The mantra that works for me is to keep investing simple. By simple, I mean using as little time as possible and achieving the financial goals that are to be met. The first step is to consider what these financial goals are? Broadly, goals are of two types, short term goals – where you want to invest money only for a few months or a year or two before using it for some previously identified purpose. Along with returns, the safety of capital is paramount in this case.

The second type of goal is long term, which spans years or decades and usually is tied to a purpose that can benefit from your money growing and multiplying.

If you want to keep it simple, for short term goals look at bank fixed deposits for the tenure you need or debt mutual funds which have a AAA or highest quality portfolio and average maturity of less than one year.

For long term goals, equity stocks and equity mutual funds are the best option. They are tax-efficient if held for more than a year. They can help you compound your wealth over time. Investing in stocks and funds is a low-cost affair and there is transparency in the process. Moreover, the stock market is a regulated industry and there is some recourse in case things go wrong. Bank fixed deposits and debt mutual funds for short term goals and equity stocks and equity mutual funds for long term goals, are the simplest and most efficient ways to invest your money.

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