Do you want to be rich but lack the idea of where should you invest? Well, you don’t have to be worried much as we are in the following paragraphs, going to discuss all the related things about investment, the definition of investment and different types of investment. In order to understand investment nicely, let us discuss the definition first.

What is Investment?

An investment is an asset or item owned with the goal of having a high return. It is a process, where people purchase assets in the hope that their assets will generate income over a period of time.

There is no guarantee that you will get profit from an investment all the time. Risk and high return are the two sides of the same coin in investment. If you invest at low risk, returns will be also low. On the other hand, if you invest for higher returns, the risk of losing all the assets are relatively higher too.

There are two main different types of investments. They are variable income investment and fixed income investment. Fixed deposits, preferred share and bonds fall under fixed income investment. On the other hand, business ownership and property ownership.

Top 10 useful types of Investment (Informative Analysis)

top 1o investments

An investor usually looks for a way from where they will get sky-high returns as fast as possible. That is why all investors need the best investment options which are little safe and give them high profits. Let us in the following paragraphs discuss the top 10 types of investments.

1. Direct Equity

There are many different types of investments options and Direct Equity is one of them. Investing in stocks is not an easy job for everyone. it is a too risky type of investments. But if you master the art of stock market investing, just wait for a high return.

Many aggressive investors who understand how the stock market works and those who are ready to take high risks usually invest in direct equity. Direct equities are considered risky because of the wide and quick price fluctuations. As a result, one can lose his capital as well. To invest in direct equity, you have to open a demat account first.

2. Bank Fixed Deposit(FD)

Bank fixed deposit is the safest of all when it comes about investment. There is no fear of losing money at all. Each bank depositor is insured up to a maximum rs 1 lakh for both principal and interest amount as per the rules of deposit insurance and credit guarantee corporation (DIGCG). You can fixed deposit your money for many months or years. And after the maturity, you will get interest along with your main capital.

3. Real Estate

If you already have certain amount of money, you can always opt for real estate investment. Investors usually invest in real estate to stay in the house or to earn a certain amount of money by giving the house in rent.

One of the hardest parts of the real estate is that you have to find a house which is 50% off of what its worth. And if you successfully buy this kind of real estate, you will get a decent amount of return. However, it is easy to invest in other types of investments such as the stock market, gold and mutual funds as you don’t have to deal with a bunch of rental properties you have.

4. Mutual Funds

In different types of investment, Mutual funds can be a great option for you. A mutual fund is usually a pool of funds from many investors differentiated into many different things including stock, bonds and other various assets. Mutual Funds are usually operated by money managers who invest investors money and attempts to get good returns. But mutual funds also have many drawbacks and one of them is that they don’t always make positive returns. But as an investor of this particular mutual fund, you have to pay a percentage of your money to the manager. Still, when it comes about high returns, it is one of the best types of investments you can opt for.

5. Life insurance

If you are searching for the safest types of investments plans in the long term, you can invest in a life insurance policy. You have to invest a particular amount of money for several years and after the maturity, you will get all your money with a significant amount of interest. One huge benefit of life insurance is that if policyholder suddenly demises due to accident, the family will get the full money.


In different types of investment, cryptocurrencies are the whole new option. Bitcoin is the most famous cryptocurrency from others. It is a digital currency that does not have any government backing. You can buy and sell cryptocurrency on Cryptocurrency Exchange. Some retailers even offer to buy products from them with Cryptocurrency.

7. Public Provident Fund

In different types of investment, a public provident fund could be the best option for you. One of the best benefits of PPF is that the interest earned and maturity will be completely tax-free. But one problem is that Public Provident fund has a tenure of 15 years. This could be quite a long time for someone.

8. Gold

In different types of investment, gold can be the safest option for you. People usually posses gold in the form of jewellery. Gold usually gives high return but one drawback of this is that you have to pay a little on making charge. To avoid this, you can buy gold coins. You can even own gold ETFs which is paper gold.

9. Senior Citizen’s Saving Scheme (SCSS)

If you are a retired person or going to be retired soon, in different types of investment Senior Citizen Saving Scheme is the good option. As the name suggests, only senior citizens above the age of 60 can invest in the scheme. This scheme can be availed at any banks or post office. SCSS has a tenure of 5 years and it can be extended to more 3 years if the account holder wants. One huge benefit of the scheme is that it offers 8.3 percent interest.

10. Bond

In various types of investments, a bond is a form of a loan. The holder of the bond is lender and borrower of the bond is the issuer. And the available coupon is the interest. Bonds are primarily issued by public authorities, companies or credit institutions.