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Best Investment Options for High Returns

A lot of questions and doubts crop up in mind when it comes to the best investment options available in India. Every investor understandably wants to invest in good investment options so that they can get maximum returns on their investment with a specific tenure and minimum risks involved. Each individual has a different reason to invest – be it for financial security or to fulfill his or her investment goals. Hence, with a host of money investment ideas floating around in the market, it is crucial to select the best plan based on the financial objectives, liquidity needs, and risk appetite. 


However, it may be quite challenging to find the best investment options that have high returns and little or no risk involved. To simplify your search, we have highlighted the top 7 investment options in the market that can help you achieve your financial goals.

1.     Stocks/ Direct Equity

Considered the best long-term investment option, stocks are a very lucrative option for investors looking to grow their money. Even though it is a high-risk investment choice, the returns offered are higher than any other investment options available in the market today. But before considering this investment into stocks and direct equity, one must choose the right stock that looks most likely to yield profits in the future as well as time the buying and selling of the stocks to gain maximum returns.

2.     Fixed Deposit (FD)

Another good investment option is bank fixed deposits that offer fixed returns over a fixed tenure of the investment. The FD rates are quite attractive as they range anywhere between 6.5% for normal citizens to 7% for senior citizens and are not affected by market fluctuations. You can make the investment for a period ranging between 7 days to 10 years as per your investment needs.

3.     Mutual Fund

Mutual Funds are a very promising and popular form of investment amongst people in India as they offer high returns over the long term. They are linked to the market as your money is invested in various financial instruments like stocks, equity, debt, and more and the returns are produced based on the performance of each financial instrument. It is to be noted that even though mutual funds are on the riskier side, they offer much better returns when it comes to the best investment options.

4.     Unit Linked Insurance Plan (ULIP)

Unit Linked Insurance Plans offer a lot of benefits such as insurance, investment in equities as well as help the investor claim an 80C deduction. To get a mix of all these characteristics of financial planning, ULIP is one of the suitable investment options. In ULIP investment, a small portion of the money is invested towards securing your life and the rest is invested in market-linked instruments such as bonds, shares, etc. that help you further grow your savings.

5.     National Pension Scheme (NPS)

Amongst other money investment ideas is the National Pension Scheme which is backed by the Government of India and offers pension solutions to the investor. The NPS is a good scheme for anyone who wants to plan for his or her retirement early on and has a low-risk appetite. A regular pension can work as a great source of income in your retirement years and individuals can also make use of the 80C deductions under the Income tax act. The scheme only matures once the investor turns 60 and the accumulated interest is absolutely tax-free.

6.     PPF

Established by the Government of India, PPF is a pure long-term investment scheme offered by banks and post offices. There is no minimum or maximum age to open a PPF account. In terms of investment, however, the minimum amount is Rs 500 and the maximum amount is Rs. 1.5 lakh. On completion of 15 years of the PPF account, it can be extended in blocks of 5 years for an indefinite period. This investment qualifies for tax deduction under Section 80C of The Income Tax Act and also gives you the benefit of availing of a loan against the investment amount.

7.     Post Office Monthly Income Scheme

As the name suggests, the Post Office Monthly Income Scheme is a scheme regulated by the post office of India and helps the investor to earn a monthly income on the invested amount. As it is a Government backed scheme, your money is safe and secure until maturity. The lock-in period is 5 years and the investor has the choice of either withdrawing the money or reinvesting it to continue earning the benefits of the scheme.

Type of Investments

1.     Low Risk

Debentures, bonds, and fixed deposits come under the low-risk category as these investment options pay a fixed income to the investor regardless of any market fluctuations or changes in the economy. Besides this, there are other investment options such as EPF, PPF, Senior Citizen Savings Schemes, and National Savings Certificate, which are Government backed schemes and hence are considered to be quite safe and low-risk investment options.

2.     Medium Risk

These kinds of investment options are best suited for those investors, who are looking for low volatility in their investment portfolio with a medium risk appetite. Such investors want to gain relatively higher returns and a regular flow of income as compared to fixed-income securities. Balanced mutual funds, debt funds, and index funds fall under this category.

3.     High Risk

It is a common fact that when we talk about high-risk investment options, the returns and risks are directly proportional to each other. This implies that the higher the risk factor, the investor stands to gain more and vice-versa. Equity mutual funds, stocks of companies, and derivatives fall under this category. Only those investors who are well versed with the market and have a high-risk tolerance must consider investing in high-risk investment options.

How to choose the Best Investment Option for You

Before choosing the best investment options, one must always consider asking the following questions:


  • What are my investment/ financial goals? Depending on your goals, you can decide which is an ideal investment option for you. For instance, if you wish to stay in a safe and secure investment and don't mind locking your funds for a certain period of time, then the Public Provident Fund (PPF) is a good investment option for you.
  • How much money can I afford to invest? Asking yourself this question is a good way to decide how you should proceed with your investment journey. Investing an appropriate amount will not only help grow your savings but also build a nest egg for when it's time to retire
  • What’s my risk appetite? Whether it is low risk, high risk, or medium risk, the investor’s appetite determines which is the most ideal investment option to consider. For instance, if you have a low-risk appetite, a Government backed scheme would be the most appropriate choice to block funds.


Having a proper understanding of the different market investment options is the golden rule for making smart investments. Depending on financial objectives, duration, and risk levels, the purpose of investing can vary for most investors.