List of 10 Best Safe Investment Options offering High Returns in India for 2021-2022
Financial planning allows people to significantly ensure a steady cash flow that will help overcome unwanted worries. However, it is wise for investors to know the options available in the markets from different sources regarding investments. This will help a lot to accomplish goals in life to witness peace of mind from financial crunches. A person can even pick the right type of investment plan that suits his/her financial needs. Before choosing the investment plans, it is wise to significantly evaluate the risks in detail that will help avoid losses and other problems.
10 Safe Investment Options with High Returns in India for 2021-2022
- Bank Fixed Deposit
- National Pension Scheme (NPS)
- Unit-Linked Insurance Plan (ULIP)
- Public Provident Fund (PPF)
- Mutual Funds
- Senior Citizen Savings Scheme (SCSS)
- RBI Bonds
- Gold ETF
- Post Office Monthly Income Scheme (POMIS)
- Pradhan Mantri Vaya Vandana Yojana (PMVVY)
1. Bank Fixed Deposit
A bank fixed deposit is one of the safe investment options available for customers in the markets. It provides high-interest rates for investors, thereby showing methods to ensure guaranteed returns. On the other hand, the bank FD comes with a lock-in period, and a person should know the same before making deposits. Therefore, anyone looking for a low-risk profile can choose the scheme for meeting exact needs. Not only that, it provides ways to withdraw the amount partially and get loans against the balance. Moreover, investors can even extend a bank’s fixed deposit tenure based on their choices.
2. National Pension Scheme (NPS)
A National Pension Scheme (NPS) is a government-backed one that allows investors to earn consistent income. It is one of the safe investment options in India that help a lot to gain more advantages. The scheme offers investors auto and active options, thereby showing ways to accomplish goals. Investors can diversify their investment portfolios under the auto option that generates more income. At the same time, the active option lets investors invest money only in assets depending on their choices. The lock-in period of this plan depends on age because the amounts will mature only after an investor turns 60. It even provides methods to withdraw partially during emergencies. A person can make a minimum contribution of Rs.6000 depending on their needs.
3. Unit-Linked Insurance Plan (ULIP)
A unit-linked insurance plan, shortly known as ULIP, is an insurance cum investment product that allows investors to ensure financial security to their families. The safe investments with high returns in India enable investors to multiply their wealth for the long term. ULIP also provides the flexibility to switch the portfolios according to needs. Apart from that, it offers income tax benefits after opening an account. Insurance companies offer different ULIP plans in the markets, and investors can choose them with options. However, it is wise to evaluate the risks before selecting them.
4. Public Provident Fund (PPF)
A public provident fund (PPF) is the right choice for those who are looking for long-term investments with high-interest rates. However, it has a tenure of 15 years which provides guaranteed returns. The scheme is the safest way to invest money, enabling investors to invest a maximum of Rs.500 and a maximum of Rs.1.5 lakhs. Furthermore, the plan lets investors get loans from banks and other financial institutions. Currently, it comes with an interest rate of 7.1% per annum and will change in a financial year. One can open a PPF account both offline and online that helps generate good returns.
5. Mutual Funds
A mutual fund is an ideal option for those who want to earn consistent returns. It enables investors to diversify their portfolios in stocks, equities, money market funds, etc. Equity mutual funds and debt mutual funds are the two types of plans available for investors enabling them to gain more advantages.
6. Senior Citizen Savings Scheme (SCSS)
A senior citizen savings scheme is a secure investment option for investors because it offers a high-interest rate of 7.4% per annum. Moreover, he/she can deposit a minimum of Rs.1000 and up to Rs.15 lakhs under a single instrument. The scheme’s tenure is 5 years, and investors can extend the same for 3 years.
7. RBI Bonds
The RBI bonds are the safest way to invest money in India because they offer an attractive interest rate of 7.15% per annum. Investors can purchase them through SBI and 12 other nationalized banks. They have a maturity period of 7 years, and the minimum investment amount is Rs.1000. However, the interest rates are taxable, and investors cannot trade the bonds in the secondary market. Also, the bonds are 100% risk-free and not transferable. Besides that, an investor can appoint a nominee while buying the bonds.
8. Gold ETF
Gold Exchange Traded Funds are safe investments with high returns because they combine both gold investments and stocks. In addition, it provides high liquidity for investors, thereby showing ways to invest in the stock exchange. Moreover, an investor can use them as collateral for getting secured loans from banks and other financial institutions.
9. Post Office Monthly Income Scheme (POMIS)
A post office monthly income scheme is a safe instrument for investors, which gives ways to earn good returns with high-interest rates. Anyone can open the scheme with a minimum deposit of Rs.1000, which has a lock-in period of 5 years. Investors can withdraw their amount after maturity or extend the tenure for another 5 years.
10. Pradhan Mantri Vaya Vandana Yojana (PMVVY)
The Pradhan Mantri Vaya Vandana Yojana, shortly known as PMVYY, is a scheme meant for senior citizens who are 60 years of age and above. It includes the pension scheme for investors, thereby helping to generate high returns. The minimum deposit amount is Rs.1000 and can go up to a maximum of Rs. 9250 every month. It offers an assured return at the rate of 8% to 8.3% for 10 years. If the subscriber passes away, then a nominee will get the amounts with the purchase price. The scheme allows investors to invest a maximum of Rs.15 lakhs, providing a regular fixed income. Also, it gives ways to get loans up to 75% of the purchase price after 3 years to cover emergencies.
So, invest today in one of these Best Safe Investment Options offering High Returns and secure your financial future.