Looking for a safe investment option with high returns in India? It is clear from your search that you are not willing to give risky exposure to your hard-earned money. One always opts for investment to generate earnings, which is also high returns. So, the ultimate combination one wants is high returns with less risk, and acquiring it is next to impossible. The biggest reason is that the stock, finance, and investment markets work on risk, where high returns are directly proportional to the risk. That means the higher you expose your money to risk, the higher the returns will be, and vice versa. Thus, one must check and analyze their risk appetite. Understanding the risk appetite can help to access the best suitable investment option.
Recent years have shown the downturn phase of the market. It taught the investors that preferring risk is only sometimes beneficial. One must check the financial portfolio well and replan to invest in the low-risk schemes that offer higher returns so that some of your money will be safe enough during contingencies. You will be glad to discover some such financial products in the market to invest in that provide steady returns with low-risk exposure. Following is the list of some such popular options for safe investment options with higher returns in India 2023 –
- Fixed Deposit
- Public provident fund
- Unit Linked Insurance Plan
- Post office monthly income scheme
- National saving certificate
- National pension scheme
- Atal Pension Yojana
- Senior Citizen Saving Scheme
- Sukanya Samriddhi Yojna
- Pradhan Mantri Vaya Vandana Yojana
- Long Term Government bond
The following chart will present a clearer picture of this safe investment option by giving detailed information about the approximate returns one can generate from these plans.
| Scheme | Holding period | Interest rate | Low to High |
| Fixed deposit | 7 days to 10 years | 2.5% to 8% | Low |
| PPF | 15 years | 7.10% | Low |
| ULIP | 5 years | Depend on scheme | Low to high |
| Post office monthly income scheme | 5 years | 7.40% | Low |
| National saving certificate | 5 years | 6.8% | Low |
| National Pension scheme | – | – | Low |
| Long-term government bond | 20 years | Depends on contribution rate | Low |
| Senior citizen saving scheme | 5 years | Atal Pension Yojana | Low |
| Sukanya Samriddhi Yogna | Till girl child turns 21 | 8% | Low |
| Pradhan Matri Vaya Vandana Yojana | 10 years | 7.4% | Low |
| Fixed Deposit | 5-40 years | Depend upon scheme | Low |
A person invests his hard-earned money with the only intention to multiply it. Growth is expected, but it resists the loss when one inclines towards the safe investment option. The investor is unwilling to lose money and does not want his money to be devalued. The biggest fear for the investor is the lowering of the market graph. Inflation reduces the value of the money as well as returns. Thus, one must choose the safe investment option that gives inflation-beating returns, but not all safe investment option offers such returns. Here, proper analysis of various available options and selecting the right one is crucial.
How do you choose the safest investment option with high returns in India?
The above list of all the investment options are safe schemes and offer fixed income. Unlike equity schemes, they help the investor generate guaranteed income. However, the final decision regarding choosing the right option depends upon the comparison one can make based on specific criteria. These criteria include-
Objective: There must be some reason or goal behind the investment. The time of the fulfillment of the aim is always predetermined. Once the purpose is clear, one can opt for the suitable scheme based on the expected returns and available time to get the expected returns. If the aim is to get monthly returns, then the post office’s monthly saving scheme is good to opt. The best thing is that these schemes bear minimal risk; hence, they are the safest investment mode.
Period: Consideration of the period is crucial while planning for investment and choosing the plans. You must analyze the period for which you are willing to invest. If you are ready to invest for the long term, then Atal pension yojana or long-term government bond is the most suitable option, while for short-term investment, there are various schemes that one can opt for.
Amount for investment: The amount you are willing to invest will also help you determine the best suitable scheme for investment. Analyze various schemes and check the minimum amount required to understand the most appropriate investment plan. You must analyze your budget well before making a decision.
Tax – Analyzing the tax while choosing the investment scheme is significant when selecting an investment option. The tax could pose a significant barrier to your expected returns; hence, one must check whether the plan is tax-free or taxable, and also, if it is taxable, what could be the tax payable so that you will get the maximum returns for your investment.
End notes: One must scrutinize the various aspects of the investment scheme. It is good to google it, converse with friends, and meet with professionals and experts to research multiple schemes. You must plan to invest in such an option that can help you get higher returns, most simply.
