To become rich soon, invest this Diwali money; 3 top ways you can benefit the most

Along with lights on Diwali, there is one more thing that brings joy to everyone's face, called bonus. No matter how much the bonus is, it brings extra happiness to everyone. However, it is always important to use your bonus in a beneficial way. Diwali bonus should be wisely invested, but the question is where should we invest our bonus amounts. Here are 5 ways to invest your Diwali bonus explained by Vikas Puri, Vice President, Quant Capital.

1. Mutual Funds:

Mutual funds is a right option to invest your Diwali bonus, here are top Mutual Funds suggested by Vikas.

1. HDFC Top 100 Fund
2. ABSL Equity Fund
3. SBI Small Cap Fund
4. Tata Multicap Fund
5. Mirae Asset Mid Cap Fund

Top Balanced Funds suggested by Vikas

ICICI Pru Balanced Advantage Fund
Kotak Equity Savings Fund

The businessmen can invest their money into Ultra Short Term, Arbitrage Funds and Liquid Funds, while they can also withdraw their funds on requirement.

Top Short term Funds suggested by Vikas

1. Franklin India Ultra Short Bond Fund
2. HDFC Ultra Short Term Fund
3. Aditya Birla Sun Life Arbitrage Fund

2. Public Provident Fund (PPF)

The Public Provident Fund is a government backed savings scheme that lets you invest from Rs 500 to Rs 1.5 lakh annually. It serves a 7.9% interest p.a and has a 15 year lock-in period. It also save your tax as you are not required to pay any tax on PPF investments.

3. Senior Citizen Saving Scheme (SCSS)

Two of the Post Office small savings schemes are currently offering up to 8.6 per cent interest rate. Five-year Senior Citizen Saving Scheme (SCSS) and Sukanaya Samridhi Yojana (SSY) are two such schemes offered by post offices that can fetch you handsome returns of up to 8.6% in a year. The current interest rate on SCSS and SSY schemes for this quarter starting from July 1, 2019, are 8.6%  and 8.4% respectively.

Sukanaya Samridhi Yojana account comes in the EEE (Exempt, Exempt, Exempt) tax category, which means that the person receives a tax deduction up to Rs 1.5 lakh on investments made under this scheme. The interest earned during the lock-in period is also exempted from taxes.