Investing is a sophisticated way of growing your money. If you’re looking for safe investments with high returns in India, this post is for you. For the risk-averse investors, there are many options that offer good returns without involving market-related risks. Let’s know about these here.
Low Risk High Return Investments in India
The following are some of the safe investment options in India that offer moderate to high returns:
Public Provident Fund
This investment plan is probably the ideal plan for your retirement savings, and it is also one of the safest investment plans in India. The Government’s Public Provident Fund (PPF) is retirement savings plan to ensure that everyone has a secure post-retirement existence.
A minimum deposit of Rs. 500 is required per financial year, with a maximum deposit going up to Rs. 1.5 lakh. PPF is a classic example of a safe investment with high returns in India with 80C tax benefits as well.
Bank Fixed Deposit
Fixed deposits are probably one of India’s most popular and talked about high return investments. If you want to understand the hype behind Bank FD, compare the interest rate offered in Bank Fixed deposit with a regular savings account.
National Pension Scheme (NPS)
NPS or National Pension Scheme is a retirement savings scheme started by the Indian Government to financially secure an individual’s life after retirement. This is another option of high return investment in India. Let’s understand how this scheme works. When you contribute to this scheme, it gets invested in market-linked securities, such as equities and mutual funds, with high returns in India.
Unit Linked Insurance Plan, or ULIP, is a multi-faceted life insurance product. It is a life insurance and investment plan in one. This plan is special because it not only provides you with an opportunity to generate more wealth, but it also provides financial security to the investor. This plan is perfect for you if you are looking for a safe investment with high returns in India.
Why Should I Invest?
The following are the prime reasons for you to start investing now:
- Build your wealth: Investment plans that include life insurance are a surefire method to build wealth over time. As an investor, you can select the plan that best meets your needs based on risk, rewards, and the amount you want to invest.
- Save on Taxes: Investment plans are useful for risk management, wealth-building, and tax reduction. Premiums and payouts are tax-free under sections 80C and 10(10D) of the Indian Income Tax Act.
- Saves for retirement: Not just this, a high return investment plan in India, can also help you save for your early retirement. You can purchase and save funds that can be utilized later in life. In this way, you will be financially self-sufficient even after retirement.
Things to Consider Before Investing
Before you put your money in any of the above-mentioned investment options, consider these:
Plan your investment
Having a clear plan is very important before you get your feet wet in investing. This step helps you put your investment goals in context and when and how you want to attain them.
Analyze your timeframe ad appetite for risk:
It’s crucial to think about how much time you’re allowing yourself to reach your financial objective and how much risk you’re willing to take in the process.
For example, a retirement investment plan for someone significantly older or younger may appear very different. If you wish you withdraw your money early, staying invested through market ups and downs is doubtful; therefore, a less hazardous investment strategy may be the way to go.
Safe Investments with High Returns: FAQs
Public Provident Fund, EPF, ULIPs, Bank fixed deposits and NPS are some of the safest investment options in India offering decent returns.
Choosing a safe investment with high returns in India is a sustainable way of growing your wealth and helps you save on taxes. Investment plans in India with high returns will also help you save money for your retirement with regular returns on your investment.
Large-cap mutual funds provide high returns on your investment.
Following are some of the safest Tax saving investment alternatives in India:
National Saving Certificate, PPF, FD and EPF.
The sooner you begin investing, the greater your return on investment will be.