The Indian economy has been expanding rapidly and the investments in the country are also increasing. Every individual has a different risk tolerance level and usually invests in different instruments to mitigate risk.
Are you guys confused about what to invest in? Here are Top 5 Safe Investments With High Returns In India for Beginners.
So let’s get started.
Investing In Mutual Funds
Investing in managed mutual funds or actively managed mutual funds, both will deliver returns that match your age and risk level, but the active funds will often have better returns.
Mutual fund is a collective investment vehicle of a group of investors collaborating to pool their assets and profit from the pool. It can be seen as a company of companies where each investor owns different stocks of the company.
In India, investing in mutual funds is very popular. The Indian Mutual Fund Industry has grown at an average rate of 17% in the last two decades.
Investing In Fixed Deposits
Saving in a bank account that offers a guaranteed return is a good start, but high-quality fixed deposit accounts can offer even higher returns.
Fixed deposit accounts are generally tied to a specific rate of interest, and as long as the rate remains within the stated range, the money will continue to grow with interest each month.
Fixed deposit accounts with small interest rates of just 2–3 percent are available in the developed world, but their advantages can be gained in emerging markets, too.
Even though you may have to work slightly harder to earn that 5–6 percent interest, the returns can be huge as high as 20 percent per year.
Public Provident Fund
PPF has been around for 50 years now. It is the oldest investment product in India to have survived the financial crisis of 2008. PPF is a very well-known investment instrument in India and has consistently offered high returns, which are much higher than almost any other financial instrument.
It is important to understand how PPF works before investing in it. One needs to deposit a particular amount every month, until the 10th year of continuous contribution, after which one can withdraw money or continue making payments till their retirement age.
The investor also gets an option of withdrawing only 10% of their total invested amount at once after 15 years of continuous contributions, within a five year time frame.
Investing In Shares
One of the safest asset classes in the world is the shares of listed companies. They carry no real risk of loss because they are traded and the value is determined by the markets.
In most cases the differences in returns will be very minor, which means if they even show up at all, it’s because one investment beat another.
A top performer like Tata Steel Ltd is bound to be compared with a low-risk stock like Idea Cellular Ltd. It’s the one that will be judged the best.
Systematic investment plan (SIP)
Investing in the stock market requires time and patience. However, there are some ways to make your investment work for you and not against you. One such technique is A Systematic Investment Plan (SIP).
An SIP is a strategy of investing a fixed amount on a regular basis for a predetermined period of time, with the intention to generate wealth over the long term.
A SIP aims to reduce risk and volatility by diversifying your portfolio. It helps in reducing potential losses with limited gains or even limited losses with significant gains.
It also focuses on both capital preservation and capital appreciation, which will help you earn more stocks over time without putting too much money at risk at one go.
Frequently asked questions
What are types of mutual funds in India?
- Debt fund
- Largecap
- Midcap
- Smallcap
- Overseas
- Thematic
What stock should I Invest in as a beginners ?
- Amazon
- Apple
- Disney
- Microsoft
What is the lock in period for fixed deposit?
5 years
Can I withdraw my SIP anytime?
Yes, you can withdraw investments periodically unless they are under the lock-in period.
Who is eligible for PPF account?
Any Indian citizen can open the account in his own name or on behalf of a minor and can open only one account in his name.
So here are the top 5 safe investments with returns in India. If you’re a young investor, a high-yield portfolio could give you a dependable source of income that is low-risk and easy to buy and sell.
So if you liked this blog do share your thoughts or if you have any questions related to this topic drop your queries in the comment section below .
