Where to invest money for good returns in India? High Return Investments

Short Answer

We all look to earn good returns on the money we invest. Putting money in High return investments is one way of generating better income. The different places to get good returns are mutual funds, equity, and gold investment in India.

Detailed Answer

The necessary and basic requirement for every investment made is good returns. Every investor wants to earn higher returns with minimal risk. Does such a kind of high return investment scheme actually exist? There is an inverse relation between return and risk. And, everyone is striving to find the optimum balance between both.

India being a diverse country, provides a variety of options to invest and earn better income.

Selection of Investment plans may depend on various factors like:

  1. Risk
  1. Market conditions
  1. Tenure of investment: Short term or Long term
  1. Goal of such investment
  1. Inflation

Hence, there are many factors to influence your investment decisions. But, here I;ll discuss the top investment opportunities to earn higher returns in India.

High Return Investments India:

1. Gold:

Gold is one of the oldest investing schemes available in India. Since ancient times gold was used as investment instrument. This has always proven to be a great investment pool in regards to returns.

An individual can invest under gold in following ways:

• Gold Bar

• Gold Ornaments and Jewellery

• Gold mutual funds

• Gold market schemes (GOLD ETF)

2. Equity:

Equity is high risk investment scheme which is mainly dependent on current market situation. After correct analysis of historical company data and current market conditions and individual can invest under this scheme. The return on equity is highly volatile.

To invest under this scheme, an individual must have a demat account.

There is one more opportunity linked with Equity market i.e. Initial Public offering (IPO)

IPO is when a company asks for capital from public for the first time. These seem to be opportunities wherein an individual can earn good returns. Of course, you can't ignore the higher risk factor here.

3. Mutual Funds:

A mutual fund is a pool of different securities such as stocks, bonds, and debentures. The combined holdings of the mutual fund are known as its portfolio. The mutual fund portfolio is built in to mitigate risk and at the same to time to enhance returns on investment.

If the investments are made to recognized mutual fund scheme, the same can be claimed as tax exemption benefit under Income Tax Act (Section 80C up to Rs.1.5 Lac).

There are below few options to choose while planning for Mutual funds:

1. Equity Mutual Funds:

Under this scheme of mutual fund, at least 65% of the amount is invested in equity market (as directed by Securities and Exchange board of India (SEBI)). There is high risk attached to the scheme but on a general basis 5 years market return are on average 12-13%.

2. Debt Mutual Funds:

Under this scheme of mutual fund the amount is invested in debt fund market i.e. fixed interest generating securities like government bonds, treasury bills, etc. These are low risk scheme. This scheme is popular among investors who are seeking steady returns.

On an average the return to this scheme ranges from 5-7%.

3. Balanced Mutual Funds:

Under this scheme of investment, there are equal parts of investment made in equity and debt markets. These schemes are low return and low risk schemes.

This was my compilation of effective ways to to invest money for good returns in India. Do you have any other high return investment ideas? Go ahead, and share your opinions.

Tagged With: high return investmentsgood returninvest moneygood investments india
Categories: Investment
Ask your query and our expert community would be happy to help
Discussion (1)

    The investments should be primarily based on one's financial objectives. If you look for long term investments options: 1. PPF or Public Provident Fund 2. Mutual funds 3. ELSS 4. Equity (the most riskier asset class) For Short term investment options: 1. Liquid funds 2. Short term FDs There are different Government schemes also that can offer decent returns especially to investors who are not willing to take any risk. Mutual funds and equity suit the investors who can take up risks. So, a safe investor might find PPF and FD returns also good. While a risk averse investor goes beyond fixed return generating instruments. What do you say?

Related FAQs

What is a good Rate of Return on investments (ROI)?

A good return on investment is where a person makes considerable profits form their investments after a long period. However, the profits can vary form one person to another.

Are market highs good to invest in Equity mutual funds?

Understanding the relative position of the market, the absolute values do not matter much. What matters is what is the earnings multiple, currently the market is trading at, popularly captured by a metric called P/E ( Price to earnings).

What are things to keep in mind before investing in high P/E Stocks?

There are various aspects about high P/E ratio that an investor needs to be mindful of before investing in any stock:

  • Company's background, goals, objectives, and performance
  • Clear mindset before investing
  • reasons for increment in P/E ratio
  • Volatility of the value.

IPOs seem the modern money multiplying investment, Should you invest?

Good quality IPOs are great options for investors when considering investing in an IPO. However, IPOs should not be taken as money multiplier instruments and invested in. Multiple IPOs have performed badly due to extremely high valuations and poor financials. Hence, it is important to evaluate the financials of the company before investing in them.

Which is better investing in equity, mutual funds, or keeping money in banks?

Equity and mutual funds are perfect if you want to invest in companies while seeing your money grow in a short period. Moreover, the chances of compounding your investments are higher. But the risk associated is equally greater considering the growth of companies and their performance in offering returns. But then keeping money in the bank is the safest way to keep your earnings. But then, due to inflation and low returns on interest, that value of the money kept might be cut down drastically.

What is the best way to get 15% p.a. return on investment?

There are multiple avenues through which a 15% p.a. return on investment can be made. These are through equity, mutual funds, fixed deposits, government bonds, and schemes, etc.

Is NRI money taxable in India?

NRI money is taxable in India under certain circumstances usually when the income is earned in India. There are also many deductions and exemptions available. For further details read the long form with description.

Is Paytm Money Safe and reliable Broker for Stock Trading & Investing?

Yes, it is completely safe to invest your money in the stock market using Paytm money App. In fact, PayTm has come up with stock broking services recently and trying to establish itself in the said field. And, to give tough fight to top existing players it has to keep its services up to the mark. Paytm Money made a big name in mutual fund investment industry and now it's time to see its performance in the stock brokers' world.

How much money do I need to start Stock Trading in India?

Its all based on the share you wish to purchase. You can invest one rupee or two rupees in the stock market while there is no maximum cap on your investment.

How much money can you gift tax free to a family member tax free in India?

There is no limitations on the amount of money that can be gift tax free to a family member in India. But, it is essential to check rules and regulations for whom does the clauses apply and whether all kinds of gifts are allowed or not.