There are plenty of investment ideas in the market. Brokers push different stocks, agents sell different mutual funds but you need to assess the right asset class for your risk appetite and better returns. The simplest question every tax filing season is- “Where to invest money to achieve maximum tax breaks?”. This can be easy if you are aware of the different sections applicable to you and the investment options under them. 

Similarly, it is always better to invest apart from tax requirements to multiply your wealth. There are a number of investment ideas for better returns that can suit all risk appetites. 

  1. Equity – Direct equity is a popular investment option. People should look at blue-chip companies – part of the Sensex or the NIFTY 50 to invest in good growth stocks. 
  2. Mutual Funds – These are medium to high-risk category investments which might seem difficult to wait for but choosing the right scheme can earn you good returns. The best thing to do is go for debt mutual funds which have more than 60% investments in certificate of deposits, commercial paper, and bonds. Also, hybrid or balanced schemes pay well in a market where stocks are low but interest rates are high. 
  3. Small Saving Schemes – The Government of India has introduced various schemes which accept schemes in the form of small savings or amounts and give a fixed interest rate. These rates are revised quarterly by a government panel which determined the rates depending on their earnings and economy inflation. The most popular schemes are as follows –
  • Sukanya Samriddhi YojanaSukanya Samriddhi Yojana(SSY) is an investment specifically for the girl child to help create a corpus for education and marriage till the age of 21 years. It is a voluntary scheme earning a rate of 8.4% from the earlier 8.5%. 
  • National Savings Certificate – This is like an FD with the post office earning the same 7.9%.
  • Senior Citizen Saving Scheme– This is again meant for retirees above the age of 60 years where they can keep getting a monthly fixed sum by investing in a lump sum. The corpus earns 8.6% instead of the earlier 8.7%. 
  1. Public Provident Fund – This is like a superannuation or retirement fund which is developed to inculcate a habit to save for retirement. It has a lock-in of 15 years, with a compulsion to invest some amount year financial year. The minimum investment required is Rs. 500. It gives you only one chance to make a partial withdrawal after 7 years of investing. The rates recently got revised from 8% to 7.9% in June 2019.
  2. Company Fixed Deposits –With interest rate cuts, investors now need to look out for safer investment avenues. You can look at similar safe instruments such as company fixed deposits. They pay 1-2% higher than bank FDs. These are not directly linked to the Reserve Bank of India rates and have proven to be the best bet for investors. It is important to go for the safest credit rating of company FDs like Bajaj Finance FD. Company FDs are fixed deposits by NBFCs which are rated by credit rating agencies like CRISIL and ICRA. Bajaj Finance is the only NBFC with BBB rating by S&P Global.

REPO rate cut and subsequent falling FD interest rates are lessening your returns from the above-mentioned investments but Bajaj Finance FD is still offering high interest rate of up to 8.95% for senior citizens. This is one of the best investments to give 51% returns on investment and above as the table shows – 

Investor TypeInterest ratesAmountTenorReturnROI
New customer8.6%Rs. 25,0005 yearsRs. 12,76551%
Senior citizens8.95%Rs. 25,0005 yearsRs. 13,37754%
Existing customers8.85%Rs. 25,0005 yearsRs. 13,20253%

Not only this, but you can also take advantage of new features such as multi-deposit where you can create multiple FDs through a single payment. Another feature is auto-renewal which lets you earn 0.10% additional interest rate upon renewal.

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