6 Best Investment Options For Future Planning

Knowingly or unknowingly, we save every day. You try to save money while bargaining with the shop owner. A child saves by controlling their urge to spend on a fancy item and putting the money in a piggy bank. A mother deposits the extra cash in her storage so it can provide some cash during an emergency. Savings is a part of us. But, if savings are unstructured, it does not lead to capital growth, so people prefer fixed deposit investments.

While it’s true that fixed deposit interest rates in India have tumbled from their highs, it is still a preferred investment option for millions of Indians. But, if you plan to diversify your investment for foolproof future planning, scroll down to know the top-6 investment options in 2021.

The Six Best Investment Options For Future Planning in 2021

1. Fixed Deposit

Fixed deposit investment always tops the list of investment options for future planning. Housing finance companies generally offer the best-fixed deposit interest rates in India. For example, while most banks offer interest rates in the range of 3% to 5%, PNB Housing Finance offers an interest rate of up to 6.95%. Housing finance FDs are rated by credit rating agencies like CRISIL and CARE after evaluating their financial profile. You can securely invest in a company FD with a rating above CRISIL FAA+ or CARE AA. 

2. Government Saving Schemes

The Indian government offers several investment schemes, such as Public Provident Fund, Senior Citizen Saving Scheme, Pradhan Mantri Vaya Vandana Yojana, Atal Pension Yojana, etc. Investors prefer to park their money in these schemes because the government backs them. However, on a comparative scale, the post-tax returns of most of these schemes are lesser than fixed deposit investments. 

3. Monthly Income Scheme

The Post Office Monthly Income Scheme (MIS) is lower than the best fixed deposit interest rates in India. But, investors still flock to this scheme to get an assured monthly income. Unlike fixed deposit investment, you can invest in an MIS for only five years at a time. After five years, you have to withdraw the sum, fill an application form, and reinvest the aggregate at the prevailing interest rate.

4. Equity Mutual Funds

Equity mutual funds invest in large, medium, and small-cap companies. When you invest in equity mutual funds, the fund house issues units proportionate to your invested amount. Equity funds can provide stellar returns when the economy and the stock market are expanding. However, unlike fixed deposit investments, mutual fund returns are not guaranteed.  

5. Debt Mutual Funds

Debt mutual funds invest in money market instruments like bonds, debentures, treasury bills, etc. The funds are less volatile than equity mutual funds and are preferred by conservative investors. Generally, conservative investors invest in a mix of fixed deposit investment and debt mutual funds. The right blend allows them to grow their capital and achieve financial goals safely and quickly.

6. Stock Market

If you are good at identifying companies with tremendous growth potential, you can invest in the stock market. You can hear many stories about rags to riches; but, vice versa is equally valid. Since stock market investments are not as safe as fixed deposits, consider your risk-taking capacity before investing in the stock market. 


The best investment instrument is one that fits well with your financial goals and risk profile. Remember, no investment portfolio is complete without a fixed deposit investment. Hence, while creating your investment profile, consider the pros and cons of each instrument discussed in this article to make an informed decision.