Top Investment Options to Obtain High Returns for 2021

You should consider investments as a vital aspect that can ensure a comfortable financial future for your family. It helps fulfil your financial goals and enable a steady financial future.

Instead of keeping your savings in your bank account, you can put it in different investment avenues like fixed deposits, PPF, equities, mutual funds, and many more. Most investors make investments that offer high returns on invested money. People thus are always seeking for the top investment plans that can help them multiply their wealth.

Match Investments to Risk & Return Profile

Some investment come with high-risk but generates higher returns than other investment options. There are some other investments that carry low-risk and provide you low returns. The investment options you choose must match with your risk & return profile.

If you are able to take more risk you can invest with high-risk investment options and afterwards, you will able to generate high returns. If you are a risk-averse investor, you need to pick investments that come with low-risk and you will get low returns.

In addition to risk factor, you must also consider other aspects such as your investment goals, risk appetite, investment horizon and liquidity needs.

Tabular Version of Top Investment Options in India

Investment Options

Tenure of Investment (minimum)

Who can Invest

Risk Involved




An investor who can balance the risk and return



Mutual Funds

As per the tenure chosen

An investor who can take medium to high risk

Medium to high risk


Unit Linked Insurance Plan

Minimum lock-in period of 5 years

Who is seeking wealth creation and life cover


As per investor’s profile

National Pension System

60 years

An investor looking for retirement planning

Low to high

Market-linked returns

Public Provident Fund

15 years

Who can invest for long- term and seeking to fulfil financial goals

Zero risk

7.1% per annum

Sukanya Samriddhi Yojana

21 years

Investing to secure girl child’s future


7.6% per annum

Bank fixed deposit

7 days

Who don’t want to take investment risk


Fixed returns, depending on the bank

Senior Citizens’ Saving Scheme

5 years

For senior citizens aged above 60 years


7.4% per annum

Pradhan Mantri Vaya Vandana Yojana

10 years

For senior citizens aged above 60 years


7.4% per annum


As per investor

Anyone looking for high returns


Prevailing rate of gold

Top 10 Investments to Fulfil your Financial Goals

The top investment options in India for 2021:

  • Equity
  • Mutual Funds
  • Unit Linked Insurance Plan
  • National Pension Scheme
  • Public Provident Fund
  • Sukanya Samriddhi Yojana
  • Bank Fixed Deposit
  • Senior Citizens’ Savings Scheme
  • Pradhan Mantri Vaya Vandana Yojana (PMVVY)
  • Gold

To help you pick the right investment options, we have listed down some of the best investment options that you should consider investing to obtain high returns in 2021.


Investing in stocks is extremely volatile and returns are also not guaranteed. It also carries the risk of losing your capital investment. Moreover, it is quite difficult choosing the right stock, timing the entry and exit for your equity investment is also not easy. However, when you invest for the long term, equity investment is able to deliver higher returns than other asset classes. It is a high risk & high return investment product.

Mutual Funds

If you seek investing in stocks but don’t have much expertise, you can choose to invest in Mutual Funds that tends to generate high returns on your invested amount. Investing in mutual funds are market-related investments and your money is invested in several financial instruments like equity, debt, money market instruments etc.

When it comes to mutual funds, you can invest in three different types of mutual funds- Equity Funds, Debt and Hybrid Funds.

  • Equity mutual funds

Equity mutual funds invest at least 60% of your money in equity shares. Under this, the money is usually invested into the stocks of companies with different market capitalizations. In equity funds, the risk involved is higher and the returns it offers are also higher.

  • Debt mutual funds

Debt mutual funds invest your capital amount in instruments such as government securities, treasury bills, corporate bonds, and other money market instruments, which offers you the fixed-interest with low risk to your investment.

  • Hybrid Mutual Funds

Hybrid Mutual Funds invest in debt and equity asset classes. Each hybrid fund comes with a different combination of equity and debt for different types of investors. It is designed to help achieve the investment objective of the investors.

Unit Linked Insurance Plans (ULIP)

Unit Linked Insurance Plan (ULIP) offers both insurance and investment element under a single plan. Investors who are looking to ensure financial security for family along with the returns by investing in a ULIP plan. In ULIP, a part of premium amount goes towards insurance cover and the remaining amount is invested in market-linked investments as opted by the policyholder. The beneficiary will receive the insurance cover and Fund Value at maturity, depending on the ULIP plan.

National Pension Scheme (NPS)

It is a long-term investment plan for retirement managed by the Pension Fund Regulatory and Development Authority. The money invested is allocated in equity, fixed deposits, government funds, liquid funds, and other investment instruments. Depending on your risk appetite, you can decide the proportion of invested money in equities. Investing in National Pension System offers higher returns than other traditional investments.

Public Provident Fund (PPF)

Public Provident Fund is a popular, long-term investment option that comes with an attractive rate of interest on your invested amount. With PPF investment, the current interest rate is 7.1% which is compounded annually. Being backed by the government of India, this investment offers guaranteed returns with no or minimal risk involved. It is suitable for investors who are looking to earn high & stable returns.

Sukanya Samriddhi Yojana

Launched by government of India, Sukanya Samriddhi Yojana (SSY) is a savings scheme aim to secure the future of the girl child. It offers guaranteed returns on the basis of interest rate applicable for a certain period of time. Currently, the interest rate on SSY is 7.6% per annum (revised quarterly). It helps you accumulate a corpus that you can utilize for your daughter to meet her education or marriage expenses.

Bank Fixed Deposit (FD)

A bank fixed deposit is a popular and safe investment choice. By booking a FD, you get interest on a fixed rate of interest plus capital protection. However as per rules, each depositor is insured up to a maximum of Rs 5 lakh including both principal and interest amount. It means your total FD amount at the maturity up to Rs 5 lakh (from February 4, 2020 onwards) is safe in a bank fixed deposit. Earlier, this coverage amount was only Rs 1 lakh.

Senior Citizens’ Savings Scheme (SCSS)

This savings scheme offers retirement benefits backed by the government of India. Those aged above 60 years can opt for investing in Senior Citizens’ Savings Scheme from a post office or a bank. This scheme has a five-year tenure and it can be extended by three years at its maturity. The interest rate is revised every quarter and it is payable quarterly.

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY is a pension scheme managed by the Life Insurance Corporation of India (LIC), exclusively for the senior citizens. This scheme was primarily launched for 4th May, 2017 to 31st March, 2020. It has now been extended to 31st March, 2023. It pays out regular pension and you can receive pension on monthly, quarterly, or annual basis. You can contribute up to a maximum of Rs. 15 lakhs in this pension scheme.


Investing in gold is one of the top investments that people rely on to gain high returns over the time. You can invest in it by buying gold coins, bars and jewellery. Apart from buying gold physically, you can also invest in gold mutual funds, ETFs, and mutual funds.


While seeking to choose the best investment options, you need to identify your financial goals, and then pick investment options that help fulfil the goals. Also, you need to consider the component of risk involved and the return it offers on your invested amount.

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