People often look for different ways through which they can create more wealth and strengthen their financial structure. One way to do so is by indulging in investments. There are many different kinds and types of investments which help in creating a monetary foundation by yielding high returns.
Here are 8 investments options with high returns:
- Fixed deposits or FD: Fixed deposits are one of the more popular choices for investment for those who wish to create a wealth pool and build a financial foundation. Depending on which bank one approached for a fixed deposit, one can have a cumulative or non-cumulative option. Investments regarding fixed deposits can be done both online and also by going to the nearest bank branch. Fixed deposits offer higher interest rates in comparison to normal savings bank accounts which make it an easy and simple choice for investment with high prospects of returns.
- Public provident fund: Having the benefits of annual compounding and also tax saving advantages, public provident funds or PFF’s are one of the go-to investment options of the public. Having a relatively long tenure of 15 years, PFFs have a huge compounded impact and offer high returns to those who successfully take up this fund scheme.
- Senior citizens saving scheme: This scheme is a risk-free investment option especially for those who are 60 years of age and above. This particular scheme is a tax saving investment option that allows people of the mentioned age group secure a source of regular income after retirement. Having an interest rate as high as 8.6%, the senior citizen saving scheme or SCSS is a highly attractive investment option with high returns.
- National pension system: The national pension system or the NPS is a system established by the government to provide pension-related solutions to the employees of government sector jobs. Depending on the will and wish of the investor, this fund invests in government securities, equity bonds and also in alternative investment options. This system offers interest which is tax-free and is a great investment avenue which yields high returns especially for those looking for monetary security after retirement.
- ELSS: ELSS or equity-linked savings scheme is another one of the many investment options that a person may scout with high returns. These are a type of open-ended equity mutual funds which not only help in saving up on tax but also provide an opportunity to grow money reserves. Investment in ELSS schemes is an option sought out by many investors owing to its high returns.
- United linked insurance plan: United linked insurance plans, or ULIPS are a type of investment option that allows investors to have the benefits of insurance and investment at the same time under an integrated plan. This is a great option for new investors who have just been introduced in the investment market and want to minimize their loss while at the same time want to have high returns.
- Real estate: Real estate is another way through which people can invest and gain high returns. If one happens to own property which is not being used by them for residential purposes, then he or she can use that property and give it out for rent or a business firm and earn revenue from that.
Mutual funds: Mutual funds are one of the most common investment option and tool which is taken up by investors. Mutual funds are basically professionally managed investment funds that pool and accumulate finances from multiple investors in order to purchase securities.