- Savings Bank Account
- Fixed Deposits
- Money Market Funds
- Public Provident Funds
- Post Office Savings Schemes
- Life Insurance
- Mutual Funds
There are multiple options for investment but the point which always trigger our mind is which investment plan is suitable for us.Best way to select best investment plan is to break our financial goals into 3 categories. Long Investment Plan, Medium Investment Plan and Short Investment Plan. It will help you to achieve the goal.
So here are some of the best investment for high returns options in 2024 based on three main categories. You can choose how you could start your investment journey.
- Short Investment Plan
- Medium Investment Plan
- Long Investment Plan
- Short Investment Plan: Investment that can easily be converted into cash, typically within 5 years. It generally known as Marketer Secuiter or Temporary Investment.
- Medium Investment Plan: Investment that have maturity period of 2 – 10 years are known as Medium Investment Plan.
- Long Investment Plan: Investment in which individual or company tend to hold for a period more than three years.
What is an Investment Plan & what are the options for best investment for high returns?
Financial tract, desighned to help you achieve growth by investing your money strategy. It starts with clear goals for example, saving for retirement, education funds. Detailed knowledge of best investment for high returns like stocks, bonds, mutual funds or real estate, might be right for you.
1. PPF:
Retirement Investment option is the best investment for high returns with less risk. It helping you sysytematically save for long term goals like retirement. Additionaly PPF offers tax benefits under the Income Tax Act 1961, and deduction under 80 C, makes it low risk investment plan.
- Minimum deposit Rs 500/- & Maximum deposit Rs 1,50,000/- in a financial years.
- Loan facility is available from 3rd financial year upto 6th financial year.
- Withdrawl is permissible every year from 7th financial year.
- Deposit qualifies for deduction under Sec 80-C OF INCOME TAX Act.
- Interest earned in the account is free from Income Tax under Section-10 of Income Tax Act.
- Available at almost all Indian banks and post offices.
- No restriction on the age limit to open an account. A minor account is handled by their guardian till the age of 18 years.
2. Post Office Monthly Income Scheme
Mostly these schemes is popular in domestic households, especially amount housewives and those individual who are earning passive in one and looking or want to invest in best investment for high returns.
- The Indian Postal Service offers single a/c, a guardian of a person of unsound mind.
- Minimum Rs 1000 investment is required to open an account and maximum balance of Rs 4.50 lakh and 9 lakh are permitted for single and joint accounts, respectively.
- A/c can be closed after 5 years from date of opening.
- Before one years of premature closure is not permitted.
- Nominees can file a claim if the depositor dies before the maturity period.
- Interest rate of 6.60% per annum payable monthly.
- Interest earner on the deposit is taxable.
3. Mutual Funds
A type of investment where multiple investors come together and pool their funds. Mutual Funds are messaged by sound financial professionals which is called called Funds Managers, who have expertise in analyzing and managing investments where and when to invest are some of the things taken care of by the fund managers. This is also the best investment for high returns.
3 Ways To Invest In Mutual Fund Schemes
- Mutual Fund Company’s Website.
- Mutual Fund Distributer.
- Through The ET Money.
Mutual Funds offer investors a reliable, time tested method of growing investment at a rate faster than traditional investment instructions. They have the potential to offer higher returns, capital growth and income generation.
4. Life Insurance
Contract between an insurance company and policy holders, in exchange for a premium, the insurance company agrees to pay a sum of money to one or more named beneficiaries upon the death of the policy holder is called Life Insurance.
There are two type of Life Insurance Policies:-
- Term Life Insurance
- Permanent Life Insurance
- Term Life Insurance: It gives you coverage for a set number of years. Your can select the Term Period such as 10, 20 or 30 years. If you die during the coverage period and have a covered claim your policy will pay benefits to your nominee. If your liuve past the selected period of time, the policy will simply expire.
- Permanent Life Insurance: Permanent Life Insurance policy does not expire and will cover you for your whole life.This policy does not expire and will cover you for your whole life. This Life Insurance policies remain active until you die, unless you stop paying your premiums or surrender the policies.
5. Money Market Fund
A Type of mutual fund that has relatively low risks compared to other mutual funds. This type of funds invest in high quality, short term debt securities and pay dividents that generally reflect short term interest rates. The returns from money market funds are typically higher than traditionl saving a/c, making them an attractive option for paying surplus funds temporaily.
Types of Money Market Funds are:-
- Treasury Bills (T-Bills): A short term government securities issued to raise funds and typically have maturities ranging from a few days to one year, offering a secure investment option.
- Commercial Papers (CPs):CPs are unsecured, short term debt instruments issued by corporation to meet their immediate funding needs, providing higher yields to investors.
- Certificate of Deposits: They are time deposits offered by banks & financial institutions with fixed terms and interest rates, making them a safe and predictable investment choice.
- Repurchase Agreements (Repos): It involve the sale of secuiters with an agreement to repurchase them at a specified future date, serving as a short term in financial market.
6. Fixed Deposits
A Type of investment provided by banks and other non-banking and house finance companies. Under this, investors would deposit a lump sum over a period of time, in turn, they would get a fixed rate of interest through out the investment. The rate of interest provided on FDs is much higher than that of a regular saving bank account.
- FDs ranges from one day to several years and it varies across banks.
- It compounded periodically, monthly, quarterly or annually.
- Senior citizen are provided with higher returns (0.5% higher).
- Loan against FDs are available.
- It save taxes under Section 80 C.
- Partial or fuel withdrawls are permitted (with penalty).
7. Saving A/C
An account at a bank that designed to hold and save our money. It typically pay a modest interest rate but it considered safe for parking cash that you want available for short term needs. Saving account offers flexibility that can be ideal for building an emergency fund, saving for a short term goal like buying a car or going on vacation with family or simply earning a little interest on your savings.