5 min read
Updated on Jan 31, 2023
What factors do you consider while looking for various investment options? The investment market in India is complete with numerous choices to allow financial security with high gain in terms of returns. However, if you are someone who is risk-averse, you may look for choices offering safe investment options. And hence, it is important to consider aspects like your financial goals, liquidity needs, investment duration and the risk factors while searching for investment plans.
In the present situation, it has become very important for all of us to plan safe investments to get good and assured returns.
Among the many investment options which present guaranteed high returns, ULIP is considered a safe one. ULIP or Unit Linked Insurance plan is an investment product that allows the security of insurance. This plan provides financial security to a family along with providing the investor with the option of wealth multiplying opportunity. Under ULIP, one part of the investment done by the investor is used for life coverage, while the other one is invested in various options like equity and debt funds to gain high returns. Hence, the plan could guarantee returns on investment along with offering tax benefits to the investor.
The foremost benefit of investing in capital guarantee plans is that they allow 100 percent security of your investment. The capital guarantee plans are basically ULIP plans with a major focus on protecting the principal investment of the investor from losses. Being ULIPs, these plans allow a combination of insurance and investment with a 50 – 60 % ratio. Here again, the equity and debt funds are used to invest a portion of the amount in the market, while the rest is used for your insurance security. The policy comes with 10 years tenure with a 5 years premium paying term.
While considering safe investment plans with high returns, Fixed Deposit is among the top options that comes to mind of almost every Indian. The Bank FDs allow a high rate of interest. In case you opt for a 5 years FD plan, you can enjoy tax-benefits under Section 80C of IT Act 1961. Senior citizens, however, get a higher rate of interest for FDs as compared to the rest.
Some features of FD include:
PPF is one of the best safe investment options in India backed by the government. It is available with a lock-in period of 15 years. This is another high-return plan with a safe investment option. A long-term policy, PPF supports the investor to create a corpus for retirement along with offering tax benefits. PPF is not a market-linked investment. However, the plan offers guaranteed return over the long term.
Some features of the plan are:
NPS is yet again a government-backed best safe investment in India, especially meant to secure one’s life after retirement. This scheme comes under the purview of PFRDA or the Pension Fund Regulatory and Development Authority of India. Under this scheme, whatever contribution the investor makes is invested in debt and equity funds which are market linked securities. The plan aims to provide maximum gain and profitable returns to the investor with 8-10% interest rate at present.
Some features of the plan are:
|Investment||Return on Investment||Risk||Suits Best|
|Capital Guarantee Plan||Moderate to High Returns||Low||Everyone|
|Public Provident Fund (PPF)||High Returns||Nil||Suits Investors Who are Risk Averse|
|Bank FDs||Medium Returns||Nil||Suits Investors Who are Risk Averse|
|ULIP||Moderate to High Returns||Medium||Everyone|
To Sum Up
Uncertainties in life can make it a dreadful experience for many. Hence, securing your future against such uncertainties is important. To do so, you must invest in financial instruments which allow good returns with low risks. But before you jump into any investment option, it is better to understand your financial goals and choose an option depending on your risk appetite and other factors. These safe investment options with high returns allow investors to ensure a strong financial cushion for their long-term financial goals.
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When it comes to best safe investments with high returns in India, there are a large number of plans available. But if you talk about safe investment options offering guaranteed return benefit, you must consider the below mentioned options:
Bank Fixed Deposits
Public Provident Fund
Capital Guarantee Plan
Yes, there are of course many benefits of making safe investment plans. It supports the investor to secure their fund and allow them the opportunity to generate a financial cushion in the long run. This way they can gain a regular return on investment. Further, many such investment options allow tax benefits also.
Capital Guarantee Solution Plans are known to offer better returns than FDs. The Capital Guarantee Plans are generally the ULIPs, which are actually a good combination of insurance and investment. They offer the advantage of market return benefits and at the same time allow 100 percent guarantee of funds at policy maturity. So, the insured receive the entire payout along with added benefits at the time of maturity.
Normally, mutual funds with large caps allow higher returns on investment. Besides, stocks, bonds, and direct equity are other common investment products, which allow high returns. However, it is important to remember that all the high-return investment options offer high-risks as well.
Yes, there are some safe tax saving investment options available in India, such as;
Equity Linked Savings Scheme (ELSS)
National Savings Certificate
Public Provident Fund (PPF)
Sukanya Samriddhi Yojana (SSY)
Life Insurance Plan
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