3 Best Investment Options For Salaried Employees in India


We all know money plays a vital role in our daily life, but managing and handling it is also very important. Everyone should invest as soon as they start to earn. For the salaried employees in India, they have fixed income flow every month than the self-employed or the professionals. Having a fixed monthly salary has lots of advantages than the risky and volatile income of self-employed or daily wage persons. For some people having a 9 to 5 job may not sound fascinating but getting a fixed monthly salary will for sure build a strong financial backbone. Taking an advantage from invested money only applies when you know the right investment options available. To do this we need to have a strong knowledge of what is an investment and how it will benefit us in the near future.

Young salaried employees may not find themselves in investing some portion of their earnings for the future. This is indeed an irony that the unemployment rate in India is increasing with each passing year. People who have decent jobs do not know where and which one is the best place to invest their portion of salary. 

Disclaimer: The author of this post is also a salaried employee in an Indian company. This is not a paid or sponsored post. So, any reference or example in the post is personally tried by the author. Here we need to clearly understand that no comparison shall be made as the choices vary from individual to individual. 

Reasons For Salaried Employees to Invest Money 

Ready for Emergencies: Any medical emergency can put you in a serious financial crisis. That will affect you mentally as well as financially. If you invest wisely then you will have security for money reserve to cope up with the financial crisis. 

Financial Securities & Backups: Like a medical emergency, any unwanted emergencies can put you in a serious financial crisis. When you invest, it will act as a real source of security and you always know there is some money security is right behind you. 

Always Ready for Achieving Goals: When you have piled up the list of goals like purchasing a car, house, marriage, etc. Systematic investing is always useful in achieving these goals. 

Wealth Creation: As we all know wealth is only created when your earned money grows exponentially. When you choose the right investment option your money will grow. 

Main Obstacles in the Investment Decisions

The first thing to blame is the culture where market investment is still considered as gambling. The only considered investment option is either bank account savings or the precious metal savings.

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Second thing is to blame is the lack of knowledge and education system that does not encourage us regarding the pros and cons of Investment options that anyone should consider while entering into the earning phase of life. 

It’s Not Too late for Investment 

If you are smart then you should consider some portion of your paycheck in future investing. Investing at a young age gives time for money to grow and work as security in the future. For salaried employees in India, there are a plethora of investment options to choose from. Below are some best options available for salaried employees in India:

Mutual Funds

We all have heard about it but did not know what exactly Mutual funds are. Mutual funds are simply professionally managed funds and these funds are used to purchase the securities by the professionals. This investment can be for a monthly or yearly basis. When you are looking for the balance between money growth and security, Mutual funds investment is considered to be the best option for the salaried employees in India. Mutual fund is a kind of index fund and you can learn more about index fund at thestockdork.com 

Disclaimer: Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing

Paytm Money: This Mutual Funds App is one of the best and easiest apps available on play store. With this app, investors got access to a diverse portfolio and a minimum of ₹100 can be invested without any hassle. I am personally using this app because the payment process is very simple. You can easily add any of your bank accounts to pay and receive the money. They have an easy to use dashboard, where you can filter and find the right mutual fund investment portfolio. A newbie can easily analyze the chart to get 8-10% returns monthly. 

I buy new mutual funds by simply analyzing the growth over 6 months and spend 15k monthly. Getting a return of 7 to 10% is not a bad deal. So, monthly Getting ₹1200-1500 is not a bad idea without doing anything. After getting the profit, withdraw the full amount including your profit.

Investing ₹15000 will give a total of ₹16200 to 16500. The duration of investment will depend on you for me monthly or quarterly investment works. 

Advantages of Mutual Fund Investment

  • It requires a small sum to investment.
  • Less risk in money loss.
  • Good for long term as well as for short term investment.
  • Automated payments.
  • It has a very quick and painless investment process.
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Public Provident Fund

It is one of the safest funds amongst the other investment options available, as it is backed by the Government of India itself. When you are willing to ride the vehicle of investment for your future, the Public Provident Fund is one of the safest vehicles to ride on for investment. With an 8% return compounded annually and a locking period of over 15 years, PPF is the best investment option for the salaried employees in India. It is perfect for investors like salaried employees in India who are willing to spend a small amount of their salary in Investment.

The 8% return rate is not fixed as the ministry of finance revises the rate on each financial quarter. A maximum of ₹1.5 lakh in a financial year can be invested and the minimum amount is ₹500. 

Advantages of Public Provident Fund

  • PPF qualifies for Tax benefits.
  • You can use PPF account for Bank loan business plan.
  • Lock-in period to grow your money.
  • Low risk in Investment.

Be A Local Angel Investor

This is indeed a new idea but it requires lots of effort. Here the basic idea is to find the local businesses that requires funding. We need to keep in mind that it requires lots of trust between the parties. Below is the base to become a local angel investor:

  • Growth analysis is a must in this type of Investment.
  • Requires a strong trust between the parties.

You need to find the local business that has potential to grow. It can be a local shop, IT company, boutique store, etc. Those businesses that have high potential in growing can be used for investment. The chances of getting a return from this investment is very huge, make sure to do all the legal documentation to agree on the terms. With your investment, it will be a win-win situation for both the local business and the investor.

Advantages of Becoming Local Angel Investor

  • High return on the investment
  • Beneficial for both business as well as for the investor


For the salaried employees in India, there are more other ways to invest the portion of paycheck like SIP, fixed deposits, national pension system, savings account interest rate, etc. They can go for either short term or long term gain. It is advisable to choose multiple modes of investment rather than relying on only single method Consider all the scenarios like risk, the term of investment, etc in mind.