Growing money effectively is a fundamental financial goal for many. Whether the aim is building wealth for retirement, buying a home, or achieving financial freedom, understanding how to grow money wisely is key. Growing money requires a combination of smart saving, disciplined investing, and strategic planning to maximize returns while managing risks. This article outlines practical ways to increase your money and accelerate growth for a more secure financial future.
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Investment Plans
Generate wealthEarn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^On premiums (under 80C) and on maturity (under
10(10D))
To grow money successfully, start with a clear plan. Set realistic financial goals with timelines and create a budget to save consistently. Putting your money in accounts that offer higher interest or returns than regular savings accounts, such as high-yield savings or brokerage accounts, helps build a growth foundation. Remember, the key to growth is time, allowing investments to compound and grow over the long term.
Investment Options to Grow Your Money
Here are some good investment options to help grow your money effectively:
Public Provident Fund (PPF)
PPF is a government-backed, long-term investment plan known for safety and tax benefits. It offers attractive, tax-free returns and suits risk-averse investors looking for stable growth over 15 years.
Mutual Funds
Professionally managed funds pooling money from many investors to invest in equities, bonds, or hybrid assets. Mutual funds provide diversification, liquidity, and potential for higher returns depending on the fund type.
Fixed Deposits (FDs)
Bank fixed deposits offer fixed returns over a set tenure with minimal risk. They provide steady interest income and are suitable for conservative investors aiming for capital protection with moderate growth.
National Pension System (NPS)
A government pension scheme combining equity, corporate bonds, and government securities. NPS supports long-term retirement savings with tax advantages and moderate to high returns depending on asset allocation.
Bonds and Government Securities
Low-risk fixed-income investments that provide steady interest returns. Government bonds are especially safe and useful for diversification and capital preservation.
Real Estate Investment Trusts (REITs)
REITs allow investing in real estate assets like commercial properties that generate rental income. They offer dividend income and capital appreciation potential with relatively higher risk and volatility.
Infrastructure Investment Trusts (InvITs)
Investments in infrastructure projects like highways and power plants that generate income. These can deliver steady returns tied to large-scale infrastructure developments.
Post Office Monthly Income Scheme (POMIS)
Post Office Monthly Income Scheme is a government-backed scheme that offers a fixed monthly income with safety of principal, ideal for retirees or conservative investors.
Floating Rate Savings Bonds
Government bonds with rates linked to inflation or other benchmarks, ensuring competitive returns with low risk.
Unit Linked Insurance Plans (ULIPs)
ULIPs combine insurance and investment by investing premiums in equity, debt, or balanced funds. They provide life cover along with the potential to grow wealth over the long term with tax benefits.
Pension Plans
These are insurance products designed to provide a steady income post-retirement. Pension Plans help build a retirement corpus through regular contributions with guaranteed or market-linked returns.
Child Savings Plans
Child Plans are specialized investment plans focused on building financial resources for a child’s future education or marriage. They typically offer disciplined saving options combined with growth potential and insurance benefits.
Endowment Plans
Insurance-linked investment products that pay a lump sum on maturity or on the event of death, blending savings with protection. Endowment Plans are suitable for medium-term goals with moderate returns.
Fixed Maturity Plans
Closed-ended debt mutual funds with fixed tenure and known maturity date that invest in fixed income securities. They provide stable returns and are ideal for fixed-income investors.
Systematic Investment Plans (SIPs)
Not a separate instrument, but a method to invest regularly in mutual funds. SIPs help inculcate discipline and benefit from rupee-cost averaging for wealth creation.
Equity-Linked Savings Schemes (ELSS)
Tax-saving mutual funds with a lock-in period, investing mainly in equities. ELSS can offer high returns along with tax benefits under Section 80C.
Establishing a disciplined savings plan by setting aside fixed amounts regularly allows money to accumulate steadily. High-yield savings accounts provide better interest than typical banks, supporting incremental growth.
Invest Early and Consistently
Investing in stocks, mutual funds, fixed deposits, or bonds based on your risk tolerance gives your money the potential to grow faster than simple savings. Long-term investing leverages compounding, where your earnings generate further earnings.
Diversify Investments
Spreading money across different assets like equities, bonds, real estate, and mutual funds reduces risk and increases chances of positive returns in volatile markets.
Avoid or Manage Debt
Debt, especially high-interest types like credit cards, can erode wealth growth. Prioritise paying off debts before aggressively investing, and avoid accumulating new debt.
Explore Passive Income Sources
Generating income through rentals, dividends, or side businesses adds to your principal and accelerates money growth.
How to Grow Money Faster
Below are the ways to grow your money even faster:
Start Early
The sooner you start investing, the more time your money has to compound and grow exponentially.
Reinvest Earnings
Rather than withdrawing profits, reinvest dividends and interest to boost the principal.
Take Calculated Risks
Higher-risk investments generally offer higher returns. Evaluate your risk appetite to invest in options like equities or real estate, which can grow money faster.
Keep Learning and Adjusting
Stay informed about market conditions and review your portfolio regularly to optimise growth opportunities.
Conclusion
Growing your money requires a combination of strategic saving, disciplined investing, and long-term planning. Start early, stay consistent, avoid unnecessary debt, diversify your investments, and take calculated risks to increase your money and achieve financial goals faster.
FAQs
What are the best ways to increase money with low risk?
Low-risk growth options include high-yield savings accounts, fixed deposits, money market funds, and government bonds. These provide steady but moderate returns suited for risk-averse investors.
How can I grow my money with real estate?
Growing money through real estate involves investing in rental properties for passive income and capital appreciation or investing in Real Estate Investment Trusts (REITs) for diversified, less hands-on exposure.
Is diversification important for growing money?
Yes, diversification helps balance risk across asset classes, protecting your investments against market volatility while maximizing potential growth.
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.
Past 10 Years' annualised returns as on 01-10-2025
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).
Generate wealth Earn 1 Cr# in maturity with Zero LTCG tax¶
Double tax savings^ On premiums (under 80C) and on maturity (under 10(10D))
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