An ideal instrument will multiply your investment quickly without posing any threat to your invested amount. However, the perfect combination of big returns with low risk is hard to find these days because of the uncertain economic conditions.
Therefore, we have listed down the top 10 best types of investment that you can consider to receive high returns with minimum or no risk:
Senior Citizen Saving Scheme
If you are wondering what is Senior Citizen Saving Scheme, then it is a lucrative investment option that offers a high-interest rate to the senior citizens. It is a Post Office Saving Scheme backed by the government of India. Therefore, it is completely safe but you can invest only up to 15 lakhs in this scheme.
PPF (Public Provident Fund) is ideal for investors who are looking for a long term and risk-free investment option. The interest that you earn through PPF is tax-free but its long tenor and strict withdrawal options make it less impressive for some investors.
Investing in gold can be a good option as its prices tend to increase every year. You can also invest in sovereign gold bonds issued by RBI to avoid the making charges that incur when you buy physical gold.
Any house or land you buy for making a profit is considered an investment. Purchasing a property is a long-term investment but it might provide you with high returns in the future.
Bank FDs are safe as they are covered under deposit insurance rules according to which up to Rs. 5 lakh of each investor will be insured even if the bank defaults or closes down.
However, the current bank FD rates are quite low due to the repo rate cuts and other economic policies implemented by RBI to resurrect the economy.
The Post Office Time Deposit i.e. POTD provides a high interest rate that is revised after every quarter. It is a safe instrument backed by the government and allows you to withdraw the interest annually.
Debt mutual funds
Debt mutual funds are not as volatile as equity funds as a major chunk of your investment get invested further in government securities, corporate bonds, and other securities that grow at a fixed interest rate.
However, since they are not completely risk-free, you must research the associated risks before investing.
The Systematic Deposit Plan from Bajaj Finance enables you to deposit a fixed amount starting from Rs. 5000 every month. The number of deposits can range between 6 and 48 as per your financial obligations and each deposit will grow at a rate applicable on the date of deposit.
The tenor for each deposit can be up to 60 months or you can choose a single maturity date for all your deposits as per your financial requirements.
You can invest in NPS i.e. National Pension Scheme if you are planning for your retirement. This is because a part of your investment goes into the annuity fund and you receive a fixed pension after retirement.
Also, 60% of the maturity amount can be withdrawn and used for future investments.
Corporate FDs offer better returns than bank FDs as they provide a higher FD interest rate. For example, Bajaj Finance FD offers an interest rate of 6.85% which is one of the highest FD rates in India.
The high credit ratings conferred by credit rating organizations make it a safe investment option. A flexible tenor ranging from 12 to 60 months can be picked for your deposits.
Senior Citizens get a 0.25% extra FD rate and non-seniors can avail of a 0.10% additional FD rate by using an online FD form to book this FD.
The option of investing in both cumulative and non-cumulative FDs at once by using the multi-deposit facility and easy online tracking of investment make it one of the best options on this list.
A perfect instrument will provide you with surplus returns and will be risk-free as well. However, you need to choose an instrument carefully according to your financial needs and plans. There are several investment options like PPF, NPS, Senior Citizen Saving Scheme, etc. but you can think of investing in a high paying corporate FD like Bajaj Finance that provides flexibility in terms of tenor, online tracking of investment, latest FD features, and much more. Moreover, you can also invest in its SDP to earn good returns through monthly deposits without investing a lump sum amount at once.