Investment planning is an essential and crucial part of our life. It is necessary to understand your financial requirements and goals and plan the moves accordingly. Good financial planning ensures that your investment is safe and you are not cutting heavily on your daily living expenses. Having said that, it is crucial to look for financial options that are the best mix of safety and returns. You must invest in at least one such financial plan which is highly secure and possesses no or low risk, and, at the same time, yields high returns on your investment.

Several modern and traditional options for safe investments with high returns in India exist. However, an investor needs to check all the aspects of investing money into savings plans. Thus if you are looking for an option that offers safe investments with high returns in India, then you must look at the five options mentioned below.

5 Safe Investments With High Returns In India 2022

Since we are still in the process of tackling a pandemic across the globe, gearing up on your financial front is very important. However, it must be noted that recently, people have been opting for more risk-free options due to the uncertainty in different sectors. However, safer market options like bonds, debts, and securities are still an excellent pick for many investors.

Let’s have a look at the 5 Safe investments with high returns in India 2022:

1. Guaranteed Savings Plan

It is one of those plans that offer better, safe and guaranteed returns as the name suggests in 2022. A guaranteed savings plan is a savings and protection-oriented plan that offers benefits to the policyholder both on maturity and on death. The best part about this plan is the return you get on your investment and other bonuses. Moreover, you also have the option to add insurance riders to this plan to enhance your plan’s protection cover further.

2.Public Provident Fund (PPF)

Government-backed schemes have served as the safest investment option for a very long time. Public Provident Fund (PPF) is one of the most reliable ones. It is a long-term savings scheme with a lock-in period of 15 years. However, PPF yields a high return on investment compared to other options. It is a great way of building a retirement corpus for yourself while saving taxes. Since PPF offers a very high-interest rate while offering tax exemption on the corpus build and the returns gained, it is considered one of the safest investments with high returns in India.

Additionally, you can extend the investment tenure for as much as five years. The best part about PPF is that you can start investing in it from as low as ₹500 to up to ₹1.5 lacs in one financial year.

3. Senior Citizen Savings Scheme (SCSS)

SCSS (Senior Citizens Savings Scheme) is a post office savings scheme for senior citizens that provides investors with security and a predictable income. It’s also a tax-saving strategy. It’s ideal for retirees seeking a low-risk investment. Section 80C of the Income Tax Act allows for a tax deduction for assets in SCSS. On the other hand, interest is taxed according to the individual’s tax bracket.

SCSS proves to be among the safe investments with high returns in India as it is backed by the Government and hence falls under the category of low-risk investment options.

4. Fixed Deposits (Bank FDs)

Fixed deposits are the most common form of a savings plan and the simplest method of safe investments with high returns in India. A bank FD offers good interest rate than a regular savings account. However, the decreasing rate of interest is still a concern for many. We recommend that if you are looking for a short-term investment with good liquidity, you can consider FDs. However, going for a Guaranteed Savings Plan would be a good move since they offer tax benefits, long-term investment and excellent returns.

5. National Pension Scheme

A great government-backed investment option is the best for individuals looking to invest money to secure their future after retirement. The national pension scheme provides a great interest rate of 8% to 10%. The minimum sum you can contribute to this fund is ₹6,000 in a year, i.e. roughly ₹500 per month. Any Indian citizen who is 18 years to 60 years old can open an NPS account. The policy matures when the policyholder attains an age of 60 and can be extended to 70 years. It also offers tax savings options. Thus it is a great long-term savings plan for many individuals.

So if you want to invest your hard-earned money in safe schemes, then the plans mentioned above are your best bets. Experts suggest that you must keep a vivid portfolio where you have all short-term, mid-term, and long-term policies. Modern investment options like ULIPs and Guaranteed Savings Plans are some of the policies that low-risk investors must indeed explore before finalizing a savings plan for their financial goal.

- A Consumer Education Initiative series by Kotak Life

Written By :

Amit Raje

Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.

Reviewed By :

Prasad Pimple

Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

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