Mutual Funds are the best way to invest if you are someone who does not understand the intricacies of the stock market or do not have the time to understand it. They give a choice of either investing in debt which is relatively safe or the most volatile combination of shares depending on your choice and your financial status.

Investment planning should be done for a specific goal. Say, you want to save for a child's education and the money will be needed in 3 year's time. The money should be invested in a Fixed Deposit with a bank. It is necessary to decide the goal and then look for an appropriate investment.