The financial security of an individual and household usually starts with taking control of and mastering the finances. Rightly so, as money is typically the most ignored aspect, especially in Indian families, it remains untracked even though a lot of planning goes into devising how and where to spend it. 

Sadly, while expenditure acquires the maximum focus, savings and investments, two crucial personal financial instruments, remain tucked in hindsight. To say the least, not many people are aware of investment as a critical instrument for financial well-being even today.

Also Read: How Disciplined Financing is Your Gateway to a Secured Future?

But well, it’s almost the middle of the year, and we can’t stress enough the importance of parking your funds in the right instrument of personal finance. More so, today’s the time when financing has acquired critical importance due to disrupting economic cycles.

Optimized utilization of financial instruments that fetch the highest ROI has thus become crucial for a secure financial future.

Here are some proven financial instrument examples that have remained potent in generating high ROI over the years and prevailed as some of the best in 2022.

Just so you better understand these instruments, all of them can be identified either under savings or as investments.

Equity-Traded Funds or ETF

ETF is an investment instrument that deals in a mixed bag of stocks and securities listed on recognized stock exchanges. Such funds are usually made of investment options like bonds, currencies, stocks, and commodities.

One can invest in these funds either individually or choose a mixed basket of a portfolio comprising these securities to best match the market trends.

ETFs are usually low-cost investment options that bring returns proportionately as per the selected investment basket. They are easy to purchase with diversified management of index funds.

One should choose ETFs if they plan to generate returns in the long run. It is ideal to go for ETFs if you have at least a decade of earning capacity remaining before retirement.

Individual Stocks

Individual stocks are a part of personal financial instruments that continue to remain popular for their high ROI generation capacity. While it is true that they involve high market risks, their ability to generate returns is nearly unmatchable if you are investing under a professional advisor.

However, individual stocks may not be the first instrument to go for while taking baby steps in the world of investing. That said, stocks may be just the right instrument to generate high returns if you hold a diversified portfolio. 

If you choose equity allocation based on your age, the reward and risk involved can be balanced out over the years. 

For instance, if you are early in your career, it can be suitable to allocate most of your stocks in equity. You can then diversify the remaining stock investment into market instruments offering stable returns.


While the investment markets remained abuzz in early 2022, the Indian Government’s tax imposition on digital assets cleared the air regarding cryptocurrency’s uncertainty.

The adoption of cryptocurrency as a crucial investment tool has surged lately, with volatility as the prime concern. 

However, such a risk is gradually subsiding with cryptocurrency’s increasingly popular and widespread acceptance as a significant alternative investment tool.

Not to mention, people often turn to cryptocurrency for high return generation, especially amidst periods of major stock market volatility.

Real Estate Investment Trusts

Popularly known as REITs, Real Estate Investment Trusts are tools that allow indirect investment in the real estate industry for high ROI generation.

Through REITs, one can invest in various real estate holdings to generate mixed returns, which generally balance out the highs with the lows. 

Some popular ones that generate dividends include hotels, residential properties, commercial spaces, malls, etc. Given that real estate is a stable market with usually high returns, one can expect to earn pretty decently if the funds are parked for even 5 to 10 years into these personal financial instruments.

The investor also has the option to choose between private and publicly traded REITs, further enhancing convenience.

However, if you are looking for quick liquidity, these investment instruments might not be the right fit as the REIT trading market is quite stiff.

Mutual Funds

Mutual funds are another excellent example of suitable financial instruments that can sustain their growth through the year 2022. If one has just stepped into the world of investment, mutual funds can be the right place to start with. 

It is because the investment basket under these instruments is thoughtfully diversified with differing bags of high and low-risk plus return stocks, among other tradable assets.

These are also one of the best instruments that hedge the investor against increasing market volatility via carefully segregated investments while generating decent returns. 

As mutual funds are available across different stock baskets, timelines, and risk portfolios, you must choose your fund after considering the return type you seek and your plans for long-term or short-term investment.


Bonds can be your safest bet if you do not want to undertake any risk for return generation through your hard-earned money. Even though they are investment tools, the closely definite returns they provide lend them characteristics of savings instruments. 

Bonds issued by the government or municipalities can be the best investment tools for those carrying low-risk appetites. As the returns generated are near definite, parking your funds in bonds also aids with annual financial planning. 

However, you may want to steer clear of heavy investment in these instruments as the ROI, even though consistent, comes at much lower rates than market investment possibilities, thus limiting the total earnings.

Public Provident Fund

A typical savings instrument, PPF or Public Provident Fund, is a popular tool for generating set returns at high rates under the savings segment. The tenure of PPF can extend up to 15 years.

As the interest accumulates at a decent rate and compounds month on month, the maturity value can become a significant corpus if funds are parked in this personal financial instrument.

National Pension Scheme

When looking for retirement-focused financial tools, the National Pension Scheme or NPS can be the right fit to set your funds aside for maturity. The scheme is managed by the PFRDA and can be started with a contribution as low as Rs.1,000 annually.

The NPS corpus can be created as a mix of corporate bonds, government funds, equity, fixed deposits, and other assets. Therefore, you must choose the NPS type based on your risk appetite. Accordingly, the returns vary too, with high-risk corpus attracting high returns and vice versa.

Fixed Deposits

One of the longest prevailing savings instruments, fixed deposits carry the potential for generating remarkable returns over their period of maturity.

As zero-risk financial instruments, they generate enough returns. FDs are a must-have in one’s portfolio of personal financial instruments if aiming for high returns over a long duration of time. 

As fixed deposits attract interest accumulation at compounded rates and have long maturity tenures, one can look forward to withdrawing a large corpus by the time this deposit matures.


To strike the best balance between risk and rewards, creating your basket of personal financial instruments with the right mix of investment and savings tools is ideal.

Know your risk appetite to select the right investment tools. Accordingly, set aside portions of your income that earn risk-free returns for long-term wealth creation and financial security.

All in all, a professional advisory is always discernible when investing to better manage associated risks.

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