Best Low-Risk Investments with High Returns in India 2022

Everyone of us wants to earn higher returns and not to lose our hard-earned money. In other words, we all look for safe investment options that offer high returns. While risk and returns are highly correlated, informed investors make smart investment plans that generate guaranteed returns. Considering this we have compiled a list of safe investments with high returns in India for NRIs and residents. 

Best Low-Risk Investments with High Returns in India
Safe investments with high returns in India

Safe investments with high returns in India

Following are some of the best investment plans with high returns in India:

Bank FD

Bank fixed deposits are one of the safest investments with high returns in India. Both residents and non-residents can invest in fixed deposits to save their earnings and get higher returns. Interest rates on fixed deposits (3.50% to 7% p.a.) are much higher than that on regular savings accounts (2.50% to 5% p.a.). Moreover, interest earned on NRE FDs is not taxable in India. 

Bank FDs are an attractive option of investment to get guaranteed on investment with almost no risk of losing money. Key features of bank FDs are as under:

  • Safest investment option with assured returns over time
  • Most suitable for investors who have a low-risk profile
  • Loan against balance is available

Public Provident Fund

Public Provident Fund is a government-supported investment scheme and offers guaranteed returns. The scheme comes with a lock-in period of 15 years and is a safe investment with high returns. Interest earned on the contributed amount and the returns is not taxed in India. Resident Indians can easily contribute to the fund, but can NRI open a PPF account? 

PPF rules for NRIs

  • NRI can’t open a PPF account in India.
  • However, if you opened a PPF account before becoming an NRI, you can continue to hold the account till maturity i.e. 15 years. 
  • On maturity, the NRI has to close the PPF account and can’t extend the same. 
  • If an NRI continues to contribute to the fund without notifying their bank of their status, no interest will be payable on contribution after maturity.  

National Pension Scheme (NPS)

NPS is a government-backed retirement fund that aims to provide financial security to individuals after retirement. Managed by PFRDA or Pension Fund Regulatory and Development Authority, it is also a safe investment with high returns. Not only residents but NRIs can also invest in NPS.

Indian citizens between 18 years and 60 years can open a National Pension Scheme. The minimum contribution of Rs. 6000 is acceptable in a financial year. You can pay the contribution as monthly installments of a minimum of Rs. 500 or as lump sum. The contribution made by subscribers is invested in the market-linked securities, such as equity and debt. The current rate of interest applicable on contributions made in NPS ranges from 8-10% p.a.

Unit Linked Insurance Plan

ULIP is an insurance cum investment scheme that provides financial security and investment opportunities to multiply wealth in the long term. One part of the contribution is directed towards market-linked securities like debt and equity funds for high returns on investment and the other part is used to provide life coverage to the family of the investor. Hence, the return is guaranteed in the form of maturity amount. 

Just like residents, NRIs can also invest in ULIP plans in India, provided they follow the regulations of FEMA (Foreign Exchange Management Act).  

Equity Linked Savings Scheme ELSS

Equity Linked Savings Schemes (ELSS) are considered as one of the most preferred investment options of tax deduction for NRIs and resident investors. You can claim up to maximum deduction of Rs. 1.5 lakh in a year u/s 80C of IT Act. ELSS are equity-oriented mutual funds and invest majorly in equity and equity-linked securities such as shares. Hence, the risks are similar to those associated with investing in stocks.

Like fixed deposits and Public Provident Funds, ELSS don’t offer assured returns. So, these funds are not most suitable for investors with a low-risk profile.  

How safe investment plans compare

Listed below are the safest investment options with high returns in India. Residents as well as NRIs can explore these investment options to make their wealth grow. 

SchemesReturn Per AnnumRisk
Bank FDsUp to 7%Nil
ULIP12% – 14%Medium
Public Provident Fund7.10% Nil
ELSS15% to 18%Medium
Safe investments with high returns in India

For a secure financial future, it is natural to look for a safe investment that offers high returns. However, before selecting an investment plan it is important to assess your risk tolerance, investment tenure, financial needs, and liquidity requirements. NRI investor should also konw about regulations they need to follow to invest in India.
To ask any question related to investment in India, NRIs can schedule a call by clicking the button below or download SBNRI App from the Google Play Store or App Store. You can also use the SBNRI app for investment in stock market/ mutual funds, NPS, Fixed Deposit, Pre-IPO, Asset Finance, Commercial Real Estate, Indian Startups Funds, NRI account opening, etc. To ask any questions, click on the button below. Also, visit our blog and YouTube channel for more details.

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