Investing 1 crore Indian Rupee in 2023 can be a difficult task for investors, but this post will make it easy to invest. You can earn a daily return by investing your money. You can invest your money in various ways but I will tell you the best 9 ways to invest 1 crore INR in 2023. I can bet that many investors were not aware of these investment ways. I must assure you that reading this post will be very worthwhile. Investing in each of the 9 ways will diversify the risk of investment and also increase the consistent rate of return.
Some of them have a lock-in period which means you can withdraw your investment but some charges will be levied on the total investment amount. You can choose it wisely according to your risk appetite. These types of financial instruments will surely give you a decent rate of return which I will tell you in detail below.
Let’s start your investment journey…
Best 9 ways to invest 1 Crore Inr in 2023:
1. Mutual Fund
Investing in a mutual fund can give you a decent rate of return with less risk as experts invest your money wisely. Firstly they analyze the stock, bonds, and other securities before investing in it.
Do note that mutual fund plans have a minimum lock-in period of 3 years which means if you withdraw your investment before 3 years then it will take a 1% charge on the total amount.
There is a lot of mutual fund company and their plans but don’t worry I’ve listed the best 5 mutual funds with 3-year and 5-year return in percentage (%) which you can consider.
You may consider this as an investment in your portfolio to invest 1 crore Rupee in 2023.
| Mutual Fund Name | 3-year return (%) | 5-year return (%) |
| HDFC Balanced Advantage Fund Direct Plan-Growth | 30.78% | 16.32% |
| ICICI Prudential Equity & Debt Fund Direct-Growth | 31.67% | 17.49% |
| Parag Parikh Flexi Cap Fund Direct-Growth | 24.89% | 19.91% |
| Kotak Equity Opportunities Fund Direct-Growth | 27.11% | 18.27% |
| Mirae Asset Emerging Bluechip Fund Direct-Growth | 26.77% | 26.77% |
- Diversification for risk reduction
- Managed by experts
- Easy buying and selling
- Accessible with low investment
- Transparent info on holdings and performance
- Dividend reinvestment options
- Tax benefits in some cases
- Various fund types for your needs
Cons of mutual fund
- Lock-in period
- Fees and expenses can reduce returns
- Lack of control over individual investments
- Limited customization options
- Possible conflicts of interest
- Sales charges (loads) on some funds
- Not suitable for short-term trading
- Market risk still applies
- Dividends and capital gains may be taxed
- Limited impact on fund decisions
2. Fixed Deposit
A Fixed Deposit (FD), also known as a Term Deposit, is a financial instrument offered by banks and financial institutions that allows individuals to deposit a lump sum amount of money for a fixed period at a predetermined interest rate.
Fixed deposits are considered one of the safest investment options because they offer a guaranteed return on the invested amount along with the principal amount upon maturity. I will tell you the best top 5 Bank FDs with interest rates. You can consider Fixed Deposit as an investment in your portfolio to invest 1 crore Rupee in 2023.
| FD Scheme | Interest Rates |
| RBL Bank Tax Saving FD | 6.55% – 7.05% |
| Canara Bank Tax Saving FD | 6.50% |
| HDFC Bank Tax Saving FD | 6.10% – 6.60% |
| IDFC First Bank Tax Saving FD | 6.50% |
| Axis Bank Tax Saving FD | 6.10% – 6.85% |
- Low Risk
- Safe and secure
- Guaranteed returns
- Predictable interest rates
- Some tax-saving benefits
- Good for people who don’t like taking risks.
- Steady Income
Cons of Fixed Deposit (FD)
- Low interest rates
- Limited flexibility
- Inflation can reduce your earnings over time
- Taxable interest
- Opportunity cost with potentially higher returns in other investments
- Taxable Income
3. Individual Stock
Investing in individual stocks in India is a common practice for both seasoned investors and those new to the world of stock market investments. India has a vibrant and rapidly growing stock market, making it an attractive destination for those looking to build wealth or participate in the country’s economic growth.
The best part of buying individually is that you can even earn 20-30% on the same day also there is no lock-in period which means you withdraw on the same day.
Choosing individual stock is very important as there is a high involvement of risk. You need to study the in detail of the stock before investing in individual stock.
Here is the list of the best 5 blue chip stocks that will give you a good long-term gain and decent dividend return. You can consider these individual company stocks as an investment option in your portfolio to invest 1 crore Rupee in 2023.
| Stock Name | 1-year return |
| Tata Consultancy Services (TCS) | 19.83% |
| HDFC Bank | 2.94% |
| Nestle India Ltd | 20.89% |
| ITC | 28.42% |
| HCL Tech | 41.89% |
- Potential for High Returns
- Diversification Control
- Transparency
- Liquidity
- Dividend Income
Cons of Investing in Individual Stock
- High Risk
- Research Complexity
- Lack of Diversification
- Market Volatility
- No Guaranteed Returns
- Emotional Decision-Making
- Risk of Company Bankruptcy
4. Unlocking the Power of ETFs
An Exchange-Traded Fund, or ETF, is a collection of investments that you can buy and sell on the stock market, much like regular stocks.
But instead of owning individual stocks or bonds, when you invest in an ETF, you’re investing in a collection of different assets like stocks, bonds, or commodities. ETF is best for diversifying the investment and also giving you the best return.
The great thing about ETFs is that they don’t come with any lock-in periods, just like investing in individual stocks. However, it’s essential to thoroughly analyze any ETFs before making a purchase. Below, I’ve listed the top 5 ETFs in India to invest 1 crore Rupee in 2023.
| ETF Name | 1-year return |
| Motilal Oswal NASDAQ 100 ETF | 30.85% |
| SBI ETF Sensex | 15.19% |
| UTI Sensex ETF | 13.83% |
| HDFC Sensex ETF | 4.95% |
| Aditya Birla Sun Life Gold ETF | 17.71% |
- Diversification in one investment.
- Liquidity, with the ability to trade throughout the day.
- Lower expense ratios compared to mutual funds.
- Transparency in daily disclosure of holdings.
- Tax efficiency.
- Intraday trading.
- Dividend reinvestment options.
- Risk management and hedging (buying insurance for your investments to reduce potential losses) capabilities.
Cons of Investing in ETFs:
- Market Risk
- Brokerage fees for buying and selling.
- Price volatility due to market fluctuations.
- Tracking errors with some ETFs.
- Limited active management.
- Potential for overtrading.
- Possible loads or fees.
- Complexity
5. Long-term bond funds
Long-term bond funds are a type of mutual fund or exchange-traded fund (ETF) that primarily invests in bonds with longer maturities.
Bonds are essentially loans that investors provide to governments, municipalities, or corporations in exchange for regular interest payments and the return of the bond’s face value (principal) when it matures.
I’ve listed the top 5 long-term bond funds in India for you. You can consider this as an option to invest 1 crore Rupee in 2023.
| Long Term Bonds | 3-year return |
| Tata Income Fund Direct-Growth | 5.97% |
| ICICI Prudential Long-Term Bond Fund Direct-Plan-Growth | 3.77% |
| Nippon India Income Fund (Growth) | 4.14% |
| UTI Bond Fund Direct-Growth | 9.19% |
| LIC MF Bond Fund Growth | 3.92% |
6. Savings Account
Adding funds to a savings account can give you up to 7% return on your 1 crore which is higher than many bonds and other financial instruments. The best part of holding funds in a bank is that there are very less chances of risk, and the best option is to invest 1 crore Rupee in 2023. Also, there is no lock-in period which was seen in Mutual funds and bonds.
P.S. – Keeping funds in multiple bank accounts will decrease the risk of your capital loss.
Each depositor in a bank is insured up to a maximum of ₹ 5,00,000 (Rupees Five Lakhs) for both principal and interest amount held by him. read more about RBI guidelines
Many of you were not aware of the banks that give up to 7% return so I am sharing some top 5 banks with higher interest rates. Try to diversify your capital in different banks.
| Bank Name | Interest Rate |
| Ujjivan Small Finance Bank | Up to 7% [w.e.f. 13th June, 2022] |
| RBL | Up to 7% [w.e.f. 1st March, 2023] |
| Digibank by DBS | Up to 7% [w.e.f. 1st Feb, 2023] |
| IDFC | Up to 6.75% [w.e.f. 9th March, 2023] |
| Bandhan Bank | Up to 6.5% [w.e.f. 30th September, 2022] |
7. Buying CryptoCurrency
The equivalent of digital money in the internet era is known as cryptocurrency. You can use it to trade or make purchases online using this kind of virtual or digital currency.
However, unlike conventional currencies like the dollar or the euro, cryptocurrencies only exist in digital form and aren’t under the jurisdiction of any centralized organization, such as a government or bank.
Cryptocurrency is highly liquid and it can double your investment in an hour. Also, it is very risky. I’ve listed the top 5 cryptocurrencies you can consider this as a smaller percentage of your portfolio. to invest 1 crore Rupee in 2023.
| CryptoCurrency Name | Market cap. |
| Bitcoin (BTC) | $529.8 billion |
| Ethereum (ETH) | $197.8 billion |
| Tether (USDT) | $83.1 billion |
| Binance Coin (BNB) | $33.6 billion |
| XRP (XRP) | $27.1 billion |
- Highly liquid
- Decentralization
- Security through blockchain technology
- Fast and low-cost transactions
- Ownership and control of assets
- Potential for innovation
- Portfolio diversification
Cons of Cryptocurrencies:
- Price volatility
- Limited regulation
- Irreversible transactions
- Lack of consumer protection
- Potential for fraud and scams
- Lack of insurance for holdings
Disclaimer: Investing in cryptocurrencies in India is subject to heavy taxation. Please be aware that gains from cryptocurrency trading may be taxable, and tax rates can vary. Consult a tax professional for guidance on how to report and pay your cryptocurrency taxes.
8. Buy a rental property
A rental property can generate a return on investment (ROI) through rental income and potential property appreciation. Buy the property at a reasonable price to improve your chances of a higher ROI and set competitive rental rates to attract tenants.
You should Regularly review and adjust rents based on market conditions and property improvements. Over time, the property’s value may increase due to market conditions, location, and improvements, contributing to ROI.
Additionally, maintaining the rental property in good condition is crucial to preserving and potentially enhancing its value. Conduct regular property maintenance and necessary repairs to attract and retain tenants, thereby ensuring a consistent rental income flow.
Pros of Buying a Rental Property:
- Rental income
- Property Appreciation
- Tax benefits
- Portfolio diversification
- Control over property
Cons of Buying a Rental Property:
- Initial costs
- Property management
- Rental vacancies
- Property maintenance
- Market risks
- Reduced liquidity
- Regulatory challenges
Hire a financial advisor
Hiring a financial advisor can be beneficial for maximizing your ROI (Return on Investment) in several ways. Financial advisors have in-depth knowledge of various investment options, tax strategies, and financial planning.
It can provide valuable insights and guidance to help you make informed investment decisions. They will work with you to understand your financial goals, risk tolerance, and time horizon. Also, tailor investment strategies to align with your specific objectives.
Financial advisors can help you build a diversified investment portfolio that spreads risk across different asset classes, reducing the impact of market fluctuations on your ROI. Advisors are skilled in tax-efficient investing, helping you minimize tax liabilities and potentially increase your after-tax ROI.
Pros of Financial Advisor:
- Peace of Mind
- Professional guidance
- Customized financial plans
- Risk management
- Diversification
- Time-saving
- Tax Efficiency
Cons of Financial Advisor:
- Costs and Fees
- Potential conflicts of interest
- No guarantees of success
- Communication challenges
- Dependency on the advisor
- No Guarantee of Financial Success