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What is the Best Investment Strategy Today?


COVID-19 has disrupted what was once normal. It has prompted people to seriously relook their finances and investment strategies. Even those investors who had high-risk appetite have become risk-averse. However, being risk-averse does not mean you have to compromise with returns.

This article skims and scans the five most popular and safe investment mediums – Fixed Deposit, mutual funds, stocks, PPF, and insurance policies, and helps you devise a foolproof investment strategy that can give you the best returns irrespective of market conditions.

The Top-5 Investment Mediums That Can Give Inflation-Adjusted Positive Returns

  1. Mutual Fund

Mutual funds are managed by experienced fund managers who are adept in understanding the ups and downs of the market. As mutual funds are exposed to market risks, to get the best returns, you should constantly monitor your fund and switch between equity and debt whenever required.

As a smart investor, you should invest about 10% of your disposable monthly income in mutual fund Systematic Investment Plans or SIPs.

  1. Stocks

If your stock selection is proper, you can expect much better returns in comparison to other safe investment mediums like FD, PPF, or insurance policies. However, stocks are volatile, risky, and sometimes, unpredictable.

Keep aside 10% of your disposable monthly income for investing in stocks.

  1. Public Provident Fund

Public Provident Fund or PPF is a sovereign-backed long-term investment instrument that investors use to save taxes and earn assured income. However, unlike FDs, PPF has a lock-in period of 15 years, which means you cannot withdraw the entire amount before 15 years from the date of your investment.

Invest about 20% of your corpus in PPF to keep your future secure.

  1. Insurance Policies
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Insurance policies combine investment with insurance and can come in various shapes and sizes. The best of the policies require you to keep investing for 20 to 30 years and get a lump sum amount on maturity. As the mortality charge or insurance component gets deducted from your total investment, the effective returns may be much lesser than on an FD or PPF.

Keep aside 20% of your disposable monthly income for investing in insurance products that  can take care of you and your family in case of an emergency.

  1. Fixed Deposit

Popularly known as Fixed Deposit, this combines the best features of all other investment mediums discussed so far and is the most preferred form of investment for Indians. Other than the high FD interest rate of up to 8%, FDs offer safety, security, liquidity, ease of account opening, tax benefits, and flexibility in paying principal or receiving interest.

To get the best returns from your investment, you should consider investing about 40% of your investment in FDs.

What Does Your Investment Strategy Look Like Now?

To beat disruptions that life has to offer, you should have robust financial strength. An ideal portfolio should be a combination of high-risk high-return instruments like mutual funds and stocks, a low-risk low-returns instrument like insurance policies, and low-risk high-interest instruments like FD and PPF.

Hence, as a smart investor, your investment strategy must have the following things in it:

  • 40% in FDs
  • 20% in PPF
  • 20% in Insurance Policies
  • 10% in Stocks
  • 10% in Mutual Funds


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Opening an FD with a high rate of interest is easier than most other investment mediums. All you need to do is submit a few documents and start getting the FD interest amount credited to your bank account from the next month onwards.

Salman Ahmad
I am Salman Ahmad an Engineer by choice, Blogger, YouTuber, and an Entrepreneur by passion. I love technology in my day to day life and loves writing Tech Articles on Latest Technology, Cyber Security, Internet Security, SEO and Digital Marketing.
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