Best Investment Options For Salaried Person In India | Bajaj Finance

Know the best investment options in India. Here are numerous investment options available as fixed deposit, mutual fund & PPF etc. Read our blog.
3 mins
29 August 2023

Young adults who have just started working may not find themselves investing in the future. However, this is the age when you can make some of the wisest investment decisions and create a nest egg for the future.

Investing early in your life can ensure your money grows with time and provides you security in the times to come. There are numerous investment options available for you to choose from, depending on your risk appetite.

Here are a few investment options to consider

Fixed deposits

These deposits can offer you a higher interest rate with more excellent stability.

  1. They offer high stability and security, along with a flexible tenor to suit your requirements.
  2. You can choose from cumulative or non-cumulative FDs. Cumulative FDs provide higher returns, while non-cumulative FDs are good for periodic income.
  3. They may or may not offer you premature withdrawal, depending on the terms of the lending institution. In addition, premature withdrawals could be charged depending on the conditions of the company.
  4. These deposits can be easily renewed after the lapse of the tenor. Sometimes, renewing with the same financial company can also get you a higher interest in your FD investment.

Mutual funds

  1. This option involves investing money in market securities.
  2. These securities are issued on a yearly or monthly basis by organizations seeking to raise cash.
  3. This option can provide you with rates of return ranging from 8% to 9%. This investment option can give high returns in a short period.
  4. However, the returns from this option are not guaranteed and depend on market fluctuations.
  5. You can choose to invest in various mutual funds, like diversified funds, gold mutual funds and more.
  6. Choosing to invest in SIPs monthly may be the most prudent option for you.

Recurring fixed deposit

  1. Working on similar terms as the FDs, this option allows you to invest a sum of money monthly rather than making a lump sum investment.
  2. The interest for recurring deposits is accumulated over the tenor and paid out at the lapse of the tenor.
  3. Premature withdrawals may be prohibited or penalized depending on the terms of your lender.
  4. This option can also offer you higher interest rates.
  5. This option provides safe and guaranteed returns but might not be enough to overcome inflation.


  1. The public provident fund is a safe vehicle for investment provided by the government.
  2. It involves investing in a public government fund, which provides accumulated returns at the end of the tenor.
  3. The tenor for this plan goes up to 15 years.
  4. It is ideal for salaried investors who prefer investment of small sums over a monthly basis.
  5. The investment amount can range from Rs. 500 to Rs. 1.5 lakh, giving you the option to choose what you can afford to invest.

Flexi deposits

  1. These are the same as fixed deposits but with a high amount of flexibility.
  2. The returns from these deposits are guaranteed, and you can choose the tenor.
  3. This option allows premature withdrawal with prior notice. There is no penalty charged over premature withdrawal.
  4. The tenor can either be short term or long term depending on your requirements.

Young professionals who have just started working can invest in any of the options above for short- and long-term gains.

Ensure that you choose multiple means of investment based on your income, your risk appetite and your goals for the future. For example, an FD should be a part of your diversified investment portfolio as it offers fixed returns and premature withdrawal.

Frequently asked questions

Is it OK to invest 50% of salary?

Whether it's appropriate to invest 50% of your salary depends on your individual financial circumstances and goals. While investing a significant portion of your salary can be a smart move to secure your future, it's crucial to consider other financial obligations, such as essential expenses, debt payments, and emergency savings. A well-rounded financial strategy balances saving for the future with meeting current needs. Assess your financial situation, set clear goals, and create a budget to determine the right percentage of your salary to allocate towards investments.

How can I invest my salary smartly?

Smartly investing your salary involves careful planning and consideration of your financial goals, risk tolerance, and time horizon. Here are some steps to consider:

  1. Set Financial Goals: Define short-term and long-term goals, such as retirement, buying a home, or funding education.
  2. Create a Budget: Analyse your expenses and allocate a portion of your salary towards investments.
  3. Emergency Fund: Build an emergency fund to cover unexpected expenses.
  4. Diversification: Invest in a diversified portfolio to manage risk.
  5. Consider Retirement Accounts: Contribute raving and investment for retirement.
  6. Explore Different Investments: Explore mutual funds, stocks, bonds, real estate, and other investment options based on your risk profile.
  7. Seek Professional Advice: Consult financial advisors to create a tailored investment strategy.
What is the 50-20-30 rule?

The 50-20-30 rule is a popular budgeting guideline that helps individuals allocate their income to different categories. It suggests dividing your after-tax income into three main categories:

  • 50% for Needs: Allocate 50% of your income to essential expenses like housing, utilities, groceries, and transportation.
  • 20% for Savings and Debt Payments: Allocate 20% of your income to savings, investments, and paying off debt.
  • 30% for Wants: Reserve 30% of your income for discretionary expenses and non-essential items like dining out, entertainment, and hobbies.

Adhering to the 50-20-30 rule can provide a simple framework for managing your finances and ensuring a balanced approach to spending, saving, and investing. However, remember that personal financial situations can vary, so it's important to customize this rule to your individual needs and goals.


As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.