Equities If you have the time and skills to investigate or to go through loads of financial data of the companies, investing in stocks is the preeminent option. A peruse study of market trends is quintessential prerequisite for investing in equities. The profits can be high, but is subject to market risks such as commodities price rise, change in policies and other factors. The upside of it is that there are many thriving businesses such as chip manufacturing, retail and IT services that are promising for investors. However, the task of researching or going through the financial statements and analysis is done by financial planners and fund managers, who roll out mutual funds, if you are time strapped. All these short term options are taxable and you can expect some deduction in the profit interest, usually for short term schemes for 6 months to 1 year. The risks are higher when compared to long term investments, although it is thrilling to meddle in this volatile economy.