Top 10 Best Investment Plans with High Returns in India in 2023

Best Investment Plans with High Returns

Best Investment Plan With High Returns

Investment is an essential part of our financial planning and wealth creation. Earning money isn’t enough; we need to invest it to secure gains, beat inflation, and fulfil our financial goals. 

Instead of letting your funds lie idle, there are myriad ways to earn handsome returns from investments in securities, bonds, debentures, and other saving schemes. 

However, to the question ‘Which is the best investment plan in India?’, there’s not one rigid plan that suits everyone. There are multiple options, and one should choose an investment plan that best fits their unique needs.

This article discusses the top 8 best investment plans in India, their risk-return profile, benefits, and more.

Explore: Best Investment Plan For Monthly Income In India 2023

12% Return

List of Best Investment Plans

Here’s a list of our top choices for the best investment plans in India:

1. Mutual Fund (MFs)

2. Public Provident Fund (PPF)

3. National Pension Scheme or NPS

4. Unit Linked Insurance Plan (ULIP)

5. Fixed deposit (FDs)

6. Government bond

7. Sukhanya Samriddhi Account

8. Gold as an investment 

1. Mutual Fund

A mutual fund is an investment vehicle where investors pool together money to be invested in securities like stocks, bonds, debentures, etc., of different companies. A fund manager overlooks and manages mutual funds on behalf of the investors. It is a highly liquid investment option as one can sell shares and withdraw money within just a few days.

Mutual funds are one of the best investment plans with high returns. Investors can start small with a low investment corpus and choose a mutual fund type based on their risk profile. 

Tenure: One can invest in mutual funds for as short as a day, and the maximum tenure is perpetual. The ideal holding period is between 3 to 5 years.

Risk and Returns: The associated risk and accruing returns depend on the kind of mutual fund. Equity funds are high-risk, high-return funds, while debt funds are low-risk-low return funds. 

Withdrawal Options: Anytime using your broker or submitting a form offline.


  • A professional fund manager or broker manages funds.
  • Diversification of your investment portfolio.
  • Affordability and convenience of investing in small amounts.
  • Well-regulated by the SEBI (Securities and Exchange Board of India).
  • ELSS (Equity Linked Saving Schemes) quality for deduction under ITA Section 80C.

Check out: Best Investment Apps That You Should Know in 2023

2. Public Provident Fund (PPF)

A Public Provident Fund or PPF is considered one of the best investment plans in India for people looking for minimum to no risk options. It is a trusted low-risk investment appropriate for a salaried individual as income on PPF is not taxable. You can start a PPF even with a small investment of Rs 500

Tenure: There’s a lock-in period of 5 years and a 15-year-long investment tenure before you can actually avail of all the PPF benefits and gains. 

Risk and Returns: Zero-risk investment option with relatively higher returns over other investments in the same risk profile. The current PPF interest rate is 7.1%. 

Withdraw Options: You can make partial withdrawals after the period of lock-in.


  • You can begin investing in PPF with a small amount, such as Rs 500, and go up to Rs 1 lakh and 50 thousand per FY (financial year).
  • Take advantage of the tax exemptions available for PPF under Section 80C of the Income Tax Act of 1961. The principal sum, interest, and maturity amount are exempt from taxation under the provision.

Must Read: Best Child Investment Plans to Invest in 2023

3. National Pension Scheme or NPS

NPS is a government-backed investment option. The funds you put in an NPS are invested further in government bonds, securities, stocks, and other investments. 

NPS is an investment as well as a retirement alternative. It is also a low-risk investment option with a period of lock-in depending on the age of the investor, unlike mutual funds. 

Tenure: You can contribute to NPS until you are 60 years old

Risk and Returns: Low-risk investment option with a steady rate of return of 8-10% every year. However, the NPS trust doesn’t guarantee any returns, and changes in government policies may impact returns. 

Withdrawal: You can withdraw up to three times during your NPS tenure, and the amount should not exceed 25% of the contribution, excluding the employer’s contribution. 


  • Voluntary long-term investment cum retirement plan. 
  • Assured returns.
  • NPS investors can claim a deduction of 10% on pay (Basic+DA) under Section 80CCD(1), up with an upper limit of 1.5 lakh under Section 80CCE.
  • A great pension alternative and profitable investment (9-12% annualised returns)

Explore: Best Investment Platforms in India 2023

4. Unit Linked Insurance Plans (ULIP)

A ULIP is an insurance policy that also acts as an investment vehicle. It is one of the best investment plans with high returns because it offers a life cover and market-linked investment returns to policyholders. 

Under a ULIP, a policyholder has the flexibility to choose the type of funds they want to invest in, depending on their risk appetite and financial goals.

Tenure: ULIPs have a lock-in period of 5 years and can go up to 25 years. 

Risk and Returns:  Risk and returns depend on the kind of ULIP plan. You can also switch between investments during the plan’s tenure. 

Withdrawal: Make partial withdrawals either by cancelling or surrendering the policy. 


  • Life cover plus investment returns. 
  • Optional critical illness riders and accidental death benefits. 
  • You can avail of deductions on the premium paid towards the policy under ITA Section 80C, up to Rs 1.5 lakh. The maturity or death benefit received is exempt from taxation under Section 10 (10D)

Know where to invest money in india | 2023

5. Fixed Deposit (FD)

A fixed or term deposit is a suitable investment mode for risk-averse investors. The investor earns a fixed interest rate on a lumpsum amount during the tenure. FDs are the best investment plan offering secured returns away from market fluctuations. 

Tenure: An FD tenure can range from 7 days to 10 years

Risk and Returns: Minimum risk investments with good rates of return. The interest rate offered differs from institution to institution and on the investment tenure. 

Withdrawal: This can be withdrawn after the period of lock-in or prematurely, along with a penalty of 0.5 to 1%. 


  • Safe, flexible, and liquid investments. 
  • Senior citizens can get 0.5% additional interest rates.
  • Overdraft facility up to 90% on principal amount plus accrued interest.
  • Avail tax deductions up to 1.5 lakhs per year on tax-saving FDs under Section 80C of the Income Tax Act, 1961. 

Check out: Safe Investments Options for Indian Investors

6. Government Bond

It is a debt instrument issued by the Central or State governments of India. Such bonds are government securities (G-Secs) issued for both large and small investors. They are long-term investment tools in multiple variants, such as Sovereign Gold Bonds, Inflation Index Bonds, etc. 

Tenure: A typical G-Sec tenure can range anywhere between 5 to 40 years

Risk and Returns: The interest rates offered can be fixed or floating and may not be able to keep up with inflation rates. The accompanying risks include reinvestment risks, limited capital growth, etc. 

Withdrawal: Bonds are tradable instruments and can be sold in the secondary market. There’s no period of lock-in involved. 


  • High and stable interest rates.
  • Risk-free investments.
  • Tax-free interest income on tax-free bonds offered by the government. 

7. Sukhanya Samriddhi Account (SSY)

Sukanya Samridhi Yojna was started in 2015 by the government under the ‘Beti Bachao, Beti Padao’ program. The initiative is also one of the best investment plans in India for the girl child. Any parent or guardian can open an SSY account and secure their child’s financial future through regular deposits under the scheme. 

Parents can deposit up to 1.5 lakhs in lumpsum or multiple transactions in an FY for each girl child, for a maximum of 2 girls. 

Tenure: The scheme matures once the girl is 21 years old or when she marries after 18 years. 

Risk and Returns: Zero-risk, guaranteed returns of 7.6%. 

Withdrawal: Partial withdrawals of up to 50% of the account balance to fund higher education after class 10.  


  • Offers one of the highest interest rates under small saving schemes (SSS).
  • Comes under the exempt-exempt-exempt(EEE) category, i.e., principal amount, interest, and maturity amount are tax-free.
  • Minimum deposit requirements of Rs 250.

8. Gold as an Investment

Gold has remained a viable investment option among the Indians for ages. It provides a hedge against inflation. It is one of the least volatile asset classes and inversely correlated with stocks. 

Tenure: Not applicable. 

Risk and Returns: Gold prices have doubled over the past five years and only carry risks such as theft. 

Withdrawal: Not applicable


  • Decent returns over the long term.
  • Great mode for wealth creation.
  • Minimum market risks.

How to Choose the Best Investment Plan: Factors to Consider

There are some specific considerations you should keep in mind while deciding the type of investment choice: 


Define your investment goals and objectives. You could be saving up for your retirement, child’s education, marriage, or vacation. The goal of your investment also determines the tenure of your investment. Short-term goals can be fulfilled with PPFs, FDs, MFs, etc., while long-term goals call for investment schemes like SSY, NPS, etc. 

Risk Profile

Whether you are risk-averse or a risk-taker has much to do with your investment choices. If you seek more profits and are ready to take more risk, market-linked investments are a great choice. If not, look for investment plans with good returns at lesser risks, like government-sponsored investment schemes. 

Withdrawal Facility 

Determine the time period for which you can afford to lock in your funds. Go for a plan with a lock-in period of 5 years or the one that allows partial withdrawals. 

Death Compensation

If you are seeking an investment vehicle with insurance cover, opt for a ULIP plan or investment scheme with life cover to help your family sustain even when you are not around.  


The above list isn’t exhaustive but provides some of the best money investment plansyou can opt for. Always do your research with due diligence and carefully analyse your options before you take the leap. 

Measure your risk appetite while considering the gains from the investment options. Invest, diversify, and secure your future with these best investment plans in India.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping lenders diversify their investments beyond traditional investment instruments ever since.



The Reserve Bank of India does not accept any responsibility for the correctness of any of the statements or representations made or opinions expressed by Innofin Solutions Private Limited, and does not provide any assurance for repayment of the loans lent through its platform.

LenDenClub is an Intermediary under the provisions of the Information Technology Act, 2000 and virtually connects lenders and borrowers through its electronic platform via the website and/or mobile app.

The lending transaction is purely between lenders and borrowers at their own discretion, and LenDenClub does not assure loan fulfilment and/or lending simple interest. Also, the information provided on the platform is verified or checked on the best efforts basis without guaranteeing any accuracy of the data/information verification. Any lending decision taken by a lender on the basis of this information is at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower, fully or partially. The risk is entirely on the lender. LenDenClub will not be responsible for the full or partial loss of the principal and/or interest of lenders’ lending amounts.

*This is an annualized yield and is subject to the maximum FMPP tenure, which is 5 years. P2P lending is subject to high risk and may cause an entire loss of principal.

*P2P lending is subject to risks. And lending decisions taken by a lender on the basis of this information are at the discretion of the lender, and LenDenClub does not guarantee that the loan amount will be recovered from the borrower.

** Average value mentioned is the weighted average of simple interest received by lenders

© 2024 LenDenClub by Innofin Solutions Private Limited | CIN: U74999MH2015PTC266499