No money is small money. Yes, you have heard it right! The saying holds true now and forever. In fact, small money always makes big money. Therefore, here are four smart ways that you could adopt to invest Rs.10000 that you saved at month end to fetch you good long-term returns:

Buy a life insurance policy

Your life is very precious for you but is much more precious for your family, especially if you are the sole breadwinner. Therefore, mitigate this life risk by investing now in a life insurance cover. Life cover is one of the best ways you can invest your month-end savings of Rs.10000.

If you are a 25-year-old salaried employee, you can invest in a term cover of Rs. 1 crore for an annual premium of around Rs.10000. This not only helps you secure the life of your family, but will also help you with tax savings in the form of a deduction under sec 80C.

Buy a health insurance policy

In a stress-driven society, health becomes the key word. Medical emergencies do not ask before they strike. They hit your hard-earned savings badly. Therefore, investing in health insurance policy becomes very crucial, especially if you have dependents.

The good news is that you can easily buy a ‘family floater health plan’ for a sum assured of around Rs.5 lakhs at an annual premium of Rs.6000-10000. This will not only help protect your savings in case of medical emergencies, but will also provide you with tax savings under sec 80C. Therefore, it is savings all the way.

Equity mutual funds

If your insurance policies are in place, the next best option for you will be equity mutual funds. Equity SIPs are becoming highly popular these days owing to their high propensity to yield steady long-term returns coupled with the small investment amount every month. Therefore, the next best thing you can do with your month-end savings is to invest it in mutual fund SIP. However, you need to stay invested for at least 3-5 years for the results to start coming in. If you invest Rs.10000 in equity SIP at 12% per annum for a period of 5 years, you will get around Rs.8 lakh and in 8 years, this doubles to around Rs.16 lakhs.

If you always wanted to invest in the equity markets and were unsure about the stocks to invest in and how much to invest, SIP is your best opportunity. Mutual funds invest money in various bluechip and midcap stocks to give you the best returns for your capital. The best part is that even if certain stocks do not do well owing to cyclicality or market volatility, you will not lose much of your capital while staying invested. Thus, SIP a relaxed cup of tea with equity.

Invest your money in Corporate fixed deposit

If you are a conservative investor, put your money in a corporate fixed deposit. Although the returns hover in the range of 7.5-9.5%, you can be rest assured about the safety of your investment. Moreover, your money can be easily liquidated.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.