Investment Options a Salaried Individual Can Explore in 2025
Risk diversifying is one of the motivating factors that can push a salaried individual to look for options that will offer them a return at a low-risk rate. For example, an individual can go for the safest option, like a fixed deposit, where they can get an annualized return of 7-7.5%.
However, an individual can aim to get higher returns at the same risk level once they expose themselves to the sovereign bond, where they can get an interest of 9.5% on their principal investment.
Therefore, the lack of knowledge is preventing the majority of salaried individuals from going for those investment options that will generate a better return. For example, suppose a person has financed a loan from a loan agent and wants to put his other income into some asset that can subdue the rate of interest. In that case, one needs to choose an investment vehicle like stock that can increase the value of the potential return.
Categorizing the Investment Options Based on Risk Profile
There are multiple ways through which the investment profile can be categorized but the best way to do that is through the form of risk. We find many individuals who come from different backgrounds, and they are the ones who decide whether or not to invest in that vehicle. Hence, the investment options can be categorized into terms where it needs to check the risk profile.
- Low-Risk
The first option of investment is the fixed deposit, where the risks are entirely nil, and one can get a modest return that happens to stay as per inflation and beat it in some cases. Investment vehicles like the public provident fund and “Sukanya Samriddhi Yojana” are some of the investment options that one can use for retirement and the welfare of the children.
In these investment options, one can find the return rate hovering between 6.5-8% annually, and that will ensure that the investments are safe and one can protect their capital irrespective of major economic downfall, a these are the secured sources of investment.
- Medium-Risk
The next target is medium-risk investments, where one can use the right investment instruments to aim for higher returns. For example, a person who is investing in corporate bonds, government bonds, and other debt instruments can increase the return p;ercentage of the capital.
An individual who can invest in a government bond can take medium risk but get assured returns, which will increase the return rate for a person.
- High-Risk
The high-risk investment options are linked with the market, and the return is attached to the growth of the economy. A high-risk investment option includes stocks, mutual funds, and ULIP plans, and all are linked with the return of the market.
In this segment, a person can work to build serious wealth, and through this investment vehicle, one can retire freely by having a lumpsum surplus of the amount that can be used for life after retirement.
Investment Options for Individuals Preferring Low-Risk
Investment strategies are something that one can look for in a low-risk profile by choosing funds between profident funds and fixed deposits of the bank. It’s best for the individual who is nearing the age of retirement and they can benefit from this investment amount.
Investment Options for Individuals Preferring Medium-Risk
It’s best for those individuals who are maintaining a high-income profile and still have some age as working years. For them, choosing a medium-risk investment option is something to consider form.
Investment Options for Individuals Preferring High-Risk
For a person who is young in the age for them, it’s best to choose a fund where they can take some risk and make an investment in the market.
An Ideal Scenario for a Salaried Individual
In an ideal scenario, a person who has a salary of around 80k to 1 Lac INR per month for them it’s a choice of how much they can invest so that they can create a corpus which will be used for leisure activities and retirement life.
For a person who has used the finance DSA app to get any loans then for them, it’s important to understand what the things they can cover are, and for them, it’s better to have the right instrument to give them wealth.
These are some of the most common formats through which one can choose an investment vehicle based on the investment profile.
