13 safe investments with high returns in India 2021

Last Updated on 1 month ago by Raj Kumar

13 safe investments with high returns in India

Most of the Indian middle class family and retired individuals are conservative in their investment approach. People prefer to have a moderate return but do not wish to take a lot of risk to get the returns. There is an astonishing amount money saved as fixed deposit in Indian banks earning meagre returns for the investors.

People often miss to realise that there are other good avenues to invest your money with not much

risk on the capital invested but has decent returns which are higher than fixed deposits most of the time.

In this article let’s look at 13 safe investments with high returns in India 2021.

safe investments with high returns in India
safe investments with high returns in India

List of 13 safe investments with high returns in India 2021

Here the list of 13 safe investments with high returns in India 2021

Investment TypeExpected returnsMeritsDemeritsTax exemptionRisk
Bank Fixed deposit5-6%Easy to investLow interest ratesNoLow risk
Public provident fund 
PPF
7.10%Good interest rate15 years lock inYesNo risk
Employee provident fund /
 EPF
8.50%Best interest rateOnly available for 
salaried employees
YesNo risk
RBI Floating Rate Savings 
Bonds
7.15%Good interest rateLock in for 7 yearsNoNo risk
Senior Citizens Savings 
Scheme
7.40%Good interest rateOnly available for 
senior citizen
YesNo risk
Pradhan Mantri Vaya 
Vandana Yojana
7.40%Good interest rate, 
payable monthly
Only available for 
senior citizen
NoLow risk
Post office schemes5.5%-6.7%Good interest rateLock in periodNoNo risk
Corporate Fixed Deposits 
and NCDs
6-9%Best interest rateVery riskyNoHigh risk
Tax-free bonds5-6%Interest earned is 
tax free
Low interest ratesNoNo risk
Debt Mutual Funds 6-9%Best interest rateRisky in some casesNoMedium risk
Kisan Vikas Patra6.9%Good interest rateLock in for 124 monthsNoNo risk
National savings certificate6.8%Good interest rateLock in for 5 yearsYesNo risk
Sukanya Samriddhi Yojana7.6%Best interest rateLock in period
only available for girl child
YesNo risk
safe investments with high returns in India 2021

Consider reading – Top 10 best investment options in India

As you can see from above there are numerous safe investment options available which gives excellent returns for the conservative investors.

Things to note – Although the investment options provide better interest rates than FD , you should be aware of the lock in period when you invest in these investment options. There is no point locking your money for a longer duration only to get marginally better returns.

If you haven’t considered debt mutual funds then you should have a look at investing debt mutual funds to diversify your investments. Debt mutual funds offer excellent returns if you understand the risks properly. There are various types of debt mutual funds available in the market. Consider reading – Are debt funds safe? which debt funds to invest?

FAQ on safe investments with high returns in India

Here are some FAQs on safe investments in India

What is the safest investment with the highest return?

Considering all the options available, PPF / EPF / VPF is an excellent choice for safe investment with high returns in India.

Which investment options give high returns with tax benefits?

PPF , EPF , VPF , Senior Citizens Savings Scheme , National savings certificate , Sukanya Samriddhi Yojna gives excellent returns with 80C tax benefits.

Are debt mutual funds safe to invest?

There is an increase in fear after Franklin templeton AMC had issues with their debt mutual funds in 2020. Retail investors started fearing to lose money in debt mutual funds.

In actual fact, there are many types of debt mutual funds available in the market and not every debt mutual fund is same. You should be evaluating debt mutual fund and risks to see if it suits your investment needs.

Are liquid funds better than FD?

In most of the cased liquid funds are better than FD as they offer slightly better returns than FD and they are very easy to purchase and sell. You don’t need to lock your money for a duration to get returns on your liquid fund returns as compared to FD.

Is debt mutual fund risk free?

No. Debt mutual funds are not risk free. There are some types of debt mutual funds which invest in risky debt instruments and they carry risk of losing the invested capital.

Which is the safest debt fund?

Liquid fund and overnight funds are considered as safest debt mutual funds as they invest in instruments which mature in immediate future thus provide security on investment.

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