Investing money requires a lot of effort from the investor’s side. This effort consists of doing detailed market research, choosing the right plan from various investment plans and different schemes, finding the right time to invest, and a lot more. People who are new to this concept often carry a mindset of getting huge returns by investing little in less time and minus the risk part. But sadly, that does not happen in reality. After reading this article, you’ll get a good idea about how to invest money to get high returns in India.
Any investment includes risk; returns and dangers are entirely related to each other. But what needs to be done from our side is to choose an investment plan that caters to our needs. If we want to lower the risk, the return will also be less. That’s why we are providing you with an outline of where to invest money to get high returns in India so that you can select which plans are going to suit you. You will also compare among the projects yourself and get to know the best features of each one.
Best Investment Options in India
Investment products are divided into multiple categories and subcategories. The main two categories are Financial and Non-Financial Assets. Now the Financial Assets have two subdivisions such as – fixed income products and market-linked products. Mutual Funds and Stocks are market-linked products, whereas fixed deposits in the bank and public provident funds fall into the frozen income products. On the other hand, other investment modes like real estate and gold are under the category of Non-Financial Assets. Now, let’s take a look at the list of best investment options in India given below.
1. Unit Linked Insurance Plan or ULIP
ULIP or Unit Linked Insurance Plan provides an investor with dual benefits of investment and insurance. It offers you to obtain the maturity tax-free. This type of plan includes a lock-in period of like 3 or 5 years. Unit Linked Insurance Plan is considered one of the best investment options as one part of your premium money will be invested in such as stocks, and the other will be for insurance coverage.
- Dual benefits of investment and insurance.
- Tax-free maturity.
- Long-term plan for high returns.
2. Mutual Funds
Mutual Funds have become a leading investment avenue in India. On long-term plans, it provides high returns. It’s an example of market-linked investment products in which an investor can have various options to invest in, like stocks, debts, money market funds, and a lot more. Here, the market performance decides how much the return would be. Mutual funds are run on the high-risk, high-return rule. But people are more drawn towards this as mutual funds have much more potential to provide better returns than other prevailing investment options. Mutual funds offer these two vital investment avenues –
- Debt Mutual Fund – if you want a stable ROI, Debt Mutual Fund is the best option. You will avail the benefits of fixed interest securities, such as government securities, commercial paper, treasury bills, and much more.
- Equity Mutual Fund – in Equity Mutual Fund, the investor gets a high ROI while investing in various company shares. But the risk is also high. This investment option lets you invest an enormous amount of 65% in equity securities and the remaining part in money market tools or debt.
- Offers a multi-faceted investment portfolio.
- The fund manager helps in choosing suitable investment schemes.
- Transparent investment without wealth tax.
3. Public Provident Fund or PPF
Public Provident Fund or PPF is one of the most secured long-term plans. PPF is tax-free and can be created in a post office or a bank. It offers you to gain compound interest on the money you invest in over 15 years. This period can also be elongated for only five years if you want. But you can withdraw the money only after the 6th year is over. If you need the money before that, you have the option to avail loan from your PPF balance. Know more about PPF here.
- Secured and tax-free high return.
- Government-backed investment option.
- Offers loans before maturity.
4. Senior Citizens Savings Scheme or SCSS
If you want to avail a tax-saving and risk-free investment plan, then the Senior Citizens Savings Scheme will be best suited for you. It is for senior citizens above 60 years of age and provides them with a regular income. It offers a high interest which is usually around 7-8% each year. You can go for this scheme through banks or post offices, and the maximum investment amount in SCSS is 15 lakhs.
- You can use the nomination facility.
- Offers risk-free high return
We’ve tried to gather the best investment options on how to invest money to get high returns in India. If you enjoyed reading this article, kindly share this with your friends and family.