“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki

The above quote serves as a reality check, an inspiration and a lesson for people from all strata of society. The reality check is that even if a person is earning big, he should not be complacent about it, as his/her revenue stream may dry up.

The inspiration is that one should attain a position and create a system that his wealth is multiplying by itself without his or her intervention.

The lesson here is to understand that all things may end and one should prepare for the worst and place themselves to face such a situation comfortably.

With evolving times, the asset classes themselves have evolved, with many having been conceptualized in the last decade itself, that was unheard of before.

We take a brief look at some investment options for self-employed individuals to consider.

1. Mutual Funds

Mutual Fund is an instrument which is suitable for all types of investors.

A lot of investors prefer them because they wouldn’t have to spend their efforts in researching a particular stock.  For them, it is better to rely on experts who do the same day in and day out. Mutual Funds are again of various classes – equity, debt, hybrid, gold funds, etc.

Now, why these funds are ideal for self-employed individuals is because through mutual funds the investor can put his/her money on a lumpsum basis in a particular fund. And since the instrument is liquid in nature, he or she can withdraw money at any time.

And while they are safer than direct stocks. they give much more returns than government instruments like fixed deposit and PPF.

Again, due to the sheer number of mutual funds in the market, it will leave the investor confused for which fund to invest in.

For this, it is recommended to look at the past performance before coming to a decision.

2.Bank Fixed Deposits

This is the safest bet. Money invested in FDs is assured to return to the hands of the investor, but, at the same time, they provide the stipulated returns as well.

So individuals who do not have a great deal of risk-taking capacity and are fine with lower returns over a length of time can look at this.

Again, when one invests in a fixed deposit, he cannot withdraw it till maturity. There is less liquidity available if we invest in a fixed deposit.

However, a self-employed individual can consider this option if he/she has money in hand which they do not need immediately.

But again, in this case, liquid mutual funds would be a better option.

3. Stocks

The stock market is where countless people have made their fortunes.

At the same time, countless have also drowned their fortunes here as well. Investment in securities of companies listed on recognized stock exchanges is engaged in by millions.

However, to actually gain from this mechanism, one needs to have patience, and understand that a stock market is a place where an investor will get a variety of options to chose from.

Let me tell you this, not everyone is Warren Buffet. If you are planning to invest in the stock market, know that the risk is obviously high and there is no guarantee of stable returns either.

4. Government Schemes 

The Government has many investment schemes in place available for individuals of the country. These options may or may not have tax benefits. Some of them are the Public Provident Fund (PPF), National Pension Scheme (NPS), RBI taxable Bonds,

Sukanya Samriddhi Account, Pradhan Mantri Jeevan Jyoti Bima & Suraksha Bima Yojna, Atal Pension Yojna, and Sovereign Gold Bond Scheme.

You may even try out these schemes, as they are stable and guaranteed by the government. These may also act as a stable income for a self-employed individual.

5. Real Estate

Property has been a preferred option for many cash-rich investors with a long term horizon. Traditionally, investors used to invest in residential or commercial property and rent or lease out the same. Some even couple it with a few extra services and capitalize the gains.

In urban areas, many investors have turned the property into banquets, and have earned tremendous gains from the same, turning into a full-fledged business.

In modern days, the concept of Real Estate Investment Trusts (REITs) has come into the picture where investors put in their money in such trusts either in lumpsum or through the SIP mode and gain returns from the real estate asset class without themselves having to manage the properties.

6. Commodities

Commodities market works similar to the stock market, except, that the focus lies on commodities like gold, silver, oil, grains, etc. instead of equities.

Individuals who are experienced in certain commodities might find investment and deal in these options right at home.


Self-employed individuals have a variety of asset classes to choose from.

They should choose to invest in that asset class which meets his/her goals and at the same time takes care of the concern of liquidity and risk.

A risk-averse investor will preferably avoid investing in a risky investment instrument. Also, one should keep in mind to diversify the portfolio into different asset classes.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww