It is common for you as an investor to want to invest in a risk-free investment option. FD (Fixed deposits) are sought after as they provide steady returns and are relatively immune to market risks. Before you choose any investment scheme, first study what you intend to gain.

Factors That Determine The Success Of An Investment

  1. Income and Savings: Income is the amount an individual earns from their occupation over a time period. Income leads to savings and savings, in turn, determine how much money you can invest. The more your savings, the higher the returns you could receive.
  2. Tax Rules: The Government of India has drawn up certain tax regulations that are applicable to investments, income, services and more. While certain investments have stringent tax rules, others have relatively relaxed rules. Taxes can affect your returns, so it best to consider options once you know what kind of tax savings you need.
  3. Rates of Interest: This is the percentage of interest you receive periodically on the sum invested. Certain investments offer phenomenal rates of return and some offer lesser. Much depends on the amount invested and your risk appetite.
  4. Tenor: This is the time period over which the investment grows and matures. In some investment schemes, long tenors offer more value to your invested savings. However, there also equities like mutual funds that offer good returns over a short tenor.

These four primary factors determine the overall success of any investment. Once you have in-depth idea of your requirements and the features of each scheme, you can make a final decision and gain immensely from it.

10 Ideal Investment Options in India:

  1. National Savings Certificate: This savings scheme involves investing a minimum amount of at least Rs.100 in an account with a tenor of either 5 or 10 years. The deposit earns at interest of up to 8.5%.
  2. Money Market Funds: This can be described as investing in income securities of governments and corporates. They are a highly liquid form investment. These investment schemes offer interest rates from 5.5%-9%.
  3. Company Fixed Deposits: In this option, you can invest your savings in a financial institution over a tenor and gain from interest rates of about 8% and more. Your principal amount matures over the tenor on a fixed interest, with options to choose cumulative interest on maturity or non-cumulative interest pay-outs at chosen intervals. Choose a company FD based on safety ratings to keep your investment risk-free.
  4. National Pension System: This investment option was created by the government for retiring persons. It offers a tax benefit over the investment of up to Rs.50,000. The minimum investment amount is Rs.500.
  5. Mutual Funds: This is a pool of investments managed by a fund manager who invests in the equity and share market. Mutual funds offer periodical dividend payments. Choose a mutual fund based on past performance for best results.
  6. Atal Pension Yojana: This scheme is designed for people from lower income groups and offers tax benefits. Investors aged 60 and above can opt for a fixed pension from Rs.1000 to Rs.5000. This scheme provides a pension for the retired with other benefits at the cost of a monthly contribution.
  7. Senior Citizens Saving Schemes: This investment scheme is ideal for retiring senior citizens and offers its investors attractive interest rates of about 9.2%. The maximum limit of investing is Rs.15 lakh.
  8. Sukanya Samridhi Yojana: This investment option is exclusively for women. It involves investing a minimum sum of and receiving returns up to 9.1%. It was designed by the government so that parents could secure the future of their daughter over the long term.
  9. Investing in Gold: Gold is an alloy that has a high demand in India. With rising prices of gold, it is a great idea for you to consider investing in gold. Most investors purchase gold when prices are low and sell it when prices rise.
  10. Real Estate: With the rising population in India, the demand for homes has increased. This means that you could gain a lot by investing in real estate projects and giving a home for rent. However, it is important to invest in areas that have a high demand and with companies that are known to be trustworthy.

If you are looking for a high-interest rate FD, do consider Bajaj Finance. It’s highly rated Fixed Deposits are stable and safe, offer cumulative and non-cumulative interest pay-outs and a flexible tenor of your choosing. You can start at FD account with just Rs.25,000.

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