Top 5 Best Investment Options with High Returns
Investing is an essential part of wealth-creation, which helps you beat inflation to fulfil your financial goals and also stabilise your financial future. Instead of letting money lie idle in your bank accounts, you can invest in different avenues like stocks, equities, mutual funds, fixed deposit, or more.
The investment avenues you must choose, depend on your investment goals, liquidity needs, investment horizon and risk appetite. Out of these, risk appetite is a major factor to consider, especially in today’s times. To help you decide the right option, here’s a rundown on the best investments for you, based on your risk appetite.
How risk appetite affects your investment choices?
Most investments carry a certain level of risk and volatility, which also affects the returns. Usually, returns on an investment are more, when the levels of risk are high. However, there is a high risk of losses in such investments.
Thus, investment decisions are often taken on the basis of investor’s risk appetite, and we can classify investments based on different risk levels. Here’s a look at different investments, based on different risk levels
Low-risk investments
Investors with lower risk tolerance, seeking little to no volatility in their investment portfolios, look for low-risk investment options. Often, retirees who’ve spent decades creating a nest egg, fall under this category. Fixed-income instruments like bonds, debentures, Fixed Deposit and Government savings schemes fall under these investment categories, and suit the needs of low-risk investors.
Low-risk investments are not linked to the stock market movements and are usually governed by the interest rate movements of financiers. However, the returns on these instruments are usually assured, and you may need to lock-in your investment for a long time to earn substantial returns on these investment avenues.
Medium-risk investments
Investors looking for a moderate level of risk, but relatively higher returns as compared to fixed-income instruments, look for medium-risk investment options. These are investments that may have a certain level of risk but the returns on these investments are also higher. Debt funds, balanced mutual funds, and index funds fall in this category.
Such instruments carry an element of debt and stability, but the volatilities associated with their returns may also lead to losses in principal amount. Due to the irregularities in earnings on these instruments, getting a regular fixed income from these instruments is not possible.
High-risk investments
For market-savvy investors with a deeper understanding of securities, and a high tolerance for risk, these high-risk investments work best. In these investments, there is no limit to the gains, but the level of risk is also very high. Volatile investment instruments like stocks, equity mutual funds, and derivatives fall in this category.
The return on these instruments can give huge returns, but it is important to know when to put your money in a volatile environment, and know when to stop and pull out your money with high returns. The quantity and timing of returns on these instruments are not fixed.
Best Investment Options in India
Regardless of your risk appetite, it is important to choose the right instruments to grow your savings. To help you plan where to invest, here’s a look at the top 10 investment instruments chosen by investors in India.
- Stocks: As equity investments that represent a share of ownership in a company or entity, stocks are one of the best investment avenues for long-term investors. These can be traded in a marketplace called the ‘Stock Market’, where all trades are done electronically.
- Fixed Deposit: For investors looking for lucrative returns with lowest risk, Fixed Deposit (or FD) is one of the best investment avenues. By investing in a Fixed Deposit, you can get assured returns at fixed intervals of time. This investment avenue is one of the most preferred options in India, due to the convenience and flexibility it offers. Even investors with high risk appetite choose to invest in FD to diversify their investments and stabilize their portfolio.
- Mutual Funds: These are collective investment vehicles managed by a fund manager which pools people’s money and invests in stocks and bonds of various companies and create a return. With the convenience of low initial investments, mutual funds are volatile investment avenues, that are best suited for medium-risk investors.
- Senior Citizen Savings Scheme: As a government-sponsored scheme for individuals above 60 years of age, Senior Citizen Savings Scheme is a great long-term saving option for retirees. It is a great option to get steady and secure income, and senior citizens can get a high and steady rate of interest, as prescribed by the government from time to time.
- Public Provident Fund: Public Provident Fund is one of the most common and trusted investment plans in India. It pays interest rate annually and requires a minimum investment amount of Rs 500 per annum. It has a life of 15 years with partial withdrawals allowed of the corpus at various points. This option also pays a high and steady rate of interest as prescribed the government from time to time.
Here’s a summary of these investments, on the basis of risk, tenor, liquidity and returns you can get:
Top 5 Best Investment Options In India
|
| |
Risk |
Tenor |
Liquidity |
Returns |
| Stocks |
High |
Can be sold anytime |
High |
Market-linked |
| Fixed Deposit |
Low |
7 days to 10 years |
Premature exit |
Assured |
| Mutual Fund |
Moderate-High |
Open end* |
High |
Market-linked |
| Senior Citizens’ Saving Scheme |
Low |
5 years |
Low |
7.4% |
| PPF |
Low |
15 years |
Partial withdrawals** |
7.1% |
| *ELSS comes with 3-year lock-in **Subject to conditions |
Where should I invest short term savings?
Investments whose tenor ranges from 7 days to 24 months are graded as short-term savings. Here are some short-term savings options, for you to invest in:
- Fixed Deposit: FDs provide assured returns at fixed intervals. The interest payout can be received periodically or upon maturity based on the plan selected. Available tenor range is from 12 months to 60 months. Bajaj Finance offers assured returns up to 6.75%, basis the plan you choose
- Mutual Funds: Your funds are invested in stocks and equities through a mutual fund manager. Investing in mutual funds earn you higher dividends, taking in consideration the market fluctuations. They are highly liquid and the tenor for investment is open end subject to conditions.
- Stocks Investment: This instrument for investment is for investors with high-risk appetite. Carefully investing in stocks can get you higher returns even on small investments. Stocks Investment liquidity is high and they can be sold any time. Thus, it is a good instrument for short term savings.
While other short-term investments carry higher risk, Bajaj Finance offers assured returns with the convenience of investing as per your horizon.
Which investment gives highest returns?
Here are some of the investment options offering highest returns:
- Fixed Deposit (FD) - Bajaj Finance Fixed Deposit offers up to 6.75% interest rate, which is higher than other financial institutions. The tenor of investment in FD at Bajaj Finance ranges from 12 months to 60 months.
- Public Provident Fund (PPF) - A PPF enables customers to earn tax free interest via compounding and reaps higher returns due to the long tenor of the investment. The minimum investment amount in a PPF is ₹500, tenor of the investment is 15 years, with partial withdrawal option, subject to conditions.
- Senior Citizens’ Saving Scheme (SCSS) - This scheme allows senior citizens or early retirees to invest their funds to attain a constant income after retirement. The initial tenor of lock in is 5 years, which is extendable with immutable interest rate. Also, Senior Citizens get an additional rate benefit of up to 0.25%, greater than regular FD interest rates.
- Mutual Funds - Investing in Mutual Funds gets you attractive returns as your funds are invested in stock and equities after careful consideration of market fluctuations. Their liquidity is high, and tenor is open ended.
- Stocks- Investing in Stocks earns your higher returns on minimum funds. Though susceptible to high market risk, they are highly liquid and can be sold anytime.
While each investment option has its own advantages, choosing to invest in a Bajaj Finance FD can help you get the best returns with highest safety of your deposit.
What is the safest investment with the highest return?
The safest investment avenues usually offer fixed returns. Some of the safe options that you can choose from, are listed below:
- Fixed Deposits - FDs are the most secure alternative to safeguard your money and get assured returns at fixed intervals of time, based on the term plan selected. The rate of interest ranges from 6.15% to 6.75% based on the plan of the FD you choose, with Bajaj Finance.
- Senior Citizens’ Saving Scheme - It’s a low-risk investment for the retirees above 60 years of age. Senior citizens get a steady recurrent income in this long-term investment at higher interest rates at 7.25%.
- Public Provident Fund - The interest is paid annually, and the funds are locked in for a period of 15 years with partial withdrawal option accessible, subject to conditions. Assured returns on PPF at 7.1% are available.
In addition to safe investment options listed above, one can also invest in market-linked instruments like stocks and mutual funds, which offer higher returns, albeit with greater risk. However, investing in a Bajaj Finance online FD can be more rewarding, without incurring any losses due to risk of capital.
Why Bajaj Finance FD is the best investment option?
Looking at various options, FD has been a favoured choice of investment for people, all along. Along with the convenience of investing, flexibility and assurance of returns, FD is a boon to investors of all age groups and income levels. The recent fall in repo rates has resulted in lowering of FD rates in several banks, but if you’re looking for higher interest rates, you can invest in NBFC Fixed Deposit. These NBFC FDs offer higher interest rates than bank FDs. Bajaj Finance is one such NBFC that offers lucrative interest rates of up to 6.75%, ensuring stable and secure growth for your savings.
Features of Bajaj Finance Fixed Deposit
| Interest Rate |
Ranging from 5.65% to 6.75% |
| Minimum Tenor |
1 Year |
| Maximum Tenor |
5 Years |
| Deposit Amount |
Minimum Rs. 25,000 |
| Application Process |
Easy online paperless process |
| Online Payment Options |
Net Banking and UPI |
Regardless of your risk type, you can consider investing in a Bajaj Finance Fixed Deposit, and reap these benefits:
- High Interest Rates - The interest rate offered is one of the highest in the Indian financial market. It is usually 1-2% higher than bank FD at the same tenor. Bajaj Finance FD offers attractive interest rates of up to 6.75% and you can earn additional 0.10% on renewing your deposits.
- Safety Ratings: This FD is rated highest on safety with ratings of FAAA by CRISIL and MAAA by ICRA, which indicates highest safety of your deposit.
- Online Fixed Deposit: Investing in a Bajaj Finance FD is now easier than ever, with an end-to-end paperless online process that lets you invest from the comfort of your home. This facility is available for both – existing and new customers. What’s more – you can get additional benefits of 0.10% higher interest rate on investing online.
- Periodic payout options: When investing in this FD, you can choose to get periodic payouts, based on your requirements. For those looking to create a higher corpus, cumulative FD works best, wherein you receive your interest payouts at maturity. On the other hand, for those looking to get periodic payouts, non-cumulative FD is a great option, wherein you can choose to get payouts on a monthly, quarterly, half-yearly or annual basis.
- Loan against FD: For those looking to fund emergencies, investing in a Bajaj Finance FD can be a great choice. Not only can you withdraw prematurely after completion of minimum lock-in period, but you can also avail a Loan against FD to fund unforeseen expenses.
Annual rate of interest valid for deposits up to Rs.5 crore (w.e.f 12 May 2021)
|
| Tenor in months |
Minimum deposit (in Rs.) |
Cumulative |
Non-Cumulative |
| Monthly |
Quarterly |
Half Yearly |
Annual |
| 12 – 23 |
25,000 |
5.65% |
5.51% |
5.53% |
5.57% |
5.65% |
| 24 – 35 |
6.10% |
5.94% |
5.97% |
6.01% |
6.10% |
| 36 - 60 |
6.50% |
6.31% |
6.35% |
6.40% |
6.50% |
Rate benefits basis customer category (12 May 2021)
+ 0.25% for senior citizens
+ 0.10% for customers opening FD through online mode
Note: Senior citizens investing in a Bajaj Finance online FD will only receive one benefit (rate benefit of 0.25%), regardless of the mode of investment.
Renewal:
+0.10% over and above the applicable rate of interest/card rate at the time of renewal of deposit. In case of online renewal, only one benefit (renewal benefit of 0.10%) will be extended.
With the new online facilities, investing in a Bajaj Finance FD is easier than ever. Simply lock-in to attractive interest rates offered by this FD, and make your savings grow.
