Most financial news outlets generally cover market movements and the reasons behind it. People usually find the highs and lows of the stock indices much more appealing as the common perception is that stock markets can help you make quick money.
However, most experienced investors will look out for safe investments with high returns in India. Even NRIs flock to invest in India owing to the high growth rate and interest rates offered in the economy as compared to other developed countries.
Alternatives to High-Risk Options
So if you are on the lookout for best safe and low-risk investment options in India, consider the fixed deposits offered by NBFCs like Bajaj Finance. Fixed deposits have been one of the most underrated saving instruments but if used strategically can help you multiply your wealth to meet your financial goals with strong stability.
Look out for the following safe investments with high returns in India for 2020 –
- Debt Mutual Funds – Debt Mutual Funds are those which invest more than 60% of the fund in debt instruments. The state of the economy is giving a direction where interest rates might fall. When interest rates fall, debt instruments tend to go up in value. Thus, debt mutual funds can be expected to perform well. This is called as Interest Rate Risk for debt funds.
- Small Saving Schemes – Government regulated small saving schemes such as Public Provident Fund, National Savings Certificate, Senior Citizen Saving Schemes and Post office schemes which offer anywhere from 6.5% to 8%. They are revised as per the popular sentiment and interest rate scenarios. You can lock in a portion of the corpus in these.
- SDP Plans – This plan is a boon for new jobbers looking to start investing in a disciplined manner. It’s a new feature of Bajaj Finance FD wherein you can invest with a minimum of Rs. 5,000 per month in a series of FDs. Each monthly deposit can be considered like an FD in itself.
SDP allows you to choose a tenor ranging from 12 to 60 months. You can also choose the number of deposits you wish to make. You can make 6 to 48 deposits during the tenor. Thus, even if you are falling short of cash in any month, you can skip the deposit as you won’t be levied any penalty charges.
Bank FDs currently offer 6-7.75% for the longest of tenors whereas you can easily earn up to 8.10% with a Bajaj Finance FD for 5 years. You can get an additional interest rate benefit of 0.10% if you are an existing customer or Bajaj Group employee. Also, if you are a senior citizen, you can get an additional 0.25%.
You can utilise the SDP calculator which gives an exact estimate of the maturity amount you can expect with a specific number of deposits for various tenor options. Choose the category of customer you fall into and then see the final maturity amount. This will help you plan multiple deposits as per the timing of your future financial needs.
You are not exposed to any market fluctuations and are assured of the highest stability ratings of FAAA/Stable by CRISIL and MAAA/Stable by ICRA. This means that this is the safest investment option with a high level of returns.