The biggest drawback of investing in low-risk investments is that you are likely to see only modest or low returns in the long-run. Inflation also erodes the small profits you gain from these investments. The risk-free investments mentioned here are ideal if your goal is to preserve your capital. However, if you’re looking to build your wealth, then consider opting for other investment products that match your long-term goals. While it’s true that low-risk investments do not generate high returns, it doesn’t mean your returns are zero. The safe investment options listed here offer you modest gains while providing tax benefits, as well. So, make sure to compare the features of the investments mentioned here and pick the ones that work best for you. So, here are some of the safe investment with high returns in india that you should have a look on.
1. Public Provident Fund (PPF)
PPF is one of the most popular saving options in India since it offers guaranteed returns and tax exemptions. It’s a scheme provided by the government of India to help individuals save for their retirement. The PPF can be opened at a post-office or banks.
The tenure of PPF is 15 years, and it can be extended further if required. The maximum number of investments permitted in a year is twelve and the maximum amount that can be deposited in a financial year is Rs. 1.5 lakhs. The amount invested in PPF is tax-exempted under Section 80C of the ITA. The interest rate offered ranges from 7% to 8.9%.
Premature withdrawals from the PPF account is permitted after five years of opening the account, for specific requirements.
2. Post Office Savings Schemes
The Department of Post, India offers several savings schemes to help individuals grow their wealth, and inculcate the habit of savings. Generally speaking, the returns from post office schemes are higher when compared to banks and other NBFCs.
Some of the popular post office savings schemes include:
Savings account – 4%
Sukanya Samriddhi Scheme – 8.1%
15-year public provident fund – 7.9%
5-year recurring deposit – 6.9%
Monthly income scheme – 7.6%
Kisan Vikas Patra – 7.3%
Senior citizen saving scheme – 8.3%
National savings certificate – 7.6%
3. Non-equity Mutual Funds
Non-equity mutual fund schemes like debt and GILT schemes offer capital protection and carry less risk. These mutual funds invest in secure products like debentures, government bonds, gold bonds, commercial papers and fixed securities. The investment horizon is short, mid or long-term, depending on the type of fund chosen and your investment objectives.
Since these are mutual fund investments, it’s not possible to guarantee 100% safe investment with high returns in india. However, the associated risks are far lower than those of equity-oriented funds.
These are some of the options that you can get your money invested in and get your money safe by investing in these options with taking that much risk. But this low-risk also gets you with not that high returns but are much higher than other options available. In case you have some doubts or suggestion that you want to share with us then feel free to do so.
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