5 Smart Way To Invest Money In 2020

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Invest the money you expect that this Article will make you a millionaire without working hard, without earning or saving anything then you are in the wrong place?

But if you are like those people who are disciplined and can save at least Rs.500/- per month then today will know exactly what to do to make your money grow. So it doesn’t matter if you can save Rs.500, Rs.5000 or Rs.50,000 per month.


How to pick the best investment option?

Let’s begin. To really understand what will happen to your money, let’s analyze each investment option based on these 3 parameters..

1. Liquidity:

Suppose you have an emergency and need money right away. How easily can you get your money back from that investment is called liquidity.

2. Risk:

It is the possibility that you’ll lose your money.

3: Returns:

i.e how much can your money grow. Let me give you an example. All of us like to save money in the form of cash. Cash’s liquidity is high because when you need it, it’s right there. Risk is low. It’s not zero because somebody can still steal your cash. And returns are negative. See, if you leave your cash in your locker or under your mattress then it is not going to grow. Prices of items will increase, inflation will happen but your cash will remain the same which is why returns of cash are negative. Understood? With that understanding, let’s now analyze the following 5 investment options.

#1.Saving Accounts

A savings account is a basic bank account that allows you to deposit money and withdraw money while earning interest. It is very easy to withdraw money from a bank but because of that, we often get tempted to spend which is why with a savings account, long-term investments become a challenge. Your money is safe with the bank if you pick a trusted bank. SBI gives an interest rate of 3.25% to 3.5% on Savings Account.

how to invest money?

Just chose a bank that you like or trust the most, walk-in to their branch that’s near you and they’ll help you open your Savings Account.


Liquidity is high because you can take out your money any time you want. But every bank has a set number of financial transactions you can do per day.

Risk . zero

Returns. low

#2.Fixed Deposit

A Fixed Deposit is when you give a certain amount to a bank for a fixed period i.e I am not going to touch this money until this period ends and in return you will get a higher interest rate than a regular savings account. For example, SBI FD interest rates range between 4.5% to 6.25%, depending on how long are you giving your money. Are you giving it for 7 days, 3 years or 10 years? Higher the tenure, the higher the interest you will get. Now coming to the parameters.

how to invest money?

all you need to do to set up an FD is to use net-banking or just walk-in to your bank branch.


is medium because there are some banks that don’t allow you to liquidate your FD online. Plus, if you withdraw your money before your maturity ends then you have to pay a penalty fee.

Risk. zero


Returns are low. It is between 4.5% to 7% depending on the bank and how long are you giving your money for. But the main problem with FDs is tracking

#3.Health Insurance

Okay. So this is not a typical investment option, but it kinda is. Here’s how. Life is unpredictable. Tomorrow, if God-forbid you meet with an accident or are recovering from an ailment then the hospital bills are going to be crazy. In such a scenario, you don’t want to beg for money and spend the rest of your life in debt which is why health insurance becomes very important.

how to invest money?

There are multiple websites like PolicyBazaar, Coverfox, etc… that will help you compare health insurance so that you pick the best health insurance according to you. All you have to do is call the executive and they’ll come to your office or your house to get the registration done.

Risk. zero


Returns are enormous because it can save your life or it can save you from debt. All you have to do is pay Rs. 4000/- to Rs. 8000/- every year and in return, you will be insured a sum of Rs. 2-5 Lakh to pay your medical bills depending on the policy you take.

#4: Stock Market

If you are like me then you’ve stayed away from Stock Market most of your life, thinking.. ‘But I am not a CA, what if I lose my money?’ And you are right. Some people have lost everything in the Stock Market but it has also made some people very rich. Stock Market as the name suggests is a market where you can buy and sell shares of publicly held companies. It will be your job to analyze which company might do well in the future and then place your bet by buying the shares of that company. So the risk associated with the stock market is high because if your analysis is wrong and the company does badly then you can lose your money.

how to Invest money?

In order to invest in the stock market, there are many apps in the market Zerodha, investing etc.


is medium because it will take around 2-3 business days to get your money back. But the returns can also be high. Warren Buffett, the 3rd richest man in the world has generated his wealth by investing in the Stock Market, long-term.


Risk associated with stock market is high because if your analysis is wrong and the company does bad then you can lose your money.

Returns. High

#5.Mutual Funds

We just discussed that the Stock Market is a one-person show where you have to make all the decisions. But Mutual Fund is a team-work because a Mutual Fund collects money from people like us. Rs. 500/- from me, Rs. 500/- from you and creates a money pool. A fund manager then uses this pool to invest in stocks, bonds, and other assets.

We don’t have to worry about where it is being invested because the fund manager takes care of all of it for a commission of 0.05% to 2%. You can invest in it one-time or start a SIP (Systematic Investment Plan) where you can transfer a fixed amount to the mutual fund every week, every month or every quarter…your wish. There are a whole lot of mutual funds.

Some are good for short-term investments and some are good for long-term investments which is why the liquidity ranges from medium to high because in general, it will take 1-3 business days for you to get your money back but if you invest in Liquid Mutual Funds then you will get your money back instantly

how to Invest money?

You just need to download the small case app and complete your KYC which is all done on the app without any paperwork. play with it a little bit, and figure out if it’s the right investment for you. The best investment for you depends on what your needs and requirements are.

Liquidity. Madium


The risk associated with Mutual Funds but as long as you do your research, you should be fine.


are medium

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