Which Investment Options Have the Best Returns?


Long past are the times when earning a lot and saving most of it was deemed a sound way of achieving financial security. The modern-day Indian wants time to relax and enjoy life while still ensuring a financially stable future.

The rapid rise in the number of people, both young and old, choosing to invest their money in various investment options over the last few years is a clear indicator of people’s changed mindset and their willingness to try new things to maximize their capital’s value. But not all investment options are alike or suited to everybody. You should analyze your priorities, the risk factors and, of course the returns before deciding on a plan to put your money into.

Investing in Public Provident Fund

Investing in public provident fund remains one of the most straightforward and secure, investment options, also one of the most profitable ways of making a long-term investment. Simply open a PPF account with the nearest post office or your preferred bank and start earning good interest for your deposit. The lock in period for your deposit in 15 years and you are allowed to further extend it by 5 years if you so desire.

Note that you cannot withdraw your PPF deposit until the end of the sixth year. On the brighter side, the returns from a PPF account are quite good, with the interest rates expected to either go up or remain stable in the times to come. Also, the interest you earn from your PPF deposit in exempt from taxes.

Investing in Mutual Funds

Mutual funds offer a unique balance of risk and reward for people keen on investing their money in bonds and equities. Long-term investment in mutual funds using systematic investment options can be a highly rewarding venture. Mutual finds work beautifully for people who aren’t interested in taking a big risk and want to make small, regular investments. Investing in mutual funds gives you a diverse investment portfolio and the returns are one of the best in the market.

Investing Directly in Shares or Equity

Perhaps the most rewarding investment plan for people looking for long term options, direct purchase of shares or equity virtually guarantees excellent returns if you keep invested for long durations, say 15 years or more. Investors, however, must make sure they’ve completely analyzed the share stock before proceeding with putting their money on it.

Investing in Gold

Gold has always been one of the most dependable and profitable investments in the world. It’s rarity and real world value make it the most sought precious metal in the world and with Indians being the biggest gold lovers in the world, it’s an automatic choice for everybody looking for big returns on their investment. There are several ways you can invest in gold—buy gold ETF or mutual funds, purchase a gold deposit scheme or simply purchase gold bars from a reputable jewelry store. It’s an excellent investment plan for people who aren’t interested in keeping their wealth tied up for a long stretch of time.

Investing in Company Fixed Deposits

Company Fixed Deposits or Company FDs are one of the most popular and rewarding investment options of the day. The interest rates are higher than those in case of bank fixed deposits. There is a degree of risk involved as corporate fixed deposits aren’t under the RBI’s control. There are no insurance benefits involved and investors can not withdraw their money until maturity. It’s advisable you keep that in mind and pick a suitable investment period. A wonderful, high returns opportunity for people willing to invest for a long term.

Investing in Bonds

Investing in bonds is a relatively secure and profitable option for investors who aren’t too keen on putting money in direct equity and mutual funds. Returns on bond investments is independent of the company’s performance so the investors are looking at fixed returns during the investment term. The returns from investing in bonds is higher than other low risk investment plans like fixed deposits.

While the average returns in case of a fixed deposit range from 6-7 percent, the average returns for bonds are about 6.5-8 percent. Bonds, both government and corporate are a wonderful option for those looking for a risk free investment plan. Bonds with higher ratings are the most secure while people looking for higher returns can opt to go with lower rated bonds that, while they carry a degree of risk, offer better gains.


One of the most common mistakes people make with their investments is failing to keep track of the them. While this happens more in case of long duration investments, people with short term investment plans too, often fail to meet the desired goals simply by forgetting about their investment. Sounds unbelievable, but it’s a fact nonetheless. Make sure you monitor the value and status of your investments at regular intervals, taking stock of where they stand and the direction they’re headed. Remember, a little care and attention can be the difference between good and great returns!

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