Individuals who are looking to multiply their returns by investing money on a regular basis should define financial goals and time horizon before investment in any product.

Investment differs depending on the risk and tenure of the investment. Higher the risk, larger will be the reward or loss. However, investments considered for the long term will have a lower risk.

Here are some ways in which you can start investing a small amount regularly and increase or diversify depending on your income and saving ability. We are spelling out an investment of Rs 1000 to Rs 5000 each month.

Recurring Deposits

The best way to invest in small amounts regularly is to look at recurring deposits. These deposits are the best for small investors who do not understand complex saving instruments and advise given by professionals.

Monthly Income Plan (MIP)

Individuals can consider investing in Monthly Income Plans (MIPs) who are looking at steady monthly income though they do offer a variety of options today.

The investment made by mutual funds from MIP proceeds are largely invested in safe instruments, thus ensuring that investors get steady if not guaranteed returns.

Systematic Investments Plan (SIP)

Systematic Investments Plans can be opted by investing in mutual funds. Under these SIPs, one can invest a small sum each month with an investment of as low as Rs 1000.

Stock market

One can open a trading account and start investing in stocks directly with some prior knowledge and help. There are many brokering firms which help individuals to start trading.

Monthly Income Scheme (MIS)

Post office monthly income scheme is for individuals who are less risk averse and looking for safe investment option with decent returns. The scheme is backed by the Government of India and hence there is ample safety.

Chit Funds

In Chit funds, the amount are accumulated by the group of people. These are rather popular among the artisans, shopkeepers and many such businessmen running small businesses.

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