Safe Investments with High Returns in India

When it comes to financial planning, it becomes very important to look for options, which provides financial security along with the benefit of high returns in the long term.  Various investment options in India offers profitable return along with the benefit of a safe investment.  To choose the best investment options, it is very important to consider various aspects like risk appetite, liquidity needs, investment horizon and financial goals.

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Currently, the country is going through a rough patch, thus it has become important for people to make safe investment and invest in solutions, which provide guaranteed return.

5 Safe Investment Options with High Returns in India

Let’s read further to know more about safe and high return investments in India.

Capital Guarantee Plan

 A capital guarantee plans are ULIP plans that majorly focus to protect the investor’s principal from any losses during the economic crisis. A capital Guarantee plan is a combination of investment and insurance, wherein 50-60% of investment is made in debt and capital protection and the rest is invested in equity. The plan is offered for a policy tenure of 10 years and the premium paying tenure of the policy ranges up to a maximum of 5 years.

Capital Guaranteed Plan is a safe investment with high returns in India. The major advantage offered by this plan is that on the maturity of the policy the entire premium amount is paid back to the investor along with additional benefits ade by the product.  In order to minimize the probability of loss and provide a guaranteed return, capital guarantee funds aim to invest majorly in conservative instruments.

The maturity value of the capital Guarantee Plan depends on the market performance of the fund as well as returns from the traditional guarantee plan after completion of the policy tenure.

Public Provident Fund (PPF)

Public Provident Fund is a government back investment scheme that comes with a lock-in period of 15 years.  PPF is considered one of the best option for safe and high return investments in India. The PPF is a long-term investment scheme, which helps to create a retirement corpus while saving on annual taxes. The PPF offers a high-interest rate and the interest earned on the contributed amount and the returns are tax exempted under the Income Tax.

As the investment made towards PPF is not linked with the market, it offers a guaranteed return over the long term.   Moreover, on maturity, the individual can either redeem the entire accumulated sum or can extend the account over a period of 5 years.  With a minimum investment of Rs 500 and a maximum investment of up to Rs 1.5 lakh in a financial year, the Public Provident Fund ( PPF) is best suitable for individuals who wants to make safe investment along with the benefit of high returns.  

Bank Fixed Deposit

When we talk about safe investment with high returns in India, then Bank fixed Deposit is one of the most popular and preferred options of investment available in the market.  As compared to the regular savings account, the Bank FDs offers a higher rate of interest. Moreover, investment in 5 years of tax-saving FDs is covered under Section 80C of the Income Tax Act 1961. A higher rate of interest is offered for the senior citizen. The interest rate of the Bank FD varies across Bank, investment tenure, amount and residential status.

The Bank FD comes with a lock-in period. In case, an individual wants to withdraw from the FD scheme before completion of the lock-in period, then the bank deducts charges in form of interest accrued on the investment.  Bank FDs are a lucrative option of investment for investors who wants to avail of guaranteed return on investment and have a low-risk appetite. Some of the main  features of Bank Fixed Deposits are:

  • Offers assured returns over time.
  • Best suitable for investors who have a low-risk appetite.
  • Patrial withdrawal and loan against the balance are available.

National Pension Scheme (NPS)

National Pension Scheme is also a government-backed retirement scheme, that aims to secure the financial future of the individuals after retirement. The scheme is managed by the Pension Fund Regulatory and Development Authority of India (PFRDA).  In the NPS scheme, the contribution made by the subscribers is invested in the market-linked securities like equity and debt with an objective to gain profitable returns. The current interest rate applicable to the contribution made towards the NPS is 8-10%.

In NPS, an individual can make a minimum contribution of Rs.6000 in a financial year.  The contribution can be made as monthly instalments of a minimum of Rs 500 or as a lump sum.  Any Indian citizen between the age group of 18 years – 60 years can open a National Pension Scheme. The NPS matures at the age of 60 years, however, a person can extend it up to 70 years. As a safe investment option, the NPS scheme not only offers a higher return on investment over the long term but also acts as a remunerative option of tax savings. As safe and high return investment in India NPS also offers flexibility as the investors can choose their option of investment and pension fund.

Unit Linked Insurance Plan (ULIP)

ULIP is another safe investment with high returns option of investment available in the market. Unit Linked Insruance plan is an insurance cum investment product, which not only provides financial security to your family but also provides you with an opportunity to multiply your wealth in the long term. In the ULIP plan, a part of the premium amount is invested in market-linked securities like debt and equity fund to provide high returns on investment. On the other hand, the other part of premium is used by the insurer to provide life coverage to the family of the life assured and ensure financial security in case of any eventuality.  Thus the return is guaranteed in form of a maturity amount. Not only this; the ULIP plan also offers the advantage of tax exemption under Section 80C of the Income Tax Act.

Comparison of Top Safe and Return Investments in India


Return Potential


Suitable for

Capital Guarantee Plan




Public Provident Fund (PPF)



Risk-averse investors

Bank FDs



Risk-averse investors









Wrapping it Up!

In this time of uncertainties, everyone wants to create a secure financial future. However, to do so it is very important to have a proper understanding of your financial goals, risk appetite, investment tenure and liquidity needs. Also, by considering these safe investments with high return options to invest in India, you can create a strong financial cushion in the long term.


  • Q1. What are the best safe investments with high returns to invest in India?

    Ans-  There are plethora of investmemt options available in India to invest in. However, if you want to make safe investment along with the benefit of guaranteed return then you should consider investing in these options.

    • Capital Guarantee Plan 
    • Bank Fixed Deposits 
    • Public Porvident Fund 
    • ULIP
    • NPS
    • Recurring Deposits 
  • Q2. What are the benefits of making safe investment? 

    Ans-  Choosing safe investment options not only helps you to secure your fund, but it also provides an opportunity to create a financial cushion in the long term and gain a regular return on investment.  Moreover, some of these investment options also provides the advantage to save on taxes. 

  • Q3. Which investment option is better than FD? 

    Ans- capital Guarantee Solution Plan are better investment option as compared to Bank FDs as it not only provides the benefit of market return but it guarantees 100% return as on maturity of the policy, the entire premium amount is paid back to the insured along with additional benefits added to the policy. 

  • Q4. Which investment gives high return?

    Ans- Large cap mutual fund provides higher returns on investment. 

  • Q5. What are the safest tax saving  investment options available in India? 

    Ans- Some of the safest tax saving investment options to invest in India are:

    • Equity Linked Savings Scheme ( ELSS)
    • National Savings Certificate
    • Public Provident Fund (PPF) 
    • Sukanya Samriddhi Yojana (SSY)
    • Life Inssurance Plan
Written By: PolicyBazaar - Updated: 01 July 2021
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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