How do you save?

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Cost of living has increased due to inflationary pressures and as a consequence, saving habit of people is becoming a question mark. More over high yielding investment options are limited. In bank deposits, you see security and safety,but return is very minimal. If you invest in share market, there is a danger of your capital itself being eroded, in present conditions. Then you look for mutual fund investments. I think in present market conditions, investment in popular mutual funds is the best option for those who are having a surplus. Mutual fund though long term in nature, has been able to give attractive returns over the years! What are your views and comments on the above?