It seems like 2021 will be the year of investments. Many people got tired of these financially unstable times and are looking for additional ways to make money or save it.

Investments are often passive income that you can use just as you please. If you want to save money for your child’s college fund or are thinking of building a retirement cabin you can consider a long-term investment that often yields the best benefit. However, if you want to just buy something small like a new car, an exotic holiday, or maybe have some extra budget to play casino online, you should check a short-term investment even if it’s a little bit riskier.

Figuring out how to invest money the right way can be challenging but with a little bit of research, you can find the best way to increase your budget in no time. If you are a beginner and you are looking for a couple of ideas to invest in 2021, check the ones below.

Equity mutual funds

In the modern era, mutual funds are the preferred investment tool for many investors. As the name suggests, mutual funds represent a share in a company. This type of investment generates much better returns compared to fixed-term deposits or other debt-based investments.

There are two main types of equity funds, large-cap equity funds, and small-cap equity funds. If you are a new investor or you don’t have a lot of time on your hands to keep an eye on your investments, you should go for large-cap equity funds. This means that you will invest in the shares of a large company on the market that was already tested and has a history of generating profit.

If on the other hand, this is not your first investment and you have both the time and the budget to take a calculated risk, you can opt for low-cap equity funds. This means that you will invest in a company that has never made a profit or it’s on the brink of collapse. If your market instincts are good, you can hit a gold mine but you can also lose the investment on a bad decision.

Bank fixed deposit 

Bank fixed deposits are the easiest to understand and the primary way of investing for beginners. The profit is certain and there is also a capital investment to protect you, making this method a low-risk one.

However, the profit is quite small, most banks offering somewhere around 6% for a 2 years deposit. There are also penalties for premature withdrawal of around 1%.

A bank fixed deposit investment is worth it if you have a certain amount of money and you want a guaranteed profit with very low risks. Keep in mind that little deposits will generate little income, so don’t expect to double your investment any time soon.

Public provident fund

An alternative to a banked fixed deposit can be a public provident fund scheme. This plan is mandated by the issuing government meaning that the returns are guaranteed and there are very few risks. The major drawback of a public provident fund is the fact that it has a lock-in period of 15 years before you can withdraw it so we can consider it a very long-term investment.

If you have a spare amount of cash that you are willing to put in a low-risk, guaranteed return investment, public provident funds may be the optimal choice. They can also be owned by minors if a parent operates the account. You can view this type of investment as an ideal money-saving way for future projects like college funds for your child or maybe a retirement house construction budget. If on the other hand, you are looking to make a couple of more bucks for your investment, you should look at other options.

Real estate

Real estate has always been a profitable investment when done right. There are many ways to make a profit out of properties. The simplest one is to buy a property by paying sometimes as little as a 5% down payment and the rest of the cost-plus interest over time. By doing so, you are investing in a property that can potentially double its value by the time you have finished paying for it.

The second way to invest in real estate is to buy a property either through leverage or full cash and offer it for rent generating a smaller passive income each month. The third way to invest in real estate is to invest in trusts at companies that buy and operate properties. This functions just like equity stocks.

No matter which type you choose, real estate can bring you a lot of money, both in the short term and in the long run, however, it’s the riskiest investment among the others.


Since ancient times, gold has been the most used currency but it was only in 1800 when gold really gained its modern financial influence. All nations of the world adopted gold as the standard, changing the value of their own currencies to the price of gold.

Over time gold has been given up and readopted in many countries and finally stabilized in late 1971. Right now it is among the most popular investments, especially since it kept its price fairly stable since the financial crisis of 2008, varying between $20 and $40 a gram.

Gold is seen as a great investment since it’s not directly impacted by interest rates and cannot be printed to control its supply. It has also proven itself to be the most stable financial investment, is considered a safe haven by many investors.

There are two primary ways to invest in gold. The first way is to buy the metal itself from banks, brokerage firms, or dealers in the form of gold coins or gold bars. The second way to invest in gold is to buy stock in a mining company or exploitation contracts. Keep in mind that this way, you won’t get the actual gold but only a share of the profit.

Final Words

If you are looking for a good investment opportunity and you don’t know where to start, any of the options above can be a great choice. All of them are stable enough after the recent market calculations to be viable.

Remember that the strategy is to go for long and medium-term investments in order to get the most out of them and risk the least amount of money. If you are considering an investment that’s far beyond your budget, cut back a little and either save the money or move them towards another investment you already have, to build your deposit.