Select Page

There are numerous financial instruments in the market that offer good rates of returns without the risk of you losing the principal amount. Opting for investment vehicles that give good returns helps build a strong financial future. You may plan your investments in such a way so as to fulfill various life goals, such as marriage expenses, your child’s future educational fees, or saving for your golden years, among others.

With a host of investment options available in the market, choosing the best ones may seem like a daunting task. To help, we bring to you a list of the best investments with high returns for you to consider.

Unit Linked Insurance Plans

Unit Linked Insurance Plans (ULIPs) are a popular wealth-creation financial tool. It offers the two-fold benefit of insurance coverage and investment. One part of the premium is used to provide insurance cover, while the other part is invested in various financial instruments. ULIPs are long-term financial products and are ideal for individuals looking to meet their long-term goals, such as buying a new home or a luxury car. The good news is that ULIPs offer tax benefits under the Income Tax Act, 1961. You may enjoy tax deduction up to a limit of INR 1.5 lakh under Section 80C of the Act. The death benefit amount is tax-free as well.

Mutual funds

A mutual fund may be called the best investment plan in India. Mutual funds offer the power of compounding. Therefore, they have a multiplier effect on your wealth. You may choose from a variety of market-linked instruments, which offer returns that are higher compared to other traditional investment tools. You may explore various types of mutual fund options and choose the best one based on your financial goals and risk appetite. In case you are open to taking on risks, you may opt for equity funds. Though equity funds come with high risks, their potential returns are greater. Debt funds are fixed-income investments suited for you if you are risk-averse. You may also opt for balanced mutual funds if you are looking to balance risks. With this, you may gain moderate returns.

Fixed Deposits

Fixed Deposits (FDs) offer guaranteed returns on your investment. The rate of interest of FDs are higher than those of savings accounts, current accounts, government bonds, and Treasury Bills. Therefore, this may be considered the best investment plan in India. Such an investment vehicle is risk-free and offers fixed returns. You may invest in FDs on a short-term or long-term basis, that is, for a term ranging from 7 days to 10 years. FDs are known to be a liquid investment, and so you may break them as and when required, either partially or completely. In case you are looking for tax benefits, you may opt for tax saver fixed deposits. Such a type of FD come with a tenure of 5 years and offers tax benefits under Section 80C of the Income Tax Act, 1971.

Public Provident Fund

Introduced by the Ministry of Finance in 1968, Public Provident Fund (PPF) accounts have since been one of the most favorite investment avenues in India. Such an option offers a sovereign guarantee on the principal amount and the interest earned. With this, you may avail of tax deduction under Section 80C of the Income Tax Act as well. Furthermore, the interest is exempt from tax under Section 10 of the Act. You may easily open a PPF account at any designated post office or at an authorized bank branch. It is important to note that PPF returns are not linked to stock market performance. Therefore, it is a debt-oriented asset class. Currently, the interest rate offered on PPF investments is 7.6% p.a.

National Pension Scheme

National Pension Scheme (NPS) is an excellent vehicle for retirement planning. Self-employed individuals or those drawing a salary may voluntarily opt for this scheme. You may invest in the NPS scheme by depositing money every month or through a systematic savings plan and thereby build a sizeable corpus for your golden years. The amount is invested in various instruments such as government securities, corporate bonds and equities, among others. The National Pension Scheme not only offers good returns but also provides tax benefits. Therefore, you may claim tax benefits under Section 80CCD (1), Section 80CCD(2) and Section 80CCD (1b) of the Income Tax Act.

National Saving Certificate

National Saving Certificate (NSC) is among the top investment plans in India. It is a fixed-income investment scheme that comes with a maturity period of 5 years. Given its secure and low-risk nature, many people opt for this scheme. You may enjoy the benefit of compounding on the interest amount. This amount is reinvested by default, which increases the invested amount. You may invest an amount as small as INR 100 and increase the amount as and when feasible, in multiples of 100. You may invest in this scheme from any post office by complying with the Know Your Customer (KYC) process and by submitting the required documents. The good news is that you may also avail of a secure loan by using the NSC as collateral. Additionally, you may enjoy tax benefits under Section 80C, up to a limit of INR 1.5 lakh.

There are various investments with high returns available in the market today. Choosing the best plan will help you meet your goals at different stages of your life. Therefore it is imperative to make any investment decision keeping your goals in mind so as to enjoy financial security in the long run.

 

Share
123movies

If you love watching movies online for free, moviebox pro apk is one of the best in the market.

123 free movies cuevana.email