7 Safe Investments With High Returns in India

In recent years we see drastic changes in the financial field. Many people show their interest in investing and trading. So there lies a tremendous transformation in the investment sector. The mindset of people has changed to save for a better future.

This can be attained by good financial investments. The rise of new startups and IPO launches pave the way for more investing options. Let us see the 7 safe investments with high returns in India as follows.

Top 7 Safe Investments with High Returns in India

1. Equity Mutual Funds

Equity funds are a kind of mutual fund that invests in stock markets. This was handled by a team of professionals who invested their money in stocks of a different company portfolio so that the market risk is low and the returns seem to be high. The performance of the stocks depends only on market conditions.


  • Returns: These are concentrated on equities, for their high return rates. 
  • Tax benefits: Tax benefits are available in these types of mutual funds.
  • Risk: It involves high risk with its market fluctuations.
  • Expense Ratio: The expense ratio is also high because of its regular management.
  • Long term Investment: It can perform very well in the long term only. Long term investors who want to invest for higher returns can choose equity mutual funds.

2. Capital Guarantee Plan

A capital guarantee plan is considered a risk free investment that protects the Principal amount of the investor from any losses. These are considered as Capital protected funds which need more time for their maturity with stable returns. 

The amount of the investor is locked for some period of years and gives time for its maturity. After that, they receive stable returns along with maturity amounts without affecting economic fluctuations.


  • To tackle the high-risk factor, the investors managed it professionally like bonds. 
  • These are also considered illiquidity because it doesn’t give access to investors and is locked for several periods to do a better performance for higher returns.

3. Unit Linked Insurance Plan

A unit linked insurance plan is a dual product that blends both insurance and investment. The investors must pay the regular premium insurance whereas the part of payment goes to insurance coverage remaining is used for investments like equities or bonds. 

ULIP aims to build wealth for the long term and ensure partial withdrawal by a predetermined lock-in period with tax benefits.


The investment of one part of the premium payment in equities or bonds may be subject to market risk because of market conditions. 

4. Public Provident Fund

The Public provident fund is controlled by the Central Government and provides risk free investment for a long period. The tenure of this scheme is 15 years whereas the investor is allowed to withdraw money only after 5 years of maturity. 

An Investor can also claim a loan against investment from the beginning of 3rd year to the end of 6th year. However, the tenure is 36 months only and an individual is eligible to claim only 25% of the matured amount.

The interest rate is 7.1% and Indian residents are only eligible for this scheme. You can invest a minimum of Rs.500 to a maximum of Rs.1.5 lakhs. You can invest in a lump sum or monthly installments. 

5. National Pension Scheme

It is a retirement savings account with tax benefits and is easily accessible. It is also market linked and ensures market fluctuations with low risk high returns. It allows investment in equity, corporate bonds, government bonds, bills, shares, etc., to provide high returns with low risk. It can also provide a minimum amount to invest for a long investment period.

This also gives tax deductions over the withdrawal of your maturity amount and the lock-in period of your investment amount is 10 years. So that you can use your cash for your children’s education or any other purposes. 

6. Post Office Savings Scheme

It is purely undertaken by the Government and provides various saving schemes for an individual with guaranteed returns. It is a simple savings account that can also be transferred from one post office to another. 

It is considered as the savings cum investment process which is simple to use. The documentation and procedures are very simple and easy to do to make a customer friendly process.

ATM card, Cheque book, e-banking, and mobile banking.
Interest Rate4%
Minimum InvestmentRs.500
Maximum InvestmentNo limit
EligibilityAny Individual including minor
Tax ImplicationsInterest up to Rs.10,000 will be exempted
Account TypeSingle or Joint ownership
Services ProvideATM card, Cheque book, e-banking, and mobile banking 

7. Select High-dividend Stocks

A dividend is a part of the company’s profit which is paid to people who own its shares. The people who own the shares of the company are called shareholders. A healthy mature company is only able to share its profits as dividends to the shareholders. It is a reward paid to the investors for their investment in the company. 

The dividend yield is considered as the dividend per share and expressed as a percentage of share price. Stocks that have high dividend yield when compared to the benchmark are called high yield dividend stocks. It is considered as a good investment because of two reasons as follows:

  • A high dividend yield depicts that the share price is available for a lower price than the competitor in the market.
  • The dividend which companies pay can act as a passive source of income.

Check out our article for the Best Monthly Income Plan.


Investment in the financial market is increasing day by day. In this fast movement, investors give top priority to safe investments with high returns in India. 

By understanding the basic foundations from Equity Mutual Funds, Capital Guarantee Plans, Unit Linked Insurance Plans, Public Provident Funds, National Pension Schemes, and Post Office Savings Schemes to High-dividend Stocks, an individual can get the ability to manage risk and rewards. These investments may pave the way for a successful financial life.