Safe Investments Options in India with best returns
What is the meaning of Safe investment returns?
In Safe investment, your money (capital amount or also called as principal amount)
remains safe with no or little risk and provide returns. There are lots of investment
options but in this section we will see only safe investment options.

Generally safe investment bears low risk or no risks at all but the rate of returns are
low and usually guaranteed.

Before start looking for safe investment you need to ask below 3 questions and
follow according to achieve your investment goal :-

1. Investment period - How many months or years you want to invest your money.
2. Returns expected - Are you looking for low returns, moderate or high returns.
3. Risk - What level of risk are you willing to take? Low, moderate or high risk.
Case 1 -
If you are younger then you can plan for high risk = high returns = longer duration investment.

This formula works excellent with very small amount. If you are planning at your early age then plan to invest small amount in strong fundamental stocks or else you can prefer large cap mutual funds. Generally, people who don’t know about stock market they invest a very small amount every month in Mutual funds.
Case 2
If you are middle aged then you can plan to take moderate risk = moderate returns = few years of investment

This is also called as balanced investment. In this case, Investors puts some money into stocks or balance mutual funds. In balanced mutual funds some money is invested in stocks and some into debt funds.

OR some investor invests some money into balanced mutual funds and some into fixed deposit or other safe investment option as mentioned below.

Such types of investor are conservative and take moderate risk for moderate risk trying to keep their money safe.
Some best balanced mutual funds and their returns (this is old data)
Case 3 -
Safe Investment, irrespective of your age, if you don’t want any risk and want your money safe then you can plan for this option but in this case usually the returns are low.

Below are few options in Safe investment returns category.
Bank failures are rare in India so bank fixed deposits are a very safe way to invest your money. The rate of returns are known before investment so no uncertainty here. Taxes can eat into your returns though, especially if you are in the high tax bracket, but even then a FD that compounds quarterly and is done for a long maturity will yield well.
Like the bank fixed deposit, this is also a very safe and certain investment. The disadvantage is that money is locked in for at least 5 years, and the positive is that you get some tax benefit.
This is also a very safe investment, and the returns are impressive, especially for someone in the 30% tax bracket. If you donít mind the 15 year investment then no other fixed income investment can match the PPF return for the safety it offers.
This is another safe investment with decent returns. Visit think link for more info
This option provides somewhat higher returns than normal schemes due to age factor. Please visit at below links for more info

This is useful if you are looking for an instrument that gives you a monthly income. Below are few options:-

These bonds arenít as safe as a bank deposit or a post office deposit but they can still be categorized as fairly safe investment. If you buy these bonds from the stock market right now, they are trading at higher than their face value so your effective yield will be less but then there is always a chance to make capital gains if interest rates come down. Talk to your broker or write to us for more clarification.
Although these are fixed income instruments, there is absolutely no guarantee or indication of what the returns will be like. To that extent, they are very different from the other instruments. Even then, they are specially attractive to people in the higher tax bracket due to their eventual FD like returns and tax advantage. Below are few options :-

These are like FMPs in the sense that the returns are not fixed, so they are not for those who want to know rate of return before investment. Their popularity stems from the fact that they are flexible to buy and sell and have given decent returns in the past. Below are few options

These are at higher risk compared with the Bank fixed deposit. The higher risk means their returns are also higher but you need to be careful while buying them. Some Top corporate fixed deposits are:-

A reasonable place to keep your short term funds, but if you have a lot of money in a savings account then you need to consider a FD or some other instrument that can yield higher.
Bank Fixed Deposits Few days to several years 8% or above
Tax Saver Bank Fixed Deposits Above 3 years 8.5% or above
Public Provident Fund 15 years This varies between 8 to 9%
NSC (National Saving certificate) 10 years This varies between 8 to 9%
Senior Citizens Savings Scheme Minimum 1 year 9 to 10%
Monthly Income Scheme from 1 to 5 years 8 to 9%
Tax Free Bonds You can buy or sell any time. Above 8%
Fixed Maturity Plans (FMP) 1 year or more Not fixed but usually comparable to fixed deposits
Debt mutual funds Varying maturities and can be bought and sold anytime. Varies
Corporate Fixed deposit Varies from company to company but it is for fixed duration Higher than fixed deposits.
Savings Account Based on banks, they provide quarterly or semiannually interest returns 4 - 6%
For more clarification you can read below topics :-
Please Note - Returns calculated based on this page are while writing this article on 31 Aug 2015
If you are investing for minimum 10 years in stocks or in Mutual funds then it has high risk in this plan is subsided, because share market or mutual funds have provided excellent returns over longer duration. 

The longer an investor stays in the market, the lesser is the risk of losing money and market volatility affecting a person.

Some of the older funds, launched before 2000 reflect this. HDFC Top 200, (since 1996), has annualised returns of 21.32 per cent. Similarly, Franklin India Bluechip Fund, (since 1993), has 22.40 per cent annual returns and Reliance Growth Fund (since 1995) has returned 24.52 per cent.
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The following table shows the returns from various safe investments. (this is old data)