Saving money is good and proper investment of the saved money is an art by which you can make your saved money to grow itself for you. There are many ways to save and invest money. Like investing in National Saving Bonds, PF/PPF, 401 plans, Mutual Funds, LIC, Retirement Schemes, Properties (home, shop and pots), Stocks etc. National Saving bonds considered as safest investment while stocks are considered as most risky investment. Based on the risk involved you will get return. Stocks can gives you maximum return then any other investment but at the same time you can loss your saved money. You should invest in multiple things and there should a proper balance between them. Percentage of amount you put in multiple investment depends on your risk caring capacity. Again the portion of the money you plan to invest in the stocks should be further divided into three categories. Long term, medium term and short term. You hold good fundamental stocks for long time regardless of their price move