Making an investment decision is not an easy one, as you need to look for both, security of your hard earned money as well as high returns. As a result, you need to be very smart as an investor, weighing pros and cons of various options available and finally pinpointing the one which suits all your requirements.
Here is a List of the Best ways to Invest Money in India for High Returns:
If your focus while investing your money in India is on higher returns, then stock market is undeniably the best investment for you. It can give you very high returns but there is an equivalent risk associated with investment in stock market. A good way is to make judicious investment in more than one reliable company, so that the risk is divided.
Bank Fixed Deposits (FDs)
One of the most lucrative investment ideas in India is investing money in bank fixed deposits, which carry a term ranging from 15 days to 5 years. The average rate of interest of 9.5% can be earned by the investor, with the rate going marginally up for senior citizens and ex employees of the bank. The major benefit of this scheme is security of funds.
Another option for high return investment in India is mutual funds, which take the funds from the investors and put them in circulation in the stock market. These companies give a fair share of profits, but there is an associated market risk in this kind of investment.
National Saving Certificate (NSC)
If you are looking for good return, coupled with security and tax saving, then investing in National Saving Certificate can be the best option for you. NSC is a government investment of 6 year tenure and grants a return of 8%, besides entitling the investor to tax deduction under Section 80 C of IT Act.
Public Provident Fund (PPF)
PPF is another government investment, which carries the benefit of tax saving. It grants a basic rate of interest of 8% and gives a provision of tax deduction under Section 80 C of IT Act.
For long term investment, real estate is a good way to earn high returns. You can make huge profits in case you are ready to invest money in the industry for a period exceeding 5 years, the investment giving returns as high as 100%.
Though there has been a fall in current prices of gold, yet it is considered as a safe and high return investment in the long run. Another variant of investment in gold is the Gold Deposit Scheme by SBI.
Investors looking for high returns along with safety of funds, can opt for insurance policies as a mode of lucrative investment. Take up policies from trusted insurance companies like LIC, Kotak Mahindra Life, SBI Life, Reliance Life, Tata AIG, etc.
In addition to these modes of investment, some other ways to earn high returns on investment in India are investment in debentures, recurring deposits, IPOs and Non Resident Ordinary Funds.