The Smartest Investment with the Highest Returns: Options for the Best Investment Plan in India 

Personal Finance

Nothing can beat a smart investment strategy. And investing your hard-earned money to enjoy a higher return is pretty sensible indeed. However, you must make the best investments that ensure a stable return without much risk. 

Now, the question is where to invest. For starters, there are tons of investment options wherein you can apply and reap the benefits in the form of returns. But, deciding and picking one option is rather daunting.

This is why we are here to help you! Let’s discuss some of the most lucrative options for the best investment plan. Keep scrolling to know the options.

Top Choices for the Best Investment Plans in India

Long-term Plans

Take a look at the long-term investment opportunities ranging between 7 to 10 years.

Direct equity

It is a no-brainer that more risk fetches you higher returns. A direct equity market is a risky option, but the extent of returns it can give is amazing. Investing in direct equities is one of the most popular investments people pursue.

In this, the prices of some stocks may go up steadily and even fall at once. So, it is essential to think and invest in the shares of reputed organizations. Though, 100% accurate prediction is impossible.

In that case, you must have the heart to bear losses if you want to enjoy the returns of equity investments.  


Gold is the safest asset to invest in nowadays. It is a good option even during times of financial crisis. A common symbol of wealth, this yellow metal can give great returns to its investors. 

If you buy gold physically in its metal form, you need to bear the expenditure of making charges. So, you have the option to buy this asset through exchange-traded funds or mutual funds nowadays.

Gold is an investment worth considering since it doesn’t allow inflation to affect it drastically. 

Small Saving Schemes

Small saving schemes can take you a long way in terms of financial strength and stability. Public Provident Fund, Kisan Vikas Patra, and the Senior Citizens Savings Scheme are some of the best options for a safe yet smart investment.

Though the returns may not be as high as options like equity, it bears zero risk.

PPF and NPS (National Pension Scheme) are two plans that focus on aiding you financially post-retirement. Also, ULIPs are a mix of investment and life insurance. In this, you can also invest some part of your premium in assets. 

Medium-term Plans

Below, we have listed the investment avenues to cater to your financial goals. They are about 3 to 5 years long.

National Savings Certificates 

The post office National Savings Certificates (NSC) are safe investments focusing on financial goals of about 3-5 years. They work just like regular fixed deposits in banks. The key difference is that the amount is payable only at the end of the entire period, which is termed maturity. 

NSCs are promising investments since the Indian government backs them. The rate of interest you can expect is 6.8% per annum. So, if you are ready to block your funds for as long as 5 years, NSC is for you. 

Post Office Time Deposits 

Products offered by the post office are considered to be safe and trustworthy. This is because the Government of India supports them.

These time deposits are just like bank fixed deposits. Many invest here because they usually offer better interest rates than banks. 

Furthermore, there is almost no risk involved in investing in post office time deposits. You can lock your money for short periods. Also, you can even let it grow over a longer time. 

Medium-Term Debt Funds

There is a huge list of options when it comes to debt funds. Each type carries different leverages, like returns and the plan’s tenure. Therefore, you need to research and decide on the best investment plan in case of debt funds that matches your needs. 

We give you three categories between excessive and zero risk for a medium-term plan. They are the Short Duration Fund, Banking & PSU Fund, and the Corporate Bond Fund.

Banking & PSU funds lend to public sector companies and banks. On the other hand, Corporate Bond Funds deal in shares of private companies.

Short-term Plans

The following choices serve the immediate financial needs you must fulfil within a year.

Bank Fixed Deposits

Fixed deposits are the most common and safest investments, period! In this, you deposit a certain sum of money and lock it into an FD account for a specified period. By the end of the tenure, you get to enjoy the principal amount and accumulated interest over the years. 

However, it has the disadvantage of blocking your funds for that lock-in time. You must bear a penalty if you need to withdraw your money before maturity. Also, the post-tax fixed deposit returns cannot beat inflation.  

Short-Term Debt Funds 

As we’ve mentioned earlier, debt funds are available in different types—each of the three caters to a certain need. Short-term debt funds are meant to support your immediate financial needs. In this case, the three options that suit well are Liquid Funds, Money Market Funds, and Ultra-Short Duration Funds. 

One advantage of these investments is the low risk they carry. Additionally, you don’t need to block your money for much longer, like in the case of fixed deposits. Money Market Funds focus on investing in highly-liquid instruments. Ultra-Short Funds allow you the option to invest for as less as 3 to 6 months. 

To Wrap It Up

If you were clueless about the best investment plan in India, we are sure you got that out of the way. Remember that the right investment can take you way ahead financially and allow you to reap its benefits to the fullest. Don’t forget to check out Piramal finance for more detailed and in-depth insights on every kind of financial service and product, from personal loans to investments in stocks.