Safe Investments Options With High Returns In India

Capital protection and set or guaranteed returns are two benefits of safe investments. However, not every scheme offers a high rate of return. When investing in low-risk investments, inflation should frequently be used as a benchmark. You should look for investment opportunities that outperform inflation. Inflation can diminish the value of your profits as well as the amount of money you have. As a result, not all safe investments provide returns that outperform inflation.

It can be difficult to choose amongst the numerous investment possibilities. The general idea is to match your risk profile and investment aim to the investment objective and risk category of the product.

Investment Schemes With Higher Returns

Here are a few investment schemes with higher returns available in India:

1. National Pension System

The National Pension System (NPS), a long-term retirement-focused investment product, is managed by the Pension Fund Regulatory and Development Authority (PFRDA). Stocks, term deposits, corporate bonds, liquid funds, and government funds are all included. Depending on your risk tolerance, you can decide how much of your money to invest in shares.

2. Fixed Deposit

A bank fixed deposit is viewed as a safer investment option in India than stocks or mutual funds. Under the deposit insurance and credit guarantee corporation (DICGC) norms, each depositor in a bank is covered up to a maximum of Rs 5 lakh for both principal and interest as of February 4, 2020. Despite the lock-in, the bank will let you break your fixed deposit before the conclusion of the period. The interest, on the other hand, will only be paid for the time period during which the investment was made.

The rate of interest varies depending on the length of the investment, the amount invested, whether the investor is a non-resident alien (NRI) or not, and the bank. A lock-in period applies to FDs. If you want to withdraw within the lock-in period, the bank will charge you a penalty in the form of interest deducted from your investment. Other financial institutions, in addition to banks, offer FDs.

3. Public Provident Fund (PPF)

The Public Pension Fund (PPF) is a government-backed investment scheme. PPF investments have a 15-year lock-in term. PPF is regarded as one of the safest investments because the programme is backed by the government. PPFs, like bank FDs, pay a substantially greater interest rate than a standard savings account.

4. Recurring Deposits

A recurring deposit is an alternative to a fixed-income investment. Individuals that participate in RDs contribute a set amount on a regular basis. RDs, like FDs, pay a substantially higher rate of interest than a traditional savings account. Secured loans can be obtained by using your RD investment as security. Other popular investment alternatives in India include the National Savings Certificate (NSC), stock markets, and real estate, in addition to the ones discussed in this article.

Conclusion

You should constantly evaluate your risk profile while making investment decisions. Understanding your risk profile will aid you in choosing investing solutions that are appropriate for you. To put it another way, if you are a high-risk taker, low-risk investments may not provide you with the profits you expect. Highly volatile assets, on the other hand, will give a low-risk seeker a restless life. Market fluctuations will always cause them to panic. As a result, determining your risk tolerance levels is frequently the first step in developing a sound financial strategy.

Also read - Advantages Of LIC Tech Term Plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.