When it comes to investing, everyone wants to get the highest returns possible. However, the concept of "high returns" can be subjective and varies depending on factors such as risk tolerance, investment goals, and time horizon. In India, there are several investment options that offer varying degrees of returns and risk. In this article, we will explore some safe investments with high returns in India and identify which investment has the highest return.
1. Fixed Deposits
Fixed deposits (FDs) are a popular investment option in India for their safety and reliability. They are offered by banks and post offices and offer a fixed interest rate for a fixed tenure. The interest rate on FDs varies depending on the tenure and the institution offering them.
Generally, longer tenures offer higher interest rates. As of February 2023, the interest rate on FDs offered by major banks ranges from 4% to 6.5% per annum.
FDs are considered a safe investment option as they are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC) up to Rs. 5 lakh per depositor per bank. They are also suitable for investors who are risk-averse and looking for a regular income stream.
2. Public Provident Fund
The Public Provident Fund (PPF) is a long-term investment option that offers tax-free returns. It is a government-backed savings scheme that has a tenure of 15 years and can be extended in blocks of 5 years. The interest rate on PPF is currently 7.1% per annum, and it is compounded annually.
PPF is a safe investment option as it is backed by the government and has sovereign guarantee. It is suitable for investors who are looking for a long-term investment option with tax benefits.
3. National Pension System
The National Pension System (NPS) is a government-backed retirement savings scheme that offers market-linked returns. It is a voluntary contribution-based scheme that allows investors to choose their own investment options. The scheme has two types of accounts: Tier-I and Tier-II. Tier-I is a mandatory account for all subscribers, while Tier-II is a voluntary account.
The returns on NPS are market-linked and depend on the performance of the underlying assets. As of February 2023, the average returns on NPS Tier-I accounts over the last 10 years have been around 10% per annum. However, it is important to note that the returns are not guaranteed and are subject to market fluctuations.
NPS is a safe investment option as it is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and has a low expense ratio. It is suitable for investors who are looking for a long-term retirement savings option.
4. Equity Linked Savings Scheme
Equity Linked Savings Scheme (ELSS) is a tax-saving mutual fund that invests primarily in equity and equity-related instruments. ELSS has a lock-in period of three years and offers tax benefits under Section 80C of the Income Tax Act, 1961. The returns on ELSS are market-linked and depend on the performance of the underlying assets.
ELSS has historically offered higher returns compared to other tax-saving options such as PPF and FDs. As of February 2023, the average returns on ELSS funds over the last 10 years have been around 14% per annum.
ELSS is a safe investment option as it is regulated by the Securities and Exchange Board of India (SEBI) and is managed by professional fund managers. However, it is important to note that ELSS is a high-risk investment option as it invests primarily in equity and is subject to market fluctuations.
5. Which investment has the highest return?
Based on the above analysis, ELSS has historically offered the highest returns among the safe investment options discussed in
0 Comments