Looking to invest ₹10 lakh in India? Explore the best options across bonds, mutual funds, equities, FDs, and REITs, and learn how to build the right asset mix based on your risk profile and financial goals.
₹10 lakh sitting idle in your bank account is not “just savings”. It’s opportunity. Deployed thoughtfully, it can fast-track your wealth creation journey. And left without a plan, it may simply lose value to inflation or remain underutilized.
But here’s what many investors overlook: the same ₹10 lakh will not be invested the same way by everyone. A 25-year-old with a long-term horizon and higher risk capacity will structure it very differently from a 60-year-old prioritizing capital protection and steady income.
In this blog, we’ll explore investment avenues available to invest ₹10 lakh to deploy and, more importantly, how you can build the right asset mix based on your risk profile, life stage, and financial goals.
Why ₹10 Lakh is a Strong Investment Amount
₹10 lakh is not a casual sum. For many investors, it represents years of disciplined saving, a bonus, business proceeds, or accumulated surplus. More importantly, it is large enough to create real financial momentum.
If you’re starting your wealth journey, this amount gives you an immediate head start. ₹10 lakh can help you build a solid investment base that can compound meaningfully over time. Even moderate returns of 8% to 10% can turn ₹10 lakh into a significantly larger corpus over the years.
At the same time, ₹10 lakh is also large enough to generate steady passive income if growth isn’t your priority. When allocated wisely into income-generating instruments, it can provide regular cash flow while protecting capital.
Now, let’s explore the investment options that can help you deploy this amount strategically.
Corporate and Government Bonds
If stability matters to you, bonds deserve serious consideration in your decision of deploying ₹10 lakh.
Investment-grade corporate bonds allow you to lend money to financially strong companies in exchange for predictable interest payments. These bonds usually carry ratings between AAA and BBB- and typically offer higher returns than government-backed securities, often in the 8 to14% range depending on credit quality and tenure. Higher-rated corporate bonds have lower risk of default and vice versa.
Government securities (G-secs), on the other hand, are backed by the sovereign guarantee of the Indian government. This makes them one of the safest fixed-income instruments available. They include Treasury Bills (T-Bills), dated bonds, and State Development Loans (SDLs). Returns are lower than corporate bonds, from 6.5% to 9.5%, but credit risk is minimal. These bonds may be your ideal choice if capital preservation takes primary priority in your investment decisions.
However, if you’re willing to take measured exposure to equity markets without picking individual stocks yourself, mutual funds offer a more growth-oriented alternative.
Mutual Funds & SIPs
Mutual funds are one of the most accessible ways to participate in equity markets without managing stocks yourself. They pool money from multiple investors and deploy it across shares, bonds, or other securities based on a defined strategy.
If you prefer relatively stable equity exposure, large-cap mutual funds are often considered a balanced starting point. These funds invest in well-established companies and have historically delivered average returns in the 10 to 12% range over the long term.
A popular way to invest in these funds is through Systematic Investment Plans (SIPs). Even if you invest a lump sum of ₹10 lakh, you can stagger it through an SIP route to reduce timing risk.
Regardless of your risk appetite, experts suggest allocating a chunk of your investments to mutual funds as they help balance growth and diversification in your overall portfolio.
If you want more aggressive growth and are comfortable in doing detailed analysis and research yourself, you can explore individual stocks as well.
Equity Markets
Over the past decade (2016–2026), India’s benchmark index, Nifty 50, has delivered close to 14% CAGR. This performance has given Indian equities a relative edge compared to many developed markets during the same period. While past returns don’t guarantee future performance, they reflect the structural growth story of the Indian economy.
You can invest directly in individual stocks for higher return potential or opt for diversified exposure through index funds and ETFs. However, stock picking is not for everyone. It involves company-level research, tracking earnings, understanding valuations, and managing volatility. Poor selection can significantly impact your capital.
Investors with a high-risk appetite, long investment horizon, and the ability to handle short-term fluctuations should explore direct equities.
Equity investments can drive higher returns than debt, but they also come with market fluctuations. If capital protection and certainty matter more to you than growth, fixed deposits provide a simpler and more predictable option.
Fixed Deposits
Fixed Deposits (FDs) remain one of the simplest ways to protect capital while earning predictable returns. If your priority is stability over high growth, allocating a portion of your ₹10 lakh to FDs can bring balance to your portfolio.
FD Interest rates vary depending on the bank and tenure. Small finance banks often offer relatively higher rates, especially for longer lock-in periods. You can choose cumulative FDs if you want interest to compound over time, or non-cumulative FDs if you prefer regular payouts as income.
Furthermore, tax-saving FDs under Section 80C also allow you to claim deductions while earning interest, though they come with a 5-year lock-in.
Importantly, deposits up to ₹5 lakh per depositor per bank are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). This provides an additional safety layer in case a bank defaults.
Note: You can explore the FDs offer by small finance banks listed on Jiraaf for higher returns.
If you want exposure to real assets like property and infrastructure, without the burden of managing them, REITs and InvITs create that bridge between income and growth.
Real Estate Investment Trusts and Infrastructure Investment Trusts (REITs & InvITs)
India’s real estate sector has demonstrated strong momentum in recent years, with residential sales across major cities have risen 77%, nearly doubling in value between FY2019 and FY2025.
However, owning physical property requires large capital, active management, and long holding periods. This is where Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) offer a practical alternative.
REITs allow you to invest in income-generating commercial properties such as office spaces and retail assets. InvITs provide exposure to infrastructure projects like highways, power transmission lines, and renewable energy assets. Both structures distribute at least 90% of their net distributable cash flows to investors, making them attractive for steady income.
With ₹10 lakh, you can allocate a portion to listed REITs or InvITs to earn periodic distributions without directly owning property.
Building the Best Portfolio with ₹10 Lakh Investment
Scenario 1: Aggressive Investor
Profile:
- Age: 25–35
- Long investment horizon (10+ years)
- Stable income
- Goal: Wealth creation & capital appreciation
| Asset Class | Allocation % | Amount (₹) | Rationale |
| Direct equity / Equity ETFs | 40% | 4,00,000 | High growth potential, long-term compounding |
| Equity mutual funds (Large/Mid Cap) | 30% | 3,00,000 | Diversified growth exposure |
| REITs / InvITs | 10% | 1,00,000 | Income + real asset diversification |
| Corporate bonds | 10% | 1,00,000 | Yield enhancement with moderate stability |
| Fixed deposits / Other liquid funds | 10% | 1,00,000 | Emergency buffer & liquidity |
Why this works: Higher equity allocation maximizes long-term CAGR potential while a small fixed-income portion provides stability.
Scenario 2: Moderate (Balanced) Investor
Profile:
- Age: 35–50
- Medium time horizon (5–10 years)
- Goal: Growth + capital protection
| Asset Class | Allocation % | Amount (₹) | Rationale |
| Equity mutual funds | 35% | 3,50,000 | Controlled equity exposure |
| Direct equity / ETFs | 15% | 1,50,000 | Selective growth allocation |
| Corporate bonds | 20% | 2,00,000 | Stable interest income |
| Government securities | 15% | 1,50,000 | Capital safety |
| Fixed deposits | 10% | 1,00,000 | Liquidity & predictability |
| REITs / InvITs | 5% | 50,000 | Income diversification |
Why this works: Balanced exposure reduces volatility while still allowing meaningful growth.
Scenario 3: Conservative Investor
Profile:
- Age: 55–65+
- Shorter horizon
- Goal: Capital preservation & regular income
| Asset Class | Allocation % | Amount (₹) | Rationale |
| Government securities | 30% | 3,00,000 | Sovereign-backed safety |
| Investment-grade corporate bonds | 25% | 2,50,000 | Higher yield than G-secs |
| Fixed deposits | 25% | 2,50,000 | Predictable returns + DICGC cover |
| REITs / InvITs | 10% | 1,00,000 | Income distribution |
| Equity mutual funds (Large Cap) | 10% | 1,00,000 | Inflation-beating growth |
Why this works: Focuses on stability and income while keeping a small equity exposure to combat inflation.
Conclusion
₹10 lakh gives you the flexibility to allocate your funds across various assets, build ladders, employ strategies, and create a balanced corpus, which is its biggest strength. With ₹10 lakh, you can structure your investments around your comfort level and align your portfolio with your personal financial goals.
Remember, there is no single “perfect” allocation that works for everyone, only the ones that align with your goals and comfort with risk. Approach it with a plan, stay consistent, and your ₹10 lakh can become far more than a one-time investment and help you create a foundation for lasting financial progress.
