Best High Return Investment Options in India
These days, everyone is looking for high return investment options in India. While there are several investment plans, one can choose high return investment options based on tenure, risk appetite and liquidity and taxation point of view. Which are the top high return investment options in India? How you can choose a good investment plan for you which can fetch you high returns in India. In this article, I would help to analyze some of the best high return investment options to invest in India.
How to choose best High Return Investment Options in India?
I don’t just say invest in stocks or mutual funds. Here one should look at several parameters before considering it as a high return investment option.
1) Depends on Tenure: Investment option can vary from a person to person who want to invest for 1 year or 10 years.
2) Depends in risk appetite: A high risk person can invest in stocks, but a low risk investor cannot. Hence, one should check whether it fits his or her risk appetite. High return investment option of investing in Stocks may not always fit for everyone.
3) Liquidity: If you are investing your emergency money or short term investment, liquidity should be high priority. Hence, investment in NCD’s may not be best high return investment option if you are looking for quick liquidity.
4) Taxation: Investment in bank FD Vs investment in tax saving FD schemes would depend whether you are looking for taxation point of view.
Best High Return Investment Options in India
1) Mid-cap and Small-cap mutual funds
One of the best high return investment is investing in Midcap and small cap mutual funds. Midcap and small cap mutual funds invests in midsized or small sized companies which have potential to grow money in short to medium term. Some of my favorite mutual funds in this segment are Franklin India smaller companies fund, DSP BR Micro fund, HDFC Midcap Opps fund, Mirae Emerging blue chip fund etc., You can refer more top midcap and smallcap mutual funds in this segment here.
Who can invest: Investors who can invest medium to long term of 5 to 10 years can consider this as one of the best investment options to get high returns.
2) Company Fixed Deposit Schemes
There are several company FD schemes where you can get a yield of as high as 12% per annum. You can look for high return company FD schemes and invest in them. Here are some of the top company FD schemes.
- The Bajaj finance FD scheme offers interest rates of 8.7% to 8.9% per annum. Annualised yield works out to be 10.63%
- DHFL Aashray Deposit Plus FD scheme offers interest rates of 8.5% to 8.75% per annum. Annualised yield works out to be 10.4%
- The LIC HFL FD scheme offers interest rates of 8.25% to 8.5% per annum. Annualised yield works out to be 10%
Who can invest: Company FD schemes carry high risk. Investors who are willing to take high risk and want to invest money for short to medium term of 1 to 5 years can invest in these high return company FD schemes.
3) Investment in Stocks
Investment in direct stocks would give high returns. An investor can invest in stocks that fits with warren buffet principles and expected to give superior returns in India.
Who can invest: High risk investor willing to invest in a medium to long term tenure of 5 to 10 years can look Stock investment as a high return investment option.
4) Non Convertible Debentures (NCD)
Non Convertible debentures are issued by companies for medium to long term funding requirement. These are generally secured and unsecured NCD’s. Secured NCD’s are backed up with assets like receivables, etc., hence carry low risk. DHFL Secured NCD’s got oversubscribed twice in Aug and Sep-16 on day-1. This shows investor interest in NCD’s. If you have missed to subscribe them you can buy them from the secondary market (like any other stock), however they might be available at some premium. Keep checking our blog for latest NCD issues so that you can subscribe to get them high return from these NCD’s.
Who can invest: High risk investors who are willing to invest for short to medium term can invest in these NCD’s. One of the Best High Return Investment Options.
5) Peer 2 Peer Lending
This is a new emerging investment option. In this an individual instead of investing in fixed income schemes, they would lend money to a person who needs it. These are being arranged by some of the P2P lending companies like faircent etc., Interest rates would range between 8% to 24% depending on the risk profile of the borrower. I would cover more info about Peer 2 Peer Lending in coming weeks, giving complete facts, pros and cons of this best high return investment option.
Who can invest: One of the nice way to get higher returns on your investment option. However, this is one of the high risk investment options as it depends on borrower who need to repay your money back along with interest.
6) ELSS funds for tax saving option
If you are looking for tax saving along with growing your money, then the best way to get higher returns is to invest in top ELSS funds. While PPF and other tax saving options give returns up to 8% returns, good ELSS mutual funds can fetch you up to 12% returns. You can look for Axis Long Term Equity fund, DSP BR Tax Saver fund, Franklin India Tax shield fund etc.,
Who can invest: Investors who can take some risk, but expecting to get high returns up to 12% along with tax savings u/s 80C, can invest in these top ELSS funds.
7) Invest in Debt Funds rather than bank FD
If you are looking to invest in fixed income investment option, instead of investing in bank FD, you can look for debt funds. For short term of 1 month to 1 year, liquid funds can fetch you higher returns of 4% to 10% per annum. For medium term of 1 year to 5 years, short term and long term debt funds can give you high returns. I have been investing in short term to long term funds and in last 1.5 years, I got returns of over 15%. This is the smart way to invest your funds. Some of the best liquid funds are HDFC liquid fund, ICICI Pru liquid fund, Kotak Liquid plan fund etc.,
8) Invest in Low Cost ULIP
Prior to 2010, ULIPs had more than 35% premium allocation and other charges for the first year and up to 8% at later years. Now it gradually reduced and you can see that some of the ULIP’s are now offered with zero premium allocation charges. These new online ULIP’s invest in debt and equity and provide higher returns up to 12% per annum. If you believe investing in ULIP is a good option, consider investing in low cost ULIP’s like HDFC click 2 retire plan etc.,
9) Tax Free Bonds for higher post tax returns
You might be investing in bank FD or NCD’s. However, if you are high tax bracket, this would give you low returns of below 6%. If you are in 30% or 20% tax bracket, the best way to get tax free returns is investing in tax free bonds. Last year, tax free bonds offered up to 9% returns. Now in this year, new tax free bond issues are offering only around 7.5%. Consider investing in tax free bonds either by direct issue or from secondary market which are available at some premium rates now. These can help you to get high tax free returns in India.
Who can invest: Investors who are at 20% or 30% tax bracket and expecting to invest in fixed income option can consider these tax free bonds as one of the best investment options.
10) Post Office MIS Scheme
Post office MIS offers fixed returns per month for 5 years. Currently PO MIS offers 7.8% returns per annum. One of the good investment option to get monthly fixed income.
Who can invest: If you are in low tax bracket and low risk take and want to invest lump sum and get fixed returns per month, you can look for this option.
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Suresh Best High Return Investment Options in India
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Nice
List of established indian companies who pay 10 to 12./. Interest per annum located in Bangalore
Bitcoin super super investment
Hi
I am new to this kind of investments as suggested but would be interested if you can help me out.
As i am having the capacity to invest 20 k every month.
In return would prefer to get good returns and Tax saving benefits with low risk.
Kindly suggest.
go for bajaj Ulip
Useful
I want to invest in MFs and Stock Market for around 10K a month.
Please suggest few good large cap MFs and also some stocks which could give me decent 10-15 % return annually.
Also guide me how I can invest in the MFs Direct Scheme.
I can give minimum 10% yearly return on amount invested by you.
I want to invest 10k per month. Pls suggest me for safe and High returns with tax benefits.
Tenure is 1 to 2 years.
I would like to move
1. Mutual funds (or)
2. Yes bank recurring deposit scheme (or)
3. Post office recurring deposit scheme (or)
4. Invest in chit funds.
Pls suggest me.
Investment with high returns
Sureshji,
First of all.I thank you for valueble information provide us on 13-02-2017
that is 10 stocks give you good return in next 3 months.after three months, it given good result.
Thank you Vasant
good informative reading thanks
Thank you Ashok.
Can u suggest, where I can invest around 2 lakh with maximum return and minimum risk.
Dear sureshji,Your articles are very educative and helpful.
I would request you to send all your articles to my E-mail ID:kondaramarao56@gmail.com
Thanks Ramarao, you can opt for email subscription available on top right hand side. You would get link to your mail which you need to confirm.
I want to invest monthly part of my salary, which would be my right choice for investment? If any certain situation I need to withdraw my savings and also tax savings ,which is best for me?
Good Post
U should go for HDFC prudential fund monthly dividend pay out. If u invest 1 lakh, you will get around Rs.990 per month which is exempted from IT. Meanwhile, NAV will also go up. However, pls see riskometer also. Best of luck.
P K Rajmohanan
A must read for all. Good post.
Thank you Ranu
I WANT TO INVEST 30-50 THOUSANDS PLZ TELL ME WHERE I CAN INVEST AND MAKE MONEY WITHOUT ANY LOSS OR RISK
I want to invest 40-50 Thousand plztell me where I can invest And make money without any loss rosk.
Hello,
I need a help in investment, please help me,
Which is the best option for maximum return for 2lakh rupees investment for short term period, wanted ti invest for 2-3 years
Or
Any plan without locking period?
Dear Sir,
I want to Invest Rs.2 lakh for getting highter Returns of 15% to 18% per annum.
Advice.
Fine
Sir, I have invest in mutual fund, but i loose my bank details, now i want to withdraw the fund, i just have account no of fund , you may help me to withdrawal fund.
Please call up the Fund house with whom you have Invested and share your PAN number, they should be able to trace the Investment details.
Kindly call the customer care number quote your correct personal details they will be able to help you or else simply walk-in to any nearby branch of the respective company. They will guide you with the procedure.
dear bala,
you should hav folio number of mutual fund .u can visit to nearest branch frm where u bought it &update ur new bank account detail.mf scheme send monthly acount statement in ur email id frm where u cn get ur folio number.
vivek
I want to start a small business with Rs 10 Lakhs. I am an NRI and would like to know what kind of Investment i should plan with good returns on Monthly basis.
I have Rs.3-5 lakhs to invest. which is the best investment plans available with a good return per month?
if anyone knows,please let me know.
Want to invest in safe tax free investment please guide. Or any monthly income plan.
I plan to invest in PPF (Public Provident Fund). Consider I am doing an investment of 100000 in FY 2017-18. And at that time suppose PPF interest rate is 8.1%. So, next year government decided to slash the PPF interest rate to 7.8% i.e. in FY 2018-19. So, my investment of 2017-18 will carry the interest rate of 8.1% as per my booking or it will become 7.8% from 2018-19. So, question is investment done on year 1 will have fixed interest rate for next 15 years or it will be floating.
EPF interest is Floating Rate
The rate of interest for 2017-18 will be 7.8 and not 8.1.
My age is 45 I would like to invest for higher return for minimum locking period, so please suggest me to how and where I can invest
dear sir i want to invest in mutual fund in SIP. so please tell me, where I can invest & how??
i want to safe invest for monthly 1% expect ,, any buddy guide me,,, my mail id dipu9110@gmail.com
Hello Suresh,
I would like to get a tax-free “income” of 25K starting from 2020 Jan. Could you pl. let me know how much I need to invest
1. lump sum investment in 2017 Jan
2. SIP starting from 2017 Jan till 2020 Jan
in what schemes?
Thanks,
harish
Hi, great article on investment. I am a prospective investor and was wondering, is cibil score important for investors as well because it is a dreaded word in the borrower’s community.
hello
i have invest in every month 2000 for next 20 year give me a best rerun in my future and help for my 45 age
Hello sir,
I want to invest 10 lac in my mother's name in post office fd for 5 yrs; 5 lac each in my and 2 of my brothers name and 4.5 lac in po mis for 5 yrs so that i recieve 3.2 k per month..also I am planning to invest 6 k per month in HDFC BALANCED MUTUAL FUND; Also 10 lakh in Bajaj company fd for 2 years for my cousin sisters marriage…do u think I should stick to my invest options or should I introspect more…also can you suggest me some more investment options..and plz give an insight on company fd plz
DEBYENDU
Also I am thinking of buying NSC's worth 10 lacs..I am not interested in bank fd because of very low interest rates…plz give ur suggestions.
why don't u invest in good stocks which gives u massive returns instead of investing in FD
Dear Sir,
Can you please suggest 2 mutual fund schemes where I would park my fund to 2 lacs & invest in STP mode to the other. I am 50 yrs & looking for a stable growth of money.
Hi Shubhendu, You can invest in debt funds or MIP mutual funds. In MIP funds segment, you can invest in Birla SL MIP II Wealth 25 or ICICI Pru MIP 25
Hi Suresh,
Thanks very much for the assistance.I would like to know how is TDS calculated for any Mutual funds in India for an NRI.I am NRI and I am not sure if I can go ahead and invest in what you are suggesting.Is that all applicable for NRIs as well?
I tried getting this answer from you for almost 3 times but I am not sure why my comments not seen below the blogs I have posted.
Hi Anuradha, Not sure when you would have posted the comment. There is no differentiation between resident and NRI’s for taxation point of view for MF returns. Pls see this article about MF taxation. The change is debt funds are taxed as long term after 36 months. Otherwise, this artilce explains about how MF returns are taxed. https://myinvestmentideas.com/2013/04/how-mutual-fund-returns-are-taxed/
hai suresh thanks.pls give me best saving schemes information on my email address
Hi Suresh ji. Wonderful article once again.
Waiting for your article on P2P lending in India.
Next 1-2 weeks for sure Akshay.
Recently I found out your site & was going thru mostly all your links and this link too . Mostly all the articles are very good . I have enjoyed and learnt more things too.
I have one query here , are you referring to “Liquid Fund” or “Long /Short Term Debt Fund” like HDFC High Interest Fund in Column -7 of “Invest in Debt Funds rather than Bank FD” ?
Because the liquid funds mostly returns around 8-9% , but Debt Long term returns upto 12-15% .Checked with Moneycontrol and getting confused .
Or you mean to say all are same under the debt fund only ?
Need to know …do we invest in HDFC High Interest Fund (14%) or ICICI Prudential Liquid (8-9%),HDFC Liquid Fund (8-9%).
Please suggest ..
Thank you Bikash. I counted liquid funds under debt segment. Since if you are looking for very short term, people can invest in liquid funds. If you are investing for 3m to 1 year, one can look for short term funds. The funds indicated by you are good. Go ahead and invest in them.
very informative…keep it up ….
Thank you Sandip. Pls share it with your friends on FB or Twitter if you like this post.
Hello Suresh,
I am curious to know the debt funds that gave you 15% in the last 1 to 1.5years.
Thanks
harish
Harish, See my article on Monday.
Hi Suresh,
This is such an informative article.
Sorry to point out a small typo in the article – in Mid-cap and small-cap funds, you have mentioned it as HDFC Midcap “Alps” (instead of Opps or Opportunities) fund; people might get confused and search for it.
Thanks,
Joseph
Thank you Joseph, I just corrected it. BTW, what do you do? Can you pls give 2-3 suggestions to improve my blog further?
Can you suggest, Is sector funds good options here ?? I do have MF investment in UTI Transportation and Logistics Growth fund. What is the long term expectation here.
Hi Surya, Sector funds provide very high returns, however one need to keep an eye on this. e.g. IT sector performs well in 1 year and it could be laggard in another year. You should take call based on industry trends.
Nice. Very informative.
Thank you
Suresh Nice article. Thanks for enlightening us with all the options.
Thank you vivek Soni ji. I have seen your smiling face on FB. No change even after 3 years.