Where to Invest Money For Good Returns In India?


Risk is directly proportional to return. If the risk is low, return will be low and vice versa. Now to get more returns, you have to invest in market linked investments rather than going for fixed income investments.

There are some options in which you can choose from to get higher returns:

Direct Equity:

Not everyone can afford to invest in equity as it is a volatile asset and there is no guarantee of returns. It is difficult to pick the right stock, timing of your entry and exit. But the fascinating thing is that over the time also, equity has been able to deliver higher returns than all other assets.

But, alongside, the risk of losing is also very high until or unless you chose to opt for stop-loss methods to compensate your losses.

Peer to Peer Lending (P2P) Platforms:

This is a new concept in India and started only 2-3 years back. You can say it is form of crowd funding where loans are raised from the people who want to lend by the group of people who need the money at certain interest rate for a fixed tenure. P2P Lending platforms connect borrowers with lenders in a seamless and hassle manner. Investor get an opportunity to earn high returns by lending money to qualified borrowers. Entire process is managed by P2P lending platforms. It is so easy that anyone can start lending without any hassle.  P2P Lending platforms are regulated by RBI and only those platforms who have received license from RBI can do this business in India. P2P Lending platforms are fast becoming a smart investment option for many millennial investors.

Even peer to peer lending is not devoid of risks as this kind of loan is an unsecured loan and borrowers may default to pay back the amount. However, prudent P2P Lending platform like i2iFunding has put in robust and new age credit evaluation process which ensures risk of default is reduced significantly.

Real Estate:

This kind of investment is basically investing in capital. This class of investment is highly illiquid.

Returns in real estate delivers returns in two different ways i.e. capital appreciation and rentals.

Bank Fixed Deposit:

FD is one of the safest options to invest in India. According to the rules of Deposit Insurance And Credit Guarantee Corporation (DICGC), every depositor in the bank will be insured up to a maximum amount of Rs 1 lakh. You may opt to get a cumulative interest for monthly, quarterly, half-yearly or yearly intervals.

Equity Mutual Funds:

It majorly consists of investing in equity stocks. As per the guidelines of Securities and Exchange Board of India (SEBI) mutual fund regulations, atleast 65 percent of its assets must be invested by equity mutual fund scheme. An equity fund can be managed actively or passively.

Public Provident Fund:

PPF has a long duration of 15 years; therefore the overall interest return becomes huge, especially in later years. Because sovereign guarantee backs up the interest and the principal invested, it is a safe investment.

Debt Mutual Funds:

Debt funds will get you steady returns. They comprise of very less risk factors as compared to equity funds. Debt mutual funds invest in fixed-interest generating securities.

National Pension Scheme:

The national pension scheme is a long term investment. It is retirement focused investment.

It is managed by Pension Fund Regulatory and Development Authority (PFRDA). It is a mixture of equity, fixed deposits, corporate bonds, liquid funds and government funds.

Investing In Gold:

One of the oldest investments done by Indians has been in the form of gold. Earlier it used to be in the form of jewelry or gold coins only but now the options have widened up in the form of gold deposit scheme, gold ETF, gold mutual funds, etc

Initial Public Offerings:

In IPO, they have two types of markets i.e. primary and secondary market. In primary market, company’s shares are initially made available to the public. Company’s shares cannot be listed on exchange without that. An offer made to the public i.e. public issue to subscribe to the share capital of the company at a certain specified price. Thereafter, the shares are allotted to the applicants as per the rules and regulations prescribed.

Once, the shares are listed, they become part of the secondary market. In secondary market, the investors can now buy or sell shares. The risk factor in this investment is that the prices of shares might double or they might even decline to more than half.


There are many other options for investment in India like equity-linked savings scheme, annuities, certificate of deposit, treasury inflation protected securities (TIPS) municipal bonds, etc. Not every investment is a safe investment. Some investments give you fixed income while others depend upon the market fluctuation. But both kinds of investments play their own role in the process of wealth creation. For the long run, you should make the best use of both the investments i.e. using both of them reasonably.