5 Best Investment Options Other Than Fixed Deposits

When it comes to investing, most people in India start with Fixed Deposits (FDs). They are safe, predictable, and easy to understand. But here’s the catch—FDs usually offer returns in the range of 5–7%, which may not be enough to beat long-term inflation or grow your wealth meaningfully.

So, if you’re looking for alternatives that can give you better returns while still aligning with your financial goals, here are the 5 best investment options other than FDs.

1. Mutual Funds

Mutual funds pool money from investors and invest across equity, debt, or hybrid assets. They are professionally managed and can suit both conservative and aggressive investors.

• Why Better Than FD? Potential to earn higher returns (equity mutual funds historically deliver 10–15% over the long run).
• Types to Explore: Equity Funds, Debt Funds, Hybrid Funds, Index Funds.
• JM Financial Services Advantage: With JM Financial Services, you can explore curated mutual fund portfolios that match your risk profile and investment horizon.

2. Stocks / Equity Investing

Equity markets may look intimidating, but with the right guidance, they can be a powerful wealth-building tool.

• Why Better Than FD? Quality stocks have delivered 12–18% CAGR returns over the years.
• Best Suited For: Long-term investors with a higher risk appetite.
• JM Financial Services Advantage: Their research-driven insights help you identify blue-chip stocks and investment opportunities in over 200+ companies and 15 sectors.

3. Real Estate

Property investment has always been a preferred option in India. While it requires significant capital, it offers dual benefits—capital appreciation and rental income.

• Why Better Than FD? Real estate can generate steady rental yields along with long-term growth.
• Risk Factor: Illiquid and dependent on market conditions.
• Tip: If direct property investment feels heavy, you can also explore Real Estate Investment Trusts (REITs) with JM Financial Services.

4. Exchange Traded Funds (ETFs)

ETFs are baskets of securities that trade like a stock on the exchange. They combine the diversification of mutual funds with the liquidity of equities.

• Why Better Than FD? Lower expense ratios, easy to buy/sell, and better tax efficiency.
• Best Suited For: Beginners who want simple, low-cost exposure to markets.
• JM Financial Services Advantage: Their digital platforms make investing in ETFs fast, secure, and hassle-free.

5. Gold Investments

Gold has always been a trusted safe-haven asset in India. Today, you can invest in gold beyond just physical form—like Sovereign Gold Bonds (SGBs) or Gold ETFs.

• Why Better Than FD? Acts as a hedge against inflation and currency fluctuations.
• Return Potential: Historically stable with 8–10% CAGR in the long run.
• JM Financial Services Advantage: Get access to digital gold and gold-based ETFs seamlessly on their investment platform.

FAQs :-

1. Are mutual funds riskier than fixed deposits?
Yes, mutual funds carry market risk, but they can offer higher inflation-adjusted returns compared to FDs.

2. Can I invest small amounts in stocks or mutual funds?
Absolutely. Through SIPs (Systematic Investment Plans), you can start with as little as ₹500 per month.

3. Which is the safest investment option apart from FDs?
Debt mutual funds, government bonds, and Sovereign Gold Bonds are relatively safer options.

4. How do I choose the right investment option for me?
It depends on your financial goals, risk appetite, and time horizon. Consulting experts at JM Financial Services can help you build the right portfolio.

5. Can I diversify across all these options?
Yes. Diversification is key to reducing risk and enhancing returns. You can combine mutual funds, equities, ETFs, and gold for a balanced portfolio.