Should I invest in gold or real estate?

Gold is easier to buy and sell quickly, while real estate can give you better long-term returns but needs more money upfront.

What is a good option if I want to invest for the long term?

Unit Linked Insurance Plans (ULIP), Child Plans, Public Provident Fund (PPF), Equity Mutual Funds, and the National Pension Scheme (NPS) are the best investment options for long-term.

How do I start investing in stocks in India?

You will need to open a Demat and trading account with a broker, do some research on companies, and start buying shares through your account.

Which investments help save on taxes?

Unit Linked Insurance Plans (ULIP), Child Plans, Guaranteed Return Plans, Equity-Linked Savings Scheme (ELSS), Public Provident Fund (PPF), and the National Pension Scheme (NPS) are the best investment options that can help you save on taxes.

What is a good investment option for beginners?

Capital Guarantee Plans, Index Funds, Recurring Deposits (RDs), and Fixed Deposits (FDs) are easy to start and are low-risk investment options.

How to Get 10% Return on Investment in India: Best Options & Strategies 2025

10 Percent Return on Investment in India

A 10% Return on Investment (ROI) is a popular goal for many investors in India in 2025. Getting this kind of return is realistic if you plan smartly and stay invested for the long term. In today's market, mutual funds, stocks, REITs, and SIPs are some of the best ways to aim for 10% returns while managing risk wisely.

Where Can You Get 10% Returns in India (2025)?

The following table covers the best investment options to aim for 10% returns in India for 2025, while balancing risk and return levels:

Investment Option

Expected Returns (Approx.)

Risk Level

Key Features

Suitable For

Equity Mutual Funds

20-30% (some top funds)

Medium to High

Market-linked, diversified stocks, professional management

Investors with high risk appetite and long-term horizon

Small/ Mid-Cap Equity Funds

25-35%+

High

Higher growth potential but volatile

Aggressive investors targeting higher returns

Corporate Bonds

8-12%

Low to Medium

Fixed income, better than the government. bonds, monthly/quarterly payouts

Conservative investors seeking steady income

National Savings Certificate (NSC)

7.7% p.a. compounded annually

Low

Government-backed, 5-year lock-in, safe and tax-saving

Risk-averse investors wanting guaranteed returns

Public Provident Fund (PPF)

7.1% p.a. compounded

Low

Govt. backed, tax benefits, long lock-in (15 years)

Long-term savers seeking safe, tax-efficient returns

Fixed Deposits (FDs)

6.6% to 8.15%

Low

Bank/institution backed, fixed tenure, guaranteed returns

Very conservative investors

Debt Mutual Funds

8-10.5%

Low to Medium

Invests in corporate/government debt instruments, some risk

Investors wanting better returns than FDs with moderate risk

Hybrid Mutual Funds

15-22% (top aggressive funds)

Medium

Balanced mix of equity and debt for growth with risk cushioning

Moderate risk investors wanting balanced portfolio

Key Things to Keep in Mind

Risk vs. Reward: Investments that offer higher returns usually carry higher risks. It is important not to put all your money into one stock or fund. Instead, spread your investments across different options to reduce risk and balance your returns.

Time Horizon: Earning a steady 10% ROI usually requires patience and a medium to long-term investment approach. SIP plans and the power of compounding work best when you stay invested for several years, allowing your money to grow gradually and safely.

ROI Calculators: Use online ROI calculators to easily compare different investment options and see which one gives you the best returns.

Consider Taxes, Fees, and Inflation: Always include taxes, fees, and inflation in your calculations, as they can lower your actual profits over time.

Track Fast-Growing Sectors: Keep an eye on sectors like technology, energy, and healthcare, as they are growing quickly and often offer better investment opportunities.

How Inflation Affects Your 10% ROI?

You can learn how inflation affects your 10% ROI from various investments in India in 2025 from the following table:

Investment Option

Typical Nominal ROI

Inflation Impact

Real ROI (Approx.)

Key Inflation Effect Explanation

Equity Mutual Funds

20-30%

Moderate impact, equities often outpace inflation in long term

14-25%

Companies can raise prices, protecting profits and returns; inflation erodes only a part of nominal gains

Small/Mid-Cap Funds

25-35%+

Moderate, higher volatility

19-30%+

Higher growth potential but riskier; able to beat inflation if held long term

Corporate Bonds

8-12%

Negative impact if inflation rises rapidly

2-7%

Inflation causes RBI rate hikes, reducing bond prices and fixed-income value

NSC

7.7% fixed

Mostly negative, inflation close to or above rate

Around 0-2%

Guaranteed return plan but inflation reduces real value of fixed interest

PPF

7.1% fixed

Mostly negative, inflation close to or above rate

Around -1% to 2%

Long lock-in helps compounding, but inflation limits real growth

Fixed Deposits (FDs)

6.6%-8.15%

Negative if inflation higher than FD rate

Near 0% or negative

Inflation erodes fixed nominal returns making real returns close to zero or negative

Debt Mutual Funds

8-10.5%

Negative impact, prices fall with rate hikes

2-6%

Interest rate rises hurt bond prices; returns may dip below inflation during high inflation phases

Hybrid Mutual Funds

15-22%

Moderate impact

9-17%

Balanced portfolio cushions inflation impact with equity upside

Summary

Inflation reduces the real return (purchasing power adjusted) by approximately the inflation rate (about 3-7% range in 2025).

Fixed income instruments like NSC, PPF, FDs, and corporate bonds face the greatest erosion due to fixed nominal interest.

Equities and hybrid funds generally provide better inflation protection as companies can increase prices.

Small and mid-cap funds, though riskier, often outperform inflation significantly over the long term.

Conclusion

In 2025, getting a 10% return on investment in India is possible if you plan smartly and stay patient. The Indian economy is growing strongly, and inflation is quite low, which creates a good environment for investors. By choosing the right mix of investments, keeping costs and taxes low, and staying invested for the long term, you can increase your chances of achieving that 10% return goal.

FAQs

Should I invest in gold or real estate?

Gold is easier to buy and sell quickly, while real estate can give you better long-term returns but needs more money upfront.
What is a good option if I want to invest for the long term?

Unit Linked Insurance Plans (ULIP), Child Plans, Public Provident Fund (PPF), Equity Mutual Funds, and the National Pension Scheme (NPS) are the best investment options for long-term.
How do I start investing in stocks in India?

You will need to open a Demat and trading account with a broker, do some research on companies, and start buying shares through your account.
Which investments help save on taxes?

Unit Linked Insurance Plans (ULIP), Child Plans, Guaranteed Return Plans, Equity-Linked Savings Scheme (ELSS), Public Provident Fund (PPF), and the National Pension Scheme (NPS) are the best investment options that can help you save on taxes.
What is a good investment option for beginners?

Capital Guarantee Plans, Index Funds, Recurring Deposits (RDs), and Fixed Deposits (FDs) are easy to start and are low-risk investment options.