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    By: Bijan Biswal
    God meets daily needs daily. Not weekly or annually. He will give you what you need when it is needed.
    By: Bijan Biswal
    Life insurance

    When you are planning your finances it is essential to look for investment tools that offer financial security along with sizeable returns. Currently, there is an extensive range of investment tools available in the market. To be able to pick the right one you need to consider factors like cash flow, risk appetite, financial objectives, and investment horizon.

    At present India's economy is going through a bit of high and lows. Hence, investors must choose schemes accordingly that will give guaranteed returns. Read on to know more about some of the safe investments with high returns in India.

    Bank Fixed Deposit

    A bank fixed deposit is one of the most preferred investment options. It will keep your investment safe and also provide high returns in the long run. Unlike regular savings accounts, Bank FD schemes provide higher interest rates. Besides, you also get tax exemption on 5 year FD schemes if it comes under section 80C of the Income Tax Act 1961. Senior citizens are entitled to a higher interest rate. Although the interest rate of fixed deposit schemes varies depending on factors like investment terms, amount, residential status, and bank. There is a specific lock-in period for FD plans if you want to withdraw your money before the completion of the specified period; you need to pay a penalty fee to the bank. It is one of the most effective and safest investment options for those with a low-risk appetite. 

    Unit Linked Insurance Plan

    Unit Linked Insurance plan is another great option that keeps the principal amount safe and guarantees a high return. It offers the benefits of both insurance plans and investment schemes. You invest in a scheme that helps you in growing your wealth along with financial security. ULIP plans invest a portion of the premium amount in the market-linked securities to guarantee high returns. The other half of the premium is used for providing life cover for the applicant. You earn guaranteed returns in the form of maturity amount. Benefits earned from a ULIP plan are also tax exempted under section 80C of The Income Tax Act.

    Public Provident Fund

    A public provident fund is a government-aided investment scheme with a lock-in period of 15 years. It is regarded as one of the safest and high return schemes in the country. If you wish to invest in a long-term investment plan then PPF is the right scheme for you. Moreover, the benefits from a PPF scheme are tax exempted. PPF scheme investments do not invest in market-linked products and hence can provide guaranteed returns over a period.

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    Capital Guarantee Plan

    Capital Guarantee plans are similar to ULIP plans and primarily focus on safeguarding the principal investment of the applicant. These schemes keep your investment safe against economic downturns. Capital Guarantee plan is a balanced combination of investment and insurance. Here 50% of the capital investment is used in capital protection and the rest is put in equity schemes. Usually, the policy term is around 10 years and the applicant pays the premium for 5 years.

    It is one of the safest investment tools that offer a guaranteed 5% return on investment. One of the most notable benefits of this plan is at the time of maturity policyholders get back the entire premium amount together with additional benefits. These schemes mostly invest in conservative instruments to offer guaranteed returns and capital appreciation. The maturity value of the plan is largely dependent on the market performance and return of the scheme after the specified policy term.

    National Pension Scheme

    It is a government-aided pension scheme that provides much-needed financial support and security to retired individuals. The pension fund regulatory and development authority of India is in charge of this scheme.  The contributions of the applicant are invested in market-linked assets like debt and equity plans.

    One can start an NPS scheme with an annual contribution of ₹6000. You can also choose to contribute a minimum of ₹500 every month. Indian citizens belonging to the age group 18 to 60 years can start a national pension scheme. It is one of the safest investment options that provide high returns over a long tenure. It also serves as a remunerative tax-saving tool.

    Fixed investment plans can provide guaranteed income and returns. It gives you financial security particularly when the economy is going through difficult times. Investment plans allow you to grow your capital investment and also take advantage of tax exemption at the same time. Safe investments for seniors help in building a large corpus over a long period through small contributions. Pension schemes also provide a series of additional benefits like minimum guaranteed payout, death benefit, based on the contract. In this current uncertain time, everyone is looking for a secure financial future. Although to do so you need to have a proper understanding of where to invest money to get good returns. Through investing in safe investment options that provide high returns you can eventually raise sizeable wealth for your future.


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Bijan BiswalThursday , June 10 , 2021


    Mr Bijan is the man behind www.paisababu.com. He is a well qualified (B.com, MCA, MBA, LLB ) and entrepreneur having more than 20 years expertise in Business. He engaged in blogging for many years. Paisababu.com blog is ranked as one of the Top Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money.to make ware people about various financial products in India for their use. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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