When you have surplus money available for investment, there are several options you can consider. Here is a detailed explanation of different investment options to help you make informed decisions:
1. Fixed Deposits (FDs):
Fixed deposits are a popular investment option offered by banks and financial institutions. They offer a fixed interest rate over a specific period, providing capital protection and guaranteed returns. FDs are low-risk investments suitable for conservative investors who prioritize stability and regular income.
2. Mutual Funds:
Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. They are managed by professional fund managers who aim to generate returns for investors. Mutual funds offer various types, such as equity funds, debt funds, and hybrid funds, catering to different risk profiles and investment goals.
3. Stocks:
Investing in individual stocks allows you to become a partial owner of a company. Stocks offer the potential for capital appreciation and dividends, but they also carry higher risks. It's important to conduct thorough research, analyze company fundamentals, and monitor market trends before investing in stocks.
