Best High Return Investment Options in India
These days, everyone is looking for high return investment options in India. While there are several investment plans, one can choose high return investment options based on tenure, risk appetite and liquidity and taxation point of view. Which are the top high return investment options in India? How you can choose a good investment plan for you which can fetch you high returns in India. In this article, I would help to analyze some of the best high return investment options to invest in India.
I don’t just say invest in stocks or mutual funds. Here one should look at several parameters before considering it as a high return investment option.
1) Depends on Tenure: Investment option can vary from a person to person who want to invest for 1 year or 10 years.
2) Depends in risk appetite: A high risk person can invest in stocks, but a low risk investor cannot. Hence, one should check whether it fits his or her risk appetite. High return investment option of investing in Stocks may not always fit for everyone.
3) Liquidity: If you are investing your emergency money or short term investment, liquidity should be high priority. Hence, investment in NCD’s may not be best high return investment option if you are looking for quick liquidity.
4) Taxation: Investment in bank FD Vs investment in tax saving FD schemes would depend whether you are looking for taxation point of view.
1) Mid-cap and Small-cap mutual funds
One of the best high return investment is investing in Midcap and small cap mutual funds. Midcap and small cap mutual funds invests in midsized or small sized companies which have potential to grow money in short to medium term. Some of my favorite mutual funds in this segment are Franklin India smaller companies fund, DSP BR Micro fund, HDFC Midcap Opps fund, Mirae Emerging blue chip fund etc., You can refer more
Who can invest: Investors who can invest medium to long term of 5 to 10 years can consider this as one of the best investment options to get high returns.
2) Company Fixed Deposit Schemes
There are several company FD schemes where you can get a yield of as high as 12% per annum. You can look for high return company FD schemes and invest in them. Here are some of the top company FD schemes.
- The Bajaj finance FD scheme offers interest rates of 8.7% to 8.9% per annum. Annualised yield works out to be 10.63%
- DHFL Aashray Deposit Plus FD scheme offers interest rates of 8.5% to 8.75% per annum. Annualised yield works out to be 10.4%
- The LIC HFL FD scheme offers interest rates of 8.25% to 8.5% per annum. Annualised yield works out to be 10%
Who can invest: Company FD schemes carry high risk. Investors who are willing to take high risk and want to invest money for short to medium term of 1 to 5 years can invest in these high return company FD schemes.
3) Investment in Stocks
Investment in direct stocks would give high returns. An investor can invest in stocks that fits with warren buffet principles and expected to give superior returns in India.
Who can invest: High risk investor willing to invest in a medium to long term tenure of 5 to 10 years can look Stock investment as a high return investment option.
4) Non Convertible Debentures (NCD)
Non Convertible debentures are issued by companies for medium to long term funding requirement. These are generally secured and unsecured NCD’s. Secured NCD’s are backed up with assets like receivables, etc., hence carry low risk. DHFL Secured NCD’s got oversubscribed twice in Aug and Sep-16 on day-1. This shows investor interest in NCD’s. If you have missed to subscribe them you can buy them from the secondary market (like any other stock), however they might be available at some premium. Keep checking our blog for latest NCD issues so that you can subscribe to get them high return from these NCD’s.