India markets closed
  • BSE SENSEX

    50,441.07
    +35.75 (+0.07%)
     
  • Nifty 50

    14,956.20
    +18.10 (+0.12%)
     
  • Dow

    31,496.30
    +572.20 (+1.85%)
     
  • Nasdaq

    12,920.15
    +196.65 (+1.55%)
     
  • BTC-INR

    3,689,986.50
    -34,597.50 (-0.93%)
     
  • CMC Crypto 200

    1,017.08
    +73.90 (+7.84%)
     
  • Hang Seng

    28,540.83
    -557.46 (-1.92%)
     
  • Nikkei

    28,743.25
    -121.07 (-0.42%)
     
  • EUR/INR

    87.0924
    -0.0422 (-0.05%)
     
  • GBP/INR

    101.4357
    +0.2169 (+0.21%)
     
  • AED/INR

    19.9030
    +0.0340 (+0.17%)
     
  • INR/JPY

    1.4771
    -0.0019 (-0.13%)
     
  • SGD/INR

    54.3980
    -0.1110 (-0.20%)
     

Best investment options with high returns

Sudhakar G
·2-min read

Investors from all around the world want to secure their financial conditions for the future. As the economy has started to recover, it has become more important to invest in a long term plan this year. Risk and returns are a major part of investments. Instead of keeping your money idle in banks, you can think of investing it in different avenues.

Also read: Why is SIP a preferred way of mutual fund investments?

Best long term investments in the coming years:

Growth stocks: Stocks are a representation of a share in the ownership of a company. These are some of the best investment avenues that you can consider for the coming years. The trades of stocks are made electronically in the stock market. Growth stocks are an asset class in which there is no guarantee of returns. You need to open a Demat account to invest in this equity.

Fixed deposits: Fixed deposits come under the category of low-risk investments. With the help of a fixed deposit, you can get a fixed amount of returns at various time intervals. Under this investment option, the bank is insured by a maximum amount of Rs 5 lakh for both interests and principal.

Also read: Can money buy happiness? 7-year study answers famous question

Mutual Funds: It is a collective investment in which a fund manager collects the money from people and invests them in stocks. According to India's Securities and exchange board, the scheme for mutual funds invests around 65 per cent of its assets in equity-related instruments. Mutual funds come under the category of medium-risk investments.

Public provident fund: It makes a safe investment option as the interest and the sovereign guarantee backs the principal. It requires a minimum investment of around Rs 500. The life cycle of the public provident fund is of 15 years. The interest rate is revised every quarter by the government. At present, the interest rate of PPF is 7.9%.

Also read: Bitcoin mining: What is it, and how do I do it?

Savings scheme for senior citizens: It is a government-based scheme for senior citizens above 60. You also get paid a high rate of interest that is set by the Indian government. Savings scheme for senior citizens has a tenure of 5 years that can be further extended also. A senior citizen can also claim a deduction amount of Rs 50,000 under section 80TTB. The interest rate for senior citizens' savings schemes is 7.4%.

Risk

tenure

Liquidity

returns

Growth stocks

High

Anytime

High

Linked with market

Fixed deposits

Low

10 years

Premature exit allowed

Assured

Mutual funds

Moderate

Open always

High

Linked with market

Savings scheme for senior citizens

Low

5 years

Low

7.4%

Public provident fund

Low

15 years

Partial withdrawals allowed

7.9%

The investment avenues that you choose will depend on your future goals and liquidity needs. Whenever you start selecting an investment avenue, you need to know your risk profile.