Top 10 Best Investment Options in India


A financial plan for your future is essential to everyone’s life. But what is a better way of planning than laying a good investment?


Investing ensures present and future financial security. Through Investing, you will be able to expand your wealth and create inflation-beating returns.


Most importantly, you can benefit from the compounding of your investments and hence get higher returns.


If you have trouble identifying the best investment options, do not worry. This article will direct you to the various investment options you can find in India.


FD Rates October 2023


What Are The Best Investment Options Available In India


To begin with, India has plenty of assets where you can invest your money. But there are obvious ones that do perform better than others. The best investment options that are available include:


  • Fixed Deposits (FD)


Fixed Deposits is an investment that allows you to earn a predetermined amount of interest after a specified period.


Fixed deposits are considered the safest and most stable forms of investments. It is also an excellent investment to:


  • Get high returns from your fixed deposit account
  • Compound your fixed deposit account every year to get returns.
  • Guarantee you a fixed amount of returns after the set period.
  • Ensure you will not get anything less than what you kept in the initial investment.
  • No market fluctuation effect
  • Guaranteed returns


Guaranteed returns make fixed deposits the best investments you can make today. You can easily calculate your returns and determine what you get by adjusting your investment period.


  • Mutual Funds


It is a trust that accumulates funds from several participants with a shared investment purpose and invests them in stocks, bonds, money market instruments, and/or other assets. And the income/profits earned from this collective investment are allocated proportionally to the participants, after subtracting appropriate expenses and taxes, by determining a scheme’s “Net Asset Value


  • Professional fund managers select which securities (stocks, bonds, etc.) to purchase and when to sell them.
  • You are exposed to all of the fund’s investments and any revenue they earn.
  • They provide a variety of investment types and ideas.


Based on asset class, mutual funds are classified as follows: 


  • Equity Funds


Since equity funds invest largely in equities, they are also known as stock funds. They invest the money gathered from a variety of individuals with varied backgrounds in the shares/stocks of various firms. The profits and losses connected with these funds are totally dependent on the performance of the invested shares (price increases or decreases) on the stock market. Additionally, equity funds have the potential to create substantial returns over time. Consequently, the risk associated with these funds tends to be relatively greater.


  • Debt Funds


Debt funds generally invest in fixed-income instruments including bonds, securities, and Treasury bills. Among others, they invest in Fixed Maturity Plans (FMPs), Gilt Funds, Liquid Funds, Short-Term Plans, Long-Term Bonds, and Monthly Income Plans. Since the investments come with a set interest rate and maturity date, they might be an excellent choice for passive investors seeking minimum risk and consistent income (interest and capital appreciation).


  • Hybrid Funds


As the name implies, hybrid funds consist of the optimal combination of bonds and equities, spanning the gap between equity funds and debt funds. The proportion may be variable or constant. In brief, it combines the best aspects of two mutual funds by allocating, say, 60 per cent of assets to stocks and the remainder to bonds, or vice versa.


  • Solution-oriented Mutual Funds


These  solution oriented mutual funds meant to produce wealth for certain long-term purposes, such as retirement or the education of children.


  • Other Funds


This category includes index funds, which invest based on specific stock indices, and fund of funds, which monitors the whole mutual fund sector, picks the best investment schemes after doing a thorough research and invests your money there.


  • Direct Equity


Investing in stocks is one of the finest strategies to generate wealth for long-term goals. There are several examples of equities that have increased the wealth of investors throughout time.


While investing in stocks has the potential to significantly increase your wealth over the long term, there are also considerable risks involved.


You are able to invest directly in company stocks. But the true difficulty is in locating the correct stocks. Given that there are more than 5,000 stocks listed on Indian stock exchanges, selecting the best stocks is undoubtedly difficult.


  • Post Office Savings Schemes


Post Office Savings Account – It works like any other bank’s savings account and can be transferred from one post office to another.


National Savings Recurring Deposit Account – The Scheme assists small/poor investors in building a corpus for future requirements. An adult or two adults working together establish an account.


National Savings Time Deposit Account – The investment in the 5-year post office time deposit is tax deductible. The investment is deductible under Section 80C of the Income Tax Act of 1961.


National Savings Monthly Income Account – This is a system in which investors contribute a certain amount and get a monthly fixed interest.


Senior Citizen Savings Scheme Account – The Scheme is a savings vehicle available to Indian people over the age of 60. The deposit expires after 5 years from the date of account opening, but the investor can extend it once for an additional 3 years.


Public Provident Fund Account – The Government of India has proclaimed a long-term investment scheme known as the Public Provident Fund. It is a secure post office deposit plan that provides tax breaks and attractive interest rates that are determined each fiscal year.


National Savings Certificate (NSC) – A National Savings Certificate (NSC) is a fixed income investment scheme that can be opened at a post office. It is a savings bond offered by the Government of India that enables subscribers, typically small or middle-income individuals, to invest while saving income tax.


Sukanya Samriddhi Yojna – SSY is a savings plan introduced by the Government of India to help the female child’s financial situation. The concept allows parents to save money for their female child’s future education and marriage expenditures while also providing a favourable return on investment.


Kisan Vikas Patra Account –  Kisan Vikas Patra is a certificate scheme administered by the post office. It is a modest savings plan with a set interest rate meant to double your money after a defined time period.


  • National Pension Scheme (NPS)


National Pension Scheme is an investment meant to benefit you in your retirement. The government backs NPS, which is governed by the Pension Fund Regulatory and Development Authority (PFRDA).


The NPS enables you to have a substantial retirement corpus at your disposal. As a salaried or self-employed investor, you can use the NPS retirement account.


NPS accounts are classified into two types.

  • Tier-I (Retirement Account)
  • Tier-II


The main difference between NPS and other provident fund investments is that NPS allows you to aggressively increase your corpus. NPS uses an auto-rebalancing strategy to manage a portfolio with decreasing risk as you age.


The return on your NPS investment will be determined by the portfolio mix you select as well as the length of time you stay involved.


The NPS system is extremely valuable to anyone working in the private sector who needs a regular pension after retirement. The plan is movable between employment and places, and it provides tax benefits under Sections 80C and 80CCD.


  • ULIP (Unit Linked Insurance Plan)


Ulips are products that combine a life insurance policy with an investment opportunity through a mutual fund in a single plan. Because Ulips are offered by life insurers, your payments to these businesses when you purchase a Ulip plan are referred to as “premiums,” as Ulips are more akin to insurance plans.


A percentage of your premium is redirected to the investing element, which is the mutual fund portion: equities, debt, hybrid, or as the case may be. There are fund managers who care about your investments. You are also permitted to move between several forms of money to construct the greatest ulip strategy for yourself.


Ulips investments can be utilised to claim a tax deduction under section 80C of the Income Tax Act up to Rs 1.5 lakh. Aside from that, the policy’s returns are tax-free at maturity under Section 10 (10D) of the Income Tax Act.


A Unit Linked Insurance Plan has a five-year lock-in term. However, because Ulip is a hybrid of a life insurance policy and a mutual fund, both of which are long-term investments, it should be kept for at least 15 years.


  • Public Provident Fund (PPF)


PPF is one of the most common and secure investments for long-term objectives. Originally conceived as a secure retirement investment plan for self-employed individuals, the plan has become popular among long-term investors because:


  • Investments in ULIPs are eligible for a deduction of up to Rs. 1.5 lakhs under section 80C. Additionally, the value at maturity is exempt from taxation.
  • In the first five years of the account, you can draw from the accumulated balance. After five years, partial departures are permissible
  • Low-risk investment with a market-linked interest rate that is revised annually.
  • Investment Period Minimum of 15 years, after which the account can be extended in 5-year intervals.


  • Real Estate Investment


Real estate investing is another viable alternative. Purchasing things such as buildings and land is referred to as real estate investing. This is one of the most effective investment strategies for combating inflation.


Investing in real estate may provide you with both regular and capital gain income.


You can rent out the building you just bought. This will guarantee you monthly returns. If your property has risen in value, you can sell it at a higher price and receive a capital gain.


There is a well-known saying that there are three crucial factors in real estate: ‘location, location, and location’. This is the most important component in determining the success of any real estate venture.


Having real estate in a desirable location may be expensive, but it could net you a higher rent and has a better possibility of appreciation.


  • RBI Bonds


RBI Bonds are one of the most secure investment alternatives available. The Reserve Bank of India, or RBI, offers public bonds to collect funds for the development of different government projects. These bonds are known by a special phrase. After maturity, the principal amount is refunded, together with the interest earned.


RBI bonds can be purchased via any of the 12 national chains, as well as four private banks. The RBI will provide you with a certificate of holding to recognise your debt. This certificate will serve as proof of adulthood.


  • These are for a period of seven years.
  • These might be cumulative (interest is reinvested) or non-cumulative (interest is paid as a monthly income).
  • The interest rate on the Government of India Floating Rate Bond 2033 (GOI FRB 2033) for the half-year period from September 22, 2022, to March 21, 2023, will be 7.42 per cent per year.


  • Gold


In India, gold is frequently viewed as a prudent investment for safeguarding a family’s heritage. However, rising expenses and increased fees have diminished their appeal.


Currently, Gold ETFs are gaining popularity. These are often referred to as “paper gold.” Gold ETFs comprise gold assets and stocks. In contrast to pricey gold, they can be purchased on the stock market according to one’s means.


As this is an ETF, or Exchange Traded Fund, it is passively managed. It is a reflection of Gold’s performance. The greater the performance of gold, the greater the performance of ETFs.


  • Since they are traded on stock exchanges, they are volatile and carry greater risk. 
  • They are liquid, so you may enter and leave positions according to your preferences.
  • Before committing to a purchase, conduct thorough research on the stocks.


  • Senior Citizens’ Saving Scheme (SCSS)


The Senior Citizen Saving Scheme, or SCSS, is an investment option for persons who are or have retired. It is a government-backed investment option in which you can deposit a lump sum and get a regular income stream once you retire.


There are two ways to open an SCSS account.


– Through the post office

– Through a bank


Because of its assured and high returns, SCSS is a popular investment choice for senior citizens. The current return rate is 7.4%. These rates are subject to quarterly adjustment.


Here are some SCSS characteristics to be aware of:


  • If you are over the age of 60, you can invest in SCSS. People over the age of 55 who have already taken VRS may also apply (Voluntary Retirement Scheme).
  • The minimum investment is Rs 1000, which means you must deposit at least Rs 1000.
  • The maximum amount that can be invested is Rs 15 lakh. You are not permitted to invest more than this amount.
  • In SCSS, interest is paid quarterly.
  • The maturity period is 5 years, which can be extended by up to 3 years.




It is an additional government-backed investment option for senior citizens, i.e., those aged 60 and above. This is an excellent investing strategy if you desire a steady income stream.


The Pradhan Mantri Vaya Vandana Yojana, like SCSS, provides an annual interest rate of 7.4%, but it has a longer maturity period. The specified rate pertains to the programme that is accessible through March 31, 2023.


Here are some PMVVY features:


  • Pension paid on a monthly, quarterly, or annual basis
  • It has a 10-year maturity date.
  • The least monthly investment is Rs 1,000, and the highest monthly investment is Rs 9,250.
  • You may use it as collateral for loans of up to 75% of its value if you have owned the property for at least three years.




Your financial future depends heavily on the choices you make now. Therefore, making the correct investment decision today will prevent financial ruin.


Investors seeking a secure investing strategy should always seek those with the least amount of risk.


On the other side, investments with the highest long-term returns typically carry the most risk. In such investments, losses accrue rapidly.


If an investor makes a direct investment in the stock market, they must do so after conducting extensive study and acquiring relevant expertise.



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