These days everyone is looking for high return investments options in India. While there are several investment plans, one can choose high return investment options based on tenure, risk appetite and liquidity and taxation point of view. All investments should be done with specific financial goals in mind. The government, banks and financial companies all offer various savings schemes where in people can invest their money for a specific period of time and earn periodic returns on their investments. The best investment schemes that will make sure you have sufficient savings for future financial needs.
1: Fixed Deposits (FD)
Fixed deposits are the best safest and also most hassle free investment option where people can deposit a fixed sum of money for a specific period of time and will also earn interest at a fixed rate of return. Most of the banks and financial companies offers FDs at various returns staring at around 7% rate of interest. The advantage of FD investment is that anyone can fix as low as Rs 25000 and also can choose the tenurity. All the banks and NBFCs offer investment in fixed deposits ranging from 7 days to 10 years. Here there is also a option of choosing the frequency of interest pay out from your FD depending upon your income requirements. It can be monthly, quarterly, half yearly or yearly.
2: Personal provident Fund (PPF)
This is a government backed long term saving scheme that is completely tax free investment. The amount of money deposited in PPF is available as deduction under section 80C of income tax act. The interest earned on PPF is also not taxable. PPF may be opened in a bank or post office where the money gets invested for 15 years which can also be extended to more five years. There is a lock in period of 5 years and currently the PPF investments earns a compound interest at 7.90% per annum.
3: National Saving certification (NSC)
NSC is popular government backed saving option that provides guaranteed returns with tax savings. Investment in NSC can be done at any post office for a period of five years. The interest rates on NSC are decided by the government and are reviewed every quarter. Interest rates on NSC do not change during the tenor of NSC once the investment is done. Currently the rate of interest on NSC 7.90% Which is compounded half yearly. Rs 500 is a minimum investment can be made in NSC without any maximum limit.
4: Mutual Funds
A mutual fund is a professionally managed investment scheme usually run by an assets management company. Investing in the share market through mutual funds is a safer option than making a direct investment in the stock markets. You can also consider investing in systematic investment plan (SIP) which is one of the best ways to invest in mutual funds by making small regular investments.
5: Non-Convertible Debentures (NCD)
NCD are issued by companies for medium to long term funding requirement. These are generally secured and unsecured NCDs.Secured NCDs are backed up with assets like receivables hence carry low risk. High risk investors who are willing to invest for short to medium term can invest in these NCDs. Its one of the best high return investment options.