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The Top 10 Low Risk (safe) Investment Plan with High Return in India

A maximum number of investors want to make their investments in the way where they can get very high returns very quickly without any loss in their principal money, which they invested. That’s why most of the investors are always looking for investment plans which can give them more returns in a few months or years without any risk.

The fact is that there are no investment plans that exist without any risk. Risks and returns are always inversely related in real life.

While selecting an investment plan, always match the risk profile associated with the plan before investing. There are many investment plans, which have the potential to generate high returns but carry higher risk than other asset class plans while others come with low risk and will give you low returns.

You can invest in two types of products. The first one is financial assets, which can be divided into mutual funds, and stocks, which are market-linked products and then fixed income products like PPF (Public Provident Funds) and fixed deposits. The second one is non-financial products, which include gold and real estate.

Please have a look at the below avenues which can help you in your financial goals.

  • Direct Equity

Not everyone can invest in the stock market, as these are volatile investment plans, which don’t have any guarantee of returns. It is very difficult to enter and pick the right stock. Timing is an essential thing in stock. However, this can give you higher returns over a long period with good knowledge of these asset classes.

A Demat account is required to invest in equity stocks. You can opt for a long-term investment to get higher returns.

  • Equity Mutual funds
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Every day you must be seeing advertisements that mutual funds are subject to market risks. These are investments in equity stocks. According to SEBI (Securities and Exchange Board of India) regulations, you must invest at least 65 per cent of its assets and equity-related instruments. This type of investment can actively and passively be managed.

To generate returns in a traded fund, it depends upon the fund managers’ ability. The schemes are categorized by the investment sectors as well as market capitalization. They are also categorized in domestic stocks, which are inside India only, and International stocks which are overseas companies.

  • Debt Mutual Funds

These are ideal for those investors who want to make steady returns. They are very less explosive and have very less risk compared to other equity funds. The primary investments are made in fixed interest services, which generate securities like government securities, treasury bills, corporate bonds, and other money instruments. The returns are around 6.5 %, 8 % and 7.5 % in 1, 3 and 5 years respectively.

  • National Pension scheme

The investment product is managed by PFRDA (Pension Fund Regulatory and Development Authority). This is a very long-term retirement product. The minimum annual contribution to investment in NPS was reduced from Rs.6000 to Rs.1000. The service is a mixture of corporate bonds, government funds, and other asset classes. The market return is around 9.5 %, 8.5 % and 11 % in 1, 3 and 5 years respectively.

  • Public Provident Funds

The Public Provident Fund or PPF has a long tenure of 15 years, and many people opt into it. The impact of tax-free interest has been very high in the last few years. The investment is very safe and backed by a sovereign guarantee.

  • Fixed Deposit
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The safest mode of investment in India is the bank’s fixed deposit. One can opt for a monthly plan, quarterly, half-yearly as well as yearly. In addition, they can create their scheme as per the rules by DICGE (Deposit insurance and credit Guarantee Corporation). The earned interest is added to the personal income and taxed as per his income slab.

  • Senior Citizens’ Saving Scheme

The above investment plan is the choice of retired people. The service can only be opted by senior citizens as per the name suggests. The interest rate for the above scheme is 8.3 % per annum. The maximum limit for the investment is 15 lakhs, and one can open multiple accounts.

  • RBI Taxable Bonds

The interest rate for the above bond was increased to 8 % from 7.75 % in 2003, and the service is taxable. The tenure for the above bond is seven years.

  • Real Estate

The second house where you don’t tend to live can be your investment. The most important factor is the location of the property. It will determine rental, which can be earned as well as the value of the property. You must follow the guidelines for the real estate business and need some approval.

  • Gold

Processing the gold and converting them to make jewellery with making charges which range between 6 to 14 % of the cost of the gold and may go high up to 25 per cent for some special designs. You can also buy gold coins and sell them according to the stock exchange. There are also digital gold options provided by many.

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