Five Investment Options That Offer Safe And Higher Returns


A plethora of investment options is available in India. These options are small investment schemes such as EPF, PPF and NPS, Fixed Deposit (FD), Mutual funds, equity, and many more. Real estate and gold are also useful and popular instruments for investment.

Indians are generally conservative investors and do not choose to invest in schemes with a factor of risk attached to it. But recently, the trend is changing. Investors are opting for mutual funds, equity, and other market-related investment options.



Here are five investment options in India which offer excellent returns and are safe:

Best investment options to choose from

1.      Fixed Deposits:
These are one of the most reliable investment options as the funds are not market dependent. Fixed deposit Interest rates are higher as compared to the other investment schemes. 5-year tax-saving FDs enjoy exemption under Section 80C of the Income Tax Act, 1961, up to Rs. 1,50, 000. Senior citizens’ FD has a higher rate of interest.
2.      Public Provident Funds:
PPFs are a prevalent investment scheme with maximum fund protection and guaranteed returns. It enjoys full tax exemption. You can invest a minimum of Rs. 500 and the maximum of Rs.1,50,000 in a fiscal year. PPF offers a higher rate of interest in comparison to other investment schemes. You can obtain a loan on your PPF amount between the 3rd year and 6th year of the investment. All PPF accounts are under the Indian government's financial authority.

3.      National Pension Scheme (NPS)
NPS is yet another government-backed investment scheme to provide a substantial sum and a monthly pension to the investor after retirement.  This scheme is a combination of investments like liquid funds, fixed deposits, and corporate bonds. There are many options to choose from where you can select the plan as per your requirement.

4.      Debt mutual funds

A mutual fund is a capital collection from various investors for investment in capital assets like shares, bonds, etc. Mutual funds are of three types: equity funds, debt funds, and hybrid/balanced funds.

             Debt funds are ideal for investors who invest in getting steady returns. These funds are less volatile and have a lesser element of risk as compared to equity funds. Debt mutual funds primarily invest in securities like corporate bonds, government securities, treasury bills, etc. The scheme offers an interest rate of around 6.5 % to 8% depending upon the tenure of investment. 

5.      Gold
             Investing in gold is a traditional investment practice of every Indian. Gold investments happen in the form of gold jewelry, coins, and bars. Apart from possessing physical gold, gold ETFs and sovereign gold bonds are also available.

Apart from these investment schemes, many more are available, like ULIP, Real estate, Equity funds, RBI funds, etc. It is solely at the investor's discretion to make his decision regarding the investment option. One can select an option that best suits one's needs. The above mentioned are the schemes which are the best with respect to fund security and the amount of return on deposits.