Where and How to Invest Money for High Returns at Low Risks in 2020?

It is vital to know how to invest money for the most beneficial returns. Following is a list of investment schemes to invest money for higher returns.


An increasing number of Indians are seeking financial stability for their future by investing their disposable income into different investment plans. Since investment schemes promise higher interest returns post maturity than conventional savings accounts, such financial products are just as popular as credit-based products like loans and credit cards. Considering the huge number of such options now available for individuals as well as better accessibility, it is vital to know how to invest money in these schemes for the most beneficial returns.

Following is a list of investment schemes to invest money for higher returns.

Top investment avenues in India for 2020 –

Financial institutions have gathered attention from investors looking for financial security through low-risk investments. The related benefits are far-reaching and address several financial issues. However, some investment plans offer more advantages than others as they are suited to the specific needs of the customer.

  1. Fixed deposits

One of the most prevalent investment schemes in India, fixed deposits are a traditional and secure source of return on investments. Individuals mostly invest in fixed deposit schemes because they assure higher rates of interest than savings accounts while being low-risk.

With a fixed deposit, an individual deposits a specific one-time sum for a fixed tenor, between 12 to 60 months on which the financial institution offers compounding interest rates.

Financial companies like Bajaj Finance offer higher FD interest rates for senior citizens of up to 8.35%, among other features and benefits.

Customers looking to gain a total lump sum at the end of the tenor opt for a cumulative FD. On the other hand, customers who want a periodic interest payment of the funds deposited can consider a non-cumulative FD, although at a lower rate of interest. Know how and where to invest for higher returns on fixed deposits to benefit the most.

  1. Public Provident Funds (PPF)

Public Provident Funds (PPF) are an effective scheme for individuals wondering how to invest money to build a sufficient retirement corpus. PPFs are best suited for individuals who focus their investments on long term goals with funds at their disposal.

PPF is a highly secure investment scheme that guarantees tax benefits to the investors on the principal amount and the yearly compounded interest of 7.9% under Section 80C of the Income Tax Act, 1961.

PPF is accessible for a large range of investors because it provides the option of an annual deposit ranging from Rs.500 to Rs.1.5 lakh. With a minimum lock-in period of 7 years, the maturity period is 15 years, and an individual can further extend the investment period for another 5 years.

  1. National Savings Certificate (NSC)

National Savings Certificate is a low-risk initiative undertaken by the Government of India to encourage fixed income investment into saving schemes. Customers can choose from maturity periods of either 5 or 10 years. The current rate of interest on such investment shifts between 8.5% and 8.8%, which is revised half-yearly.

The interest that accrues over the tenor is eligible for tax benefits under Section 80C. Regional post offices issue the certificates to the investors. In case the investor is looking for a loan, the NSC can be pledged as security for easier loan disbursement.

  1. Senior Citizen Savings Scheme (SCSS)

This scheme is primarily sought after by retired senior citizens who require financial safety. This investment plan metes out a quarterly flow of income to retired employees at the current rate of interest of 8.7%. The tenor is usually 5 years, which is extendable to 8 years.

This is a popularly availed investment scheme for senior citizens and helps them formulate effective post-retirement options.

  1. Equity-Linked Savings Scheme (ELSS)

Customers pondering on how to invest money in systematic fractions often settle for ELSS offered by various financial institutions. The funds are invested via a Systematic Investment Plan (SIP) for a fixed tenor.

These schemes fetch a higher rate of interest because of their exposure to market-related risks. However, the funds are highly liquid and customers can withdraw as per their will. Tax benefits under Section 80C applies to ELSS.

One of the most popular ELSS is a debt fund, both short-term and long-term. Debt funds typically offer an interest ranging between 12% and 15%.

Consider all these investment options. Understand which is the best savings scheme in India as per various risk profiles and your financial goals. Invest only after proper deliberation and financial planning.

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