years)? The length of time you can stay invested without needing the money you’ve invested, will determine what is the best way to invest money for you.

3. Consider the Flexibility of Your Goals: Are your goals rigid or flexible? Can they be adjusted based on market conditions or personal circumstances? Understanding the flexibility of your goals will help you adapt your investment strategy as needed.

  • Assess the amount of time you can devote for investing

Before you dive into investing, take a moment to think about how much time you can dedicate to the investment process. It’s crucial because investing requires attention and effort. Consider how much time you have to research investment options, monitor your portfolio, and stay updated on market trends. For example, if you are a full time student or working professional who does not have much time to invest, micro investing with Deciml can be a good approach to start with.

Investing is not necessarily a set-it-and-forget-it kind of deal – by honestly assessing the time you can commit, you’ll set realistic expectations and ensure you can actively manage your investments. Remember, investing should fit into your lifestyle, not become a burden. So, find the balance that works for you and enjoy the journey!

  • Evaluate your risk taking capacity

When it comes to investing, understanding your risk tolerance is essential. It’s all about how comfortable you are with market ups and downs and the possibility of incurring losses. Different investments come with varying levels of risk, so it’s important to align your risk tolerance with the right investment options.

For example, stocks have potential for higher returns but also have greater risk associated with it while bonds have lower risk but the returns they offer are also on the lower end.

After contemplating these questions, you will have a clear understanding of where to invest money to get the best returns based on your goals, amount of time and risk taking capacity.

But but …

When it comes to investing, there are way too many options! So, if your question is – “What are some of the best investment options in India for a newbie investor?”. We’ve got that covered as well!

A little note of caution: these are some of the popular options available in the market, and when it comes to investment there is no one size fits all situation. Hence, it is important to assess your goals, risk tolerance, market knowledge and cost before determining the best way to invest.


Picture this: You and your friends are pooling your money to throw a grand party. That’s exactly what mutual funds are! These funds pool money from multiple investors and invest in a diversified portfolio. The beauty of mutual funds lies in their professional management.You don’t have to stress about which specific stocks or bonds to choose; they’ve got you covered.


If investing were a delicious buffet, ETFs would be the ultimate platter, offering a taste of everything without the hassle. Think of them as a blend of mutual funds and individual stocks. Just like ordering from a menu, you can choose from a variety of ETFs representing different assets like stocks, bonds, or commodities. It’s like having a bite of the whole market in a single plate! And the best part? ETFs often come at a pocket-friendly price, making them a budget-friendly feast for newbie investors.


Investing in stocks is like embarking on an adventurous journey. It comes with risks, requires some knowledge, and helps you achieve your long and short term financial goals.

You can think of it as climbing a mountain. The higher you go, the greater the risks, but the breathtaking views and potential rewards make it worth it. Similarly, stocks carry risks as their prices can fluctuate. However, with careful research and understanding, you can navigate the terrain successfully.

To invest in stocks, you need to learn about different companies, analyse their financials, and stay updated on market trends. This knowledge empowers you to make informed decisions.


Peer-to-peer or P2P lending is a method of borrowing and lending money directly between individuals through online platforms, bypassing traditional financial institutions. P2P lending allows you to diversify your investments and potentially earn higher interest rates compared to traditional savings accounts which give around 2-3% interest.

Just remember, like with any lending, there are risks involved. That’s why it’s important to research and choose reliable P2P lending platforms.

For instance, with Deciml, one can opt to invest in a P2P Lending platform called Lendbox which is tied up with an RBI approved recovery agency to help investors deal with defaulters. Additionally, the default rate at Lendbox is just around 1% making it a safe and secure platform.


Micro Investing allows you to invest small amounts, even just a few rupees, into various investment options.

Round-up investing with the Deciml App is one way of micro investing that enables investors to round up their everyday purchases and automatically invest the spare change. It’s like gathering all the loose coins from your pocket (but better because this one would multiply your money instead of just letting it sit).

All said and done – the best way to invest is investing with thorough knowledge. Without enough market knowledge, even the safest investment options are futile because it can lead to uninformed decisions and potential losses. To enhance your market knowledge and make informed investment choices, you can follow these simple steps:

1. Stay informed: Read financial news, business publications, and investment websites to understand market trends and economic indicators.

2. Trust reputable sources: Follow respected financial experts, renowned publications, and reliable investment blogs for valuable insights and expert opinions.

3. Practice with virtual trading: Use virtual trading platforms to experiment with different investment strategies and understand the impact of market movements without risking real money.

4. Learn from experience: Reflect on your investment decisions, analyse outcomes, and keep a record of your portfolio to identify patterns and trends.

Now that you have an idea of your investment goals and different investment options available, you will be able to pick and choose the best ways of investment that align with your goals and financial position.


Should I invest in stocks or bonds?

The decision between stocks and bonds depends on various factors such as your risk tolerance, investment goals, and time horizon. Stocks generally offer higher returns over the long term but come with higher volatility and risk. Bonds, on the other hand, tend to be low-risk but offer slightly lower yet stable returns through regular payments. A balanced portfolio may include a mix of stocks and bonds to achieve diversification and manage risk.

What is the importance of diversification in investing?

Diversification is one of the best ways to invest money as it helps spread risk across different asset classes, sectors, and geographic regions. By investing in a variety of assets, such as stocks, bonds, real estate, and commodities, you reduce the impact of a single investment’s performance on your overall portfolio. Diversification can potentially lower the risk and increase the potential for long-term returns.

What are some common investment mistakes to avoid?

Some common investment mistakes to avoid include trying to time the market, chasing hot investment trends, failing to diversify, and making emotional decisions based on short-term market fluctuations. It’s important to have a long-term investment plan, stick to your strategy, and avoid making impulsive investment decisions based on fear or greed.

What is rupee cost averaging?

Rupee cost averaging is one of the best strategies to invest money to get good returns. It involves investing a fixed amount of money at regular intervals, typically monthly, in a particular investment or mutual fund. The key idea behind rupee cost averaging is that by investing a fixed amount consistently over time, you end up buying more units when prices are lower and fewer units when prices are higher.

Are there any government-backed investment schemes in India?

Yes, the Indian government offers various investment schemes to encourage saving and provide financial security. Some popular government-backed schemes include the:

Public Provident Fund (PPF),
National Savings Certificate (NSC),
Sukanya Samriddhi Yojana (SSY) for the girl child,
and the National Pension Scheme (NPS).

These schemes offer tax benefits and can be a part of a diversified investment portfolio.

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