When one starts earning then it is expected that one should save for the future or purchasing assets or for the rainy days. It is said that a person should save at least 30% of one's earning and manage with the remaining amount. Some people may be able to save still more that is up to them. In your case you can have some options like PPF account, Mutual funds, Non-taxable bonds, Blue chip stocks, Gold etc. Let us go one by one now.
PPF is a Govt scheme where you get return of about 8% and you can deposit up to a maximum of Rs 150000 per year in the PPF account and same is deductible from your taxable income up to a maximum of Rs 150000 per year. So you save tax also. This is a good scheme and a long term savings plan. Its initial period is 15 years and it can be extended further in instalments of 5 years. The interest earned in PPF account is tax free (Note: Interest earned on bank FDs is taxable).
Generally Govt PSUs issue non taxable bonds for 10/15/20 years duration and the interest earned on them is around 7 to 8% but that interest is tax free. So for people having some surplus money to save, this is a good option. The interest would be payable yearly. Time to time these are issued and one can keep a watch in financial portals. One has to apply for it either online or through physical application form. The old bonds already issued earlier are also available in the stock market and one can purchase them from there also but it requires some deep study as what is the current price and what is the return to the investor. Some advice of the stock market expert would be required in that.
Coming to Mutual Funds, this is a prospective area and one has to select the mutual fund schemes which have a good track record and it would be advisable to invest every month some money in the SIP mode where the risk is reduced due to averaging of buying prices. Anyway, the risk in mutual funds is lesser than that of the shares (stock) and many people prefer to invest in Mutual Funds. Please remember that Mutual Fund investments are to be done from a long time perspective as many times in short periods they do not give us good returns as market sometimes remains sluggish due to various political or commercial reasons. It is to be understood very clearly that Mutual Funds also invest their money in share and bond markets and if share and bond market does not go up how the Mutual Funds would be able to give us return. So invest in Mutual Funds and wait for markets to rise and then only you can think of making a god profit. Different schemes have different tax considerations and one has to check the aspect of Income Tax also before hand. Please read the prospectus of the scheme thoroughly before investing in them.
Gold is an all time favourite of the investors and one can think to buy it also whatever small quantity one can. Now Govt is also issuing gold in form of gold bonds time to time which are more lucrative than the gold itself and I would strongly advise to buy them rather physical gold. Govt also pays some nominal interest of 2.5% per annum on these bonds and they can be sold at market price later. Normally these bonds are for a tenure of 6 years.
Slightly more riskier but having potential for more return is the investment in shares of select top companies in the market. They are known as blue chips and usually would be seen in a first list in BSE daily quotes of share prices. Without any business affiliation with these companies I can very well tell you some names though the list is still bigger. Some of these are Colgate, Hindustan Liver, ITC, ACC, ABB, Cipla, Dr Reddy's Lab, P & G, Dabur, Britannia, Brook Bond, HDFC, Reliance, TCS, Infosys, SBI, Maruti, Pidilite, Godrej, and many more. Seeing their past performance one can try to buy shares in some of them as a long time investment. One should be cautious in investing in share market as sometimes there would be a very dull and low period even for a few years and there would not be any considerable growth in one's investment and one can think to unload the shares at a lower price making a loss but we should avoid that situation and hold them till market rebounds. Remember market would always go down as well as go up and one has to be patient enough to male money from this variation.
Regarding crypto currency though people had some gains in that earlier but I have my own reservations as it does not fall under any Govt or bank or global agency and is something in the internet in online mode only and one has to be very cautious and alert to invest in that arena. Initially it looked much lucrative but now many of the crypto currencies came down considerably from their peak values and we do not know what is the future in that investment.
Knowledge is power.