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How To Guide

How To Invest Your Surplus Money

Eager to invest your surplus money but don’t know where to start? Read this blog to find out the top ways in which you can invest your surplus money in India.
April 18, 2024

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A surplus is any amount of money that’s left after accounting for all your monthly expenses. Maybe you’ve received a neat bonus from your company or seen a sudden windfall in the form of inheritance.

Either way, it’s important to figure out what to do with the extra money that you’ve got. Truth be told, most people may find this to be difficult due to a lack of financial knowledge, temptation to splurge, or both. You can consult a Cube Wealth Coach or download the Cube Wealth App.

Lucky for you, we’ve compiled a list of ways in which you can put your surplus money to good use. Let’s start by answering the most important question - what to do with surplus money?

What To Do With Surplus Money?

You may be faced with 3 broad choices when it comes to doing something with your surplus money. You can either:

1. Invest

2. Save

3. Splurge

If you’ve landed on this article, it probably means that you’re more interested in knowing about #1 and #2. That said, saving your surplus money by parking it in a bank account is counterproductive. 

The reason being the average savings account interest rate is 2.5% while the inflation rate is close to 5.5%. This means that you’re effectively losing 3% of your savings every month. 

Investing fixes this problem. More precisely, investing in the right assets can help you outperform inflation and grow your wealth for the future with lucrative returns. 

Where To Invest Surplus Money?

There are multiple ways you can invest surplus money. Let’s take a look at the top 5 investment options among them.

1. Mutual Funds

Mutual funds are a potential option to invest the surplus money that you have at your disposal. A top-notch mutual fund like the ones on Cube can fetch you anywhere between 6-15% returns. 

But wait, there are other benefits as well. Mutual funds have the potential to compound and become a source of passive income that can fulfil future expenses. 

For example, you can use that passive income to pay for your Netflix subscription or post-retirement expenses. This would, of course, depend on the size of your portfolio and the quality of funds in it.

Have a surplus and want to invest it in mutual funds? Use Cube’s lump sum calculator to visualize the potential returns you can earn.

2. Alternative Assets

Alternative assets are non-traditional investment options like P2P lending and asset leasing. They’re non-traditional because they’re generally up-and-coming or have only recently been regulated.

Let’s take P2P lending for example. You can lend directly to borrowers and earn solid returns (between 8.15% to 12% on Cube) without paying a hefty share of your profits to a middleman (like banks).  

Asset leasing is different from P2P lending. In Asset leasing by Grip, for example, you can become a co-investor in physical assets that are leased to top-tier organizations like Ashok Leyland and Furlenco.

In either case, you can use the surplus to smartly diversify your portfolio and earn better returns than an average bank savings account or fixed deposit. 

3. Stocks & ETFs

Stocks can be bought for a relatively low minimum amount and have the potential to generate lucrative long term returns. Some stocks can be multi-baggers (100x or more returns) or may pay dividends.

That’s why investors have been known to invest their surplus in solid stocks for higher gains and passive income. In fact, Indian investors need not limit themselves to Indian stocks, they can go international.

Apps like Cube allow you to invest in US stocks like Apple, Amazon, Google, Microsoft, Tesla, and others from India. That’s one of the most effective ways to put your surplus money to use.

But it’s important to tread carefully when it comes to direct stocks, regardless of geography. Direct stocks are more prone to volatility than mutual funds and alternative assets. 

Here’s where world-class advisors like Purnartha or Rick Holbrook come into the picture. They can help you buy stocks with your surplus money based on your risk profile and investment goals. You can consult a Cube Wealth Coach or download the Cube Wealth App.

4. Digital Gold

Gold is a classic Indian investment option that has a new twist to it in the form of digital gold. It’s for those who want to benefit from the returns that it offers instead of using it as jewellery. 

Digital gold offers similar benefits to physical gold like returns and assured purity without the downside of security or storage concerns. It’s a suitable option for those who want to diversify their portfolio.  

5. Cryptocurrency

Cryptocurrency is one of the hottest new investments on the block. While there are concerns over regulation and other aspects of it, there are obvious benefits to investing in the right cryptocurrencies like:

  • Potentially high returns
  • Decentralization
  • Greater accessibility
  • Easy transactions

That’s why crypto may be a potential investment option for those who want to diversify their portfolio using their surplus money by adding something new and exciting without burning their regular income. 

How Do You Invest Surplus Income?

The best way to invest your surplus money is to talk to a trained financial professional or advisor first. Let’s take a step back and understand why.

Your investment options may be limited in case the surplus money isn’t a sizable amount, say less than ₹50,000. But selecting the right mutual fund, for example, would help grow that ₹50,000 into something bigger.

On the other hand, a bigger surplus, say ₹10,00,000 carries concerns of its own. There’ll be too many investment options to start with and you’d have a lot to lose if you select the wrong asset. 

Thus, it’s always beneficial to talk to trustworthy financial advisors before investing your money, even if it’s a surplus. 


1. How do you generate long-term wealth?

It’s important to invest consistently in the right assets to generate long term wealth. A popular example of this would be to start a Systematic Investment Plan (SIP) in the best mutual funds in India. 

Furthermore, diversifying your portfolio across investments for emergencies, short, medium, and long term can set you up for future success. 

2. Which mutual funds are good for long-term investment?

Mutual funds that are backed by solid AMCs and fund managers who have a great track record, along with other factors like their investment philosophy are known to be suitable for the long term. You can consult a Cube Wealth Coach or download the Cube Wealth App.

Identifying these mutual funds on your own can be difficult. But apps like Cube simplify the process by giving you access to top-notch mutual fund advice from industry experts Wealth First

3. Where the surplus fund can be invested?

Surplus money can be invested in assets like mutual funds, stocks, P2P lending, asset leasing, digital gold, cryptocurrency, and more. But it’s best to talk to a trained professional before investing your surplus money in any asset. 


By investing your surplus money wisely and in alignment with your goals and risk tolerance, you can work towards financial security and wealth accumulation. Keep in mind that investing is a long-term journey, and it's important to stay patient, disciplined, and flexible to adapt to changing financial circumstances. With the right strategy and a commitment to your financial objectives, investing your surplus money can be a pivotal step towards securing your financial future.

Priya Bansal
Curious about personal finance and all things money. Can either find me reading a book or dancing to a tune.

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