How And Where To Invest My Salary In India?

By Shatavisha Chakravorty
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    With Industries like IT and BPO progressing by leaps and bounds in the country, the middle class salaried population is on the rise. Now for any person who is a salaried individual, the income is fixed. In most cases, the expenditure for the month is also pre determined.

    How And Where To Invest My Salary In India
    With a bit of planning it is possible to ensure that a portion of the salary is invested such that the returns of the same are reaped in the years that are to come. This type of investment helps one cope up with expected and unexpected expenditures of the coming years.

    While the expected expenditure may range from buying a house or car to your child’s higher education, it is obviously not possible for us to define the unexpected expenditures.

    However irrespective of what the expenditure is the preparation for that is is pretty much the same. Also, it is to be noted that since the money in question is one that is hard earned in the form of salary, it is all the way more important to invest it in the right place so that you make the most out of it and do not regret your financial decisions in the future.

    Here are a few salary investment plans or tips in India. 

    • Stock market

    Investing in the stock market simply means that you purchase the company’s equity. This is done by purchasing the shares of the company. The shares of the company will have a hike or decline in their prices based on the company’s performance. Thus in order to make money out of the stock market you need to know how much of shares of which company must be purchased. If you start investing in the stock market without knowing the basics of finances, chances are that you will lose out on money. On the positive side, with proper calculative decisions (and a bit of good luck of course) one can make a lot of money in the stock market in India.

    • Mutual funds

    Here your investments are much more diversified as compared to what it would have been had you invested it directly in the stock market. Another favorable point here is the fact that here your money is managed by skilled banking professionals. Hence the probability of making mistakes is much lesser as compared to what it would have been had you invested directly in the stock market. This makes it a much more balanced and safer option for investing your hard earned money (as compared to the previously discussed option of the stock market)

    Real estate


    The key to investment in the real estate sector is having good sum of money and the patience to wait for the same to bear fruit. Buying land or property and waiting for the same to increase its monetary value is a good idea because in the Indian scenario it is seen that the returns provided by the real estate sector are higher than that of any other sector.

    Initial Public Offerings

    Broadly speaking when a company wants to sell its shares to the general public it goes for an IPO. They are usually given out at low rates. Once purchased, if the said company makes significant profit, the investor makes his or her share of the same. However there is a certain amount of risk involved here since you lose out on your money if the company is in for a loss. However going by the records of the past few years, investing in IPO is worth the effort and people are seen to earn an excess of over 60% in a single financial year.

    Systematic Investment Plans

    This is a very good investment option for people who get a fixed salary. Here a person has to make an investment of a pre determined sum of money at a given interval for a predetermined period of time. The amount of money and the interval of investment are decided by the investor. This is a very good investment option as it not just gives a good return but also ensures that a disciplined approach is chosen and a certain amount of money is saved regularly.

    Other options 

    One can also consider various other options like gold, which have yielded decent returns in the last few years. 

    Read more about: salary investment mutual fund
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