Attaining financial security is the topmost concern of any working man or woman. Most individuals save as much as they can during their working life and hope to enjoy the accrued amount when they retire. Then there are those who correlate long hours at work with increase of money in their bank accounts. However, the smart ones know that money begets money, and the best way to earn great returns on your income is to make your money work for you by investing it in the best investment plans, and the right financial instruments.
Here we tell you about the 10 best investment plans with high returns that are available in India.
Public provident fund
Also known as PPF, this is among the safest long-term investment options with high interest rate. This account can be opened from your bank or post office, with the amount having a lock-in period of 15 years, that can also be extended for a further 5 years on request. Additionally, the amount sits in the account and earns compound interest, with no withdrawals permitted before 6 years. Moreover, the amount withdrawn is totally tax-free.
Investments in mutual funds offer a balance between risk and returns. Mutual funds are becoming quite popular due to their balanced exposure to equity and bonds, along with a higher rate of interest. Investment in mutual funds through SIPs (Systematic Investment Plans) for the long term are among the best investment plans currently in the market.
Direct equity purchase
Investments in stock markets are known to give the highest rate of return. The only catch is that the individual should know how to analyse stocks before making the purchase, which is easier said than done. Long-term investments of more than 15 years are more likely to give excellent returns.
Investment in real estate
There is no other investment that can give returns that can be had from the real estate sector, provided you have the capital. The real estate sector is growing at a rapid pace in India with commercial and residential spaces in demand. This type of investment comes with very low risk, as the price of a house usually shoots up within a couple of years.
Post office saving schemes
A sturdy investment option for retired individuals with regular income requirements. This government saving scheme has very low risk factor with the option of a single or joint account. It can also be opened in the name of a minor. The maximum investment limit for a single account is Rs.4.5 lakh, with Rs. 9 lakh being the limit for a joint account.
Company fixed deposits
Similar to bank FDs, except that they give a higher rate of interest, and do not allow withdrawal of money before the maturity date. Furthermore, these are not under the control of the Reserve Bank of India. So, investors who can bear a little bit of risk and want to invest for the long term can go for this option.
Initial public offerings
Popularly known as IPOs, these count among the best investment plans in India. If they belong to a good, reputed company. These are also rare, as IPOs are issued only once during the life of any company. Lack of information on IPOs, coupled with the unique risks they come with, make them not ideal for short-term investments. However, if you’re looking for long-term, they make for a good option with low risk.
Unit linked insurance plans
ULIPs make for a great investment option, as they invest in both debt and equity markets. An investor can choose from an equity-oriented fund for more aggressive growth or a debt option for a conservative growth path. NAV or the Net Asset Value, plays an important role here as it is used to count the fluctuations in the market value of mutual funds and ETFs (Exchange-Traded Funds).
Invest in bonds
Investing in bonds is for those who are not comfortable with the volatility that is associated with equity market investments. Bonds are relatively safe, as the government regulates them. They are ideal for long-term investments and are the best investment plan with high return quotient.
Invest in gold
Investments in gold have always been a favourite among investors, as its value has consistently increased. Nowadays, there are many options that can be used for this. Such as gold mutual funds, gold deposit schemes, gold ETF, etc.