Savings in bank deposits, post office accounts and liquid funds are for making that extra kicker in liquid instruments. They cannot build wealth and they do not compound returns aggressively for you. That is why for long term wealth creation, you need to go well beyond the ordinary and focus on higher risk investments that can really add value to you. Let us look at few such genuine investment options to create wealth in the long run.

Equity diversified funds offer a mix of equity and is managed by an expert fund manager. That means you get the benefit of diversification and expert guidance at the same time. Equity fund investments can be done through systematic investment plans and are one of your best choices for long term wealth creation.

Index funds and Index ETFs are a good choice for passive investors. Since the indices like Nifty and Sensex have done quite well over the long run, you are likely to get good returns in these funds. However, you lost out the alpha of equity funds.

Finally, there is direct equity. Here you have to be your own fund manager. The examples of wealth creation abound. Rs.10,000 invested in Wipro in 1980 would be worth Rs.500 crore today. Similarly, Rs.1 lakh invested in Havells in 1996 would be worth Rs.30 crore today. But direct equities require lots of patience, time and skill to manage.