2 Wise Options to Invest with little money in India

When I was working, I had no idea on how to invest money. My friends generally give a suggestion, “Go and invest in an LIC policy”.

And I kept on investing on LIC policies blindly, and after several years, there were too many policies on my table. And the sad part is, I’m still figuring out what each policy is all about.

So, my dear friends, please don’t invest your hard-earned money blindly hearing your friend’s opinion. It may not hurt now, but it really hurts at a later point, especially when you start doing your financial planning for you and your family in future.

Here are the safe, best and low risk investment options compared to all other options like LIC policies, Fixed deposits etc

Public Provident Fund (PPF)

PPF is one of the safe, low risk and best investment options. The benefits are huge, and completely exempted from income tax.

Public Provident Fund (PPF)
Public Provident Fund (PPF)

National Savings Certificate (NSC)

invest with little money in India
National Savings Certificate (NSC)

Related: 6 Must – Knows for First Time Home Buyers

Prabha is a User Interface Designer (Software design) + Entrepreneur, and a passionate home organiser. She was a spendthrift until she came across the book 'Millionaire next door'. In fact, this (the book) was her turning point towards frugality and financial freedom. Read more

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    I like your blog design.

    There are three things to expect from any investment
    – investment should compound money at a rate faster than inflation, and withstand the tax impact.
    – should be able to liquidate it if we need.
    – there should be some degree of safety for the capital

    The reality is we get either two of the three at the max.

    – Real Estate compounds okay, it is relatively doable by any common man, but does not liquidate well in an emergency.

    – Gold, FDs, PPFs, NSC are safe, but in my opinion do not compound at a rate significantly better than inflation, and the lock-in period in the case of PPF, NSCs is a let down.

    – stocks compound well, stocks are easy to liquidate but one should have the temperament to stomach huge price fluctuations, and be smart enough to prevent permanent loss of capital.

    We should be exposed to all three at a relative younger age. We may make mistakes but that’s how we can learn.
    In middle class families, kids are taught to study hard, and get an employment but we are not taught how to invest the money.
    Imagine figuring out investing when you are given a lump sum at the time of retirement.

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