Top Investments with Guaranteed Returns in India

Patience and discipline will always lead you to get better results and investment is not an exception to that. Financial discipline will help you achieve your life goals – whether it is about getting higher returns on the invested money for building your retirement corpus, or creating an emergency fund. All you need to do is align your investment horizon as per your life goals.

Before starting to look for the top investment plans with guaranteed returns, categorise your life goals into:

a) Long-term Goals
b) Medium-term Goals
c) Short-term Goals

Choose an investment plan as per your financial goals and consider the risk involved in the plan.

Investment Options for Long-term Goals

Having time-bound goals help you grow your wealth successfully over time with returns that are guaranteed. Listed below are a few top investment options for getting guaranteed returns:

a) Unit Linked Insurance Plans (ULIPs)

Unit Linked Insurance Plans or ULIPs are life insurance plans that offer a life cover and a long-term avenue for wealth creation with market-linked returns. A portion of the premium paid for ULIP is paid towards insurance and other portion goes toward the funds that you choose to invest in. The return on investment in a ULIP depends on the performance of the funds.

Learn how to maximize your gains from a ULIP.

c) National Pension System (NPS)

This is one of the top investment options for guaranteed returns. NPS is a government backed retirement scheme that was launched to help people to have a secured retirement. For Tier-I accounts, the minimum contribution is Rs. 500-Rs.1000 and for Tier- II accounts, the minimum contribution is Rs. 250.

Read more about NPS

d) Public Provident Fund (PPF)

It is one of the popular investment options that offer guaranteed returns with fund protection. The returns that you get in a PPF are fully exempted from tax. The minimum investment you can make is Rs. 500 and the maximum is Rs. 1,50,000 in a fiscal year. Currently, the interest rate offered on a PPF account is 8%.

Investment Options for Medium-term Goals

Typically, medium-term goals are those that are hardly three to five years away, for example, renovating your house, getting married, etc., For such goals, find investment plans that are flexible and can beat inflation.

Listed below are a few top investment options for fulfilling medium-term goals:

a) National Savings Certificate (NSC)

National Savings Certificate is another popular tax saving instrument with guaranteed returns. The returns on new issues are revised at the beginning of every financial year. Investment in NSC qualifies for 80C deduction, but the interest accumulated in the account becomes taxable at maturity. The tax rate applicable is as per your income tax slab.
So, the returns are not as guaranteed as it says. But this is a perfect scheme for you to grow your money safely, as once you invest your rate of interest is fixed.

b) Post Office Monthly Income Scheme (POMIS)

Post Office Monthly Income Scheme is one of the top investment options with guaranteed returns to help you achieve medium-term goals. You can earn up to 6.60% annual interest every month of the investment that you make. And the lock-in period for this investment option is 5 years.

Learn more about Post Office Monthly Income Scheme

c) Senior Citizen Savings Scheme (SCSS)

SCSS is a government-backed retirement plan, which can be opened at a bank or a post office across the nation. The returns in this investment option are guaranteed and interest is paid out to the account holders on a quarterly basis.

Know more about Senior Citizen Savings Scheme

Investment Options for Short-term Goals

Investment options for short-term goals may have a higher degree of risk involved given the time of investment. Choose an investment option for your short-term goals wisely after analysing your risk appetite.

Listed below are a few top investment options for short-term goals:

a) Fixed Deposits or Recurring Deposits

Fixed deposits have been the oldest guaranteed investment options in India. You can opt for various maturities with fixed and recurring deposits. The only difference between a bank fixed deposit and post office deposit will be the TDS deduction. While bank FDs need to deduct 10% TDS every year on the interest, the post office does not.

Learn more about Fixed Deposits

b) Equity Linked Savings Scheme (ELSS)

These are tax-free funds with a lock-in period of 3 years. Depending on the returns that you get from ELSS, you can decide to sell the funds or redeem them for your use.

Investing your wealth to boost it so that your financial goals are taken care of is essential. However, as the saying goes, “Do not put all your eggs in one basket”. So, if you are looking for top investment options for putting your money in, it is better to consider different investment options and plan your finances accordingly.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.

---