Best Investment Plans with High Returns

High Returns Plans in India

These investment options with high returns cater to different financial goals and risk appetites. Choosing the best investment plan with high returns depends on your financial objectives and risk tolerance. If you are looking for the best investment plan with high returns in India, here are some of the most popular options to explore:

Mid-cap and Small-cap Mutual Fund

Mid-cap and small-cap mutual funds invest in medium and small-sized companies that have high growth potential. Unlike large-cap funds, which invest in well-established companies, these funds target businesses that are still expanding. This makes them a great option for investors with a medium-to-high risk appetite who are willing to stay invested for 5-10 years. The potential returns are high, but the risk factor is also significant, hence, it is essential to diversify your portfolio.

Unit Linked Insurance Plans (ULIPs)

With ULIPs, you get a combination of investment and insurance benefits. A portion of the premium is invested in equity or debt funds, while the remaining provides life cover. They are a great long-term investment option, offering tax benefits under Section 80C of the Income Tax Act 1961. The returns depend on market performance, but ULIPs also offer flexibility in choosing the type of funds based on risk appetite.

Company Fixed Deposit Schemes

Company Fixed Deposits (CFDs) are investment options provided by Non-Banking Financial Companies (NBFCs) and corporations. They usually offer higher interest rates than traditional bank fixed deposits, with returns going up to 12% per annum. CFDs come with varying tenures ranging from 1 to 5 years, making them ideal for investors looking for stable yet high returns. However, since these deposits are not backed by the government like bank FDs, it is crucial to invest in reputed companies with strong financials.

Stocks

Stocks are one of the most well-known investment options for high returns. Investing in stocks means buying shares of a company and becoming a part-owner. While stock market investments can be risky, they also offer high returns, especially in the long run. Investors with a long term vision (5-10 years) and a high-risk appetite can benefit significantly from stock investments. It is essential to research and invest in companies with strong fundamentals to maximize gains while managing risks.

Non-Convertible Debentures (NCDs)

NCDs or Non-Convertible Debentures are fixed-income instruments that are issued by companies to raise capital. Unlike convertible debentures, they cannot be converted into equity shares but offer attractive interest rates, often higher than traditional FDs. The two types of NCDs include Secured NCDs and Unsecured NCDs. Secured NCDs have lower risk as they are backed by assets, whereas Unsecured NCDs carry higher risk but offer better returns. They are ideal for investors looking for fixed returns over short term investment plans ranging from 1-5 years.

Equity Linked Savings Scheme (ELSS)

ELSS is a tax-saving investment option that invests primarily in equities. It has a lock-in period of 3 years, making it the shortest among tax-saving investments. ELSS funds offer high growth potential and tax benefits under Section 80C, where investors can claim deductions of up to ₹1.5 lakh. The returns are market-linked, and long term capital gains above ₹1 lakh are taxed at 10%.

Conclusion

Choosing the best investment plan with high returns depends on your risk appetite, financial goals, and investment horizon. While stocks and mutual funds offer high return opportunities, ULIPs, and company FDs provide a balance between safety and returns. Always research and diversify your investments to minimize risks and maximize growth.

FAQs on High Returns Investment