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

High Return Investment in India

Without any doubt, there is a long list of options when it comes to finding the best investment options with high returns in India. But one question still pops up in our minds. Is there any investment option that can create a balance between returns and risk?

We all know that the higher the risk, the higher the returns and vice versa. Having said that, it becomes difficult to find an investment option that can provide high returns at low risk. In this article, we talk about the best investment options with high returns for your needs.

Explore The Best One Time Investment Plan With High Returns 

Listed below are the top 10 investment plans with good returns –

Bank Fixed Deposits

These are fixed-income based investments that provide a fixed interest over the period of investment. Fixed deposits are one of the most popular traditional investment options. These returns are free from market risk. The period of an FD can range anywhere between 7 days to 10 years. Despite the flexibility and low risk, you must note that the interest rates on FDs are not as lucrative as other fixed-income investment options like P2P lending.

Equity Mutual Funds

These are equity based mutual funds that invest only in equity shares. Mutual funds are the most popular high-return investment plan in India. The returns on mutual funds are affected by market fluctuations. This makes them one of the riskiest investment options. Despite the high risk, the potential returns make them an attractive investment option.

Equity Share

An equity share represents an investor’s stake in the company. It is a part ownership of the company where the investor owns a fraction of it. For someone seeking a long-term investment option, equity shares can yield extraordinary returns. But, one must not forget that the price of equity shares is affected by the volatility in the market and hence are very risky. Therefore, make sure you research well and understand the dynamics of the market before investing your hard-earned money in direct equity.

National Pension Scheme

National Pension Scheme is a government-backed pension scheme that aims to provide you security after your retirement. It is a fixed-income investment option. The fund invests in different types of instruments like equity, debt, bonds, etc. The investor starts getting a fixed amount every month after attaining 60 years of age. Unlike other pension schemes, NPS does not restrict the maximum limit of investment that can be made. Due to this, the returns from NPS are much higher than the returns from other pension schemes.

Public Provident Fund

PPF investment is a fixed income investment option where you can deposit upto INR 1,50,000 every year to earn fixed income later. It is a tax-free investment option that can be opened through a bank or post office. Even though it is a secure and low-risk investment option, the lock-in period is 15 years, and the returns are not as lucrative as other investment plans. With inflation looming at 7%, the current PPF interest rates of 7.6% are just enough to cover inflation. But they are not enough for someone who wants to generate wealth over a period of time.

Real Estate

Real estate investments mean purchasing a commercial, residential or industrial property to earn rental income or to earn by reselling. Investing in Real estate can give very high returns over a long period of Although it is a low-risk investment option, the initial investment amount is very high. You will require a large sum of money to purchase a property. In addition to that, real estate investments are not liquid and can take a lot of time to sell.

Gold ETFs

Gold ETFs are exchange-traded funds that allow the investor to invest in gold without having to invest in physical assets. The price of gold ETFs is determined by the price of physical gold. Unlike physical units of gold, gold ETFs are highly liquid and can also offer high returns. But, you must also note that the price of gold ETFs is affected by market volatility and hence is risky.


ULIP’s of Unit Linked Insurance Insurance Plans are hybrid investment options that act as an insurance and simultaneously provide the benefit of mutual fund investments. The investor has to pay a premium, a part of which is used towards providing insurance cover, and the rest is invested in different financial instruments like stocks and bonds. These are good long-term investment options with a lock-in period of 3-5 years. Moreover, the proceeds on maturity are tax-exempt.

Debt Mutual Funds

Debt mutual funds invest in fixed-income instruments like bonds, commercial papers, treasury bills, and other money market instruments. These are monthly investment plans with high returns. If you are looking for an investment option that provides you with a steady stream of income, debt mutual funds can be your best. However, the returns on debt mutual funds are not as high as other fixed-income investments like P2P lending.

Peer to Peer Lending

P2P lending platform is a non-traditional investment option that allows investors to directly lend money through fintech platforms without the need for intermediaries like banks. Unlike equity investments that carry market risk, P2P investments are debt based and are not affected by market volatility. It provides high returns at relatively low risk. As opposed to other fixed-income investments, the returns on P2P lending are considerably high. P2P lending is done through online platforms like LenDenClub, making it accessible to the people of rural India as well.

3 Best Investment Options With High Returns

As mentioned above, there are many high-return investment plans to opt from best investment plan for 1 year to best investment plan for 5 years. But what to do if you are an average investor with low-risk tolerance? We have listed below 3 high-return investment schemes that you can invest in for the next 5 years.


The primary goal of the majority of the investors is to find an investment option that can provide them with higher returns and, at the same time, carries minimal risk. If you are someone with the same goal, peer-to-peer lending is definitely your go-to option.

Basically, P2P lending allows the investor to directly lend money to borrowers through online marketplaces like LenDenClub. The digitised nature of P2P investment makes it highly accessible. By removing the need for intermediaries like banks, P2P investments require lesser compliances and provide higher returns to investors. Because of low operational costs, most of the interest income is passed on to the investors.

The investor receives a periodic interest on the investment. Unlike equity shares and mutual funds, the returns on P2P investments are not affected by market volatility. Moreover, P2P websites like LenDenClub apply a robust borrower screening model based on 200+ unique data points. It reduces the risk of default on repayments. Also, the returns on P2P investment are higher than that provided by other fixed-income investments like FDs and PPF.

Unlike traditional banks that might take upto weeks for processing a loan, P2P websites allow real-time processing of loans with the help of technology. The presence of an online marketplace makes the process quick and reduces the complexity of documentation.

The major risk associated with P2P investments is the risk of default in repayment. But, robust borrower screening and multiple checks followed by platforms like LenDenClub can reduce the risk of default.

Fixed Deposits (FD)

Bank fixed deposits are well known for providing and low returns, and that too at very low risk. FDs are generally secure and are not affected by market fluctuations. FDs have a flexible tenure which can range anywhere from 7 days to 10 years, and offer fixed rates of interest. The returns can be paid both periodically or reinvested upon maturity, depending on the type of FD selected.

FDs offer the flexibility to choose whether the investor wants to receive a periodic interest payment or reinvest the amount on maturity. Whether you want a steady stream of income or want to create wealth, FD can be a good option.

FDs have been the safest bet for middle-income groups for several decades. Despite being the safest option, the returns on FDs are not enough to beat the annual inflation, which currently looms at around 7% against FD returns of 4-5%.

Debt Mutual Funds

As discussed above, debt mutual funds are those mutual funds that invest only in debt instruments. In other words, the mutual funds that invest in fixed-income instruments like FDs, bonds, commercial papers, and other money market instruments.

The returns on the debt mutual funds are the cumulative returns on all the instruments a debt mutual fund invests in. If you have a very low-risk tolerance, these mutual funds can be the most suitable option for you as the returns are free from market risk.

Even though debt mutual funds are super safe, the potential returns are not enough to cover the inflation. Furthermore, while the returns are higher than a normal savings bank interest, it is still less than the interest offered by P2P investment.

Factors to Consider While Choosing the Best Investment Plan With High Returns in India

Irrespective of the options available and the pros and cons of each investment option, the best investment plan depends on individual preferences. Given below are the major factors to consider before choosing your plan.

Investment Objective

Every investor invests with the aim of fulfilling an objective. Ask yourself, Why do you want to invest? It could be something specific like saving to buy a house, planning your retirement, or something general like increasing your wealth. Once you know your investment objective, you can easily calculate the amount you want to earn by the time your investment matures. This will further help you find out the most suitable investment option.

Return on Investment

The next thing you need to determine is the return you expect to earn on your investment. Let’s say, you want to purchase a house 10 years from now, and you want 60 lakhs for the same. You have 40 lakhs which you are planning to invest today. In this case, your return on investment is 20 lakhs. Knowing this amount will help you choose the best investment options with high returns for yourself.

Investment Horizon

The investment horizon refers to the time period for which you want to invest your money. Depending on your investment objective and the return you expect, you must determine the time period for which you can invest your money. In the above example, the investor expects to buy a house 10 years later, and therefore, his investment horizon is 10 years.

Risk Tolerance

Risk tolerance refers to the amount of money that you are willing to lose in order to earn the required return. At this point, it is important to know that in finance, the risk is directly proportional to returns. In simple terms, the more the risk, the more the return, and vice versa. If you have a high-risk tolerance, you can go for high-risk investments like equity shares. P2P investments are your best bet irrespective of your risk appetite.

Why do you Need Savings and Investment Plans?

Are you still wondering why you need to invest in the first place and why do you need to plan it beforehand? Here is the answer –

To increase Wealth

Planning your investments in your 20s can help you build a passive source of income and generate a huge amount of wealth by the time you reach your 50s. One of the primary reasons you need to start investing today is to generate more wealth. Remember, the earlier you start your investment journey, the more wealth you can create.

Provide Security to Family

Investment planning at an early age enables you to save money for the future. Having enough money to take care of your family’s future needs provides a security blanket and peace of mind.

To Plan Your Retirement

Investing a small amount towards a retirement fund can help you develop a corpus by the time you attain your retirement age. It provides you with financial freedom in your golden years.

To Improve Quality of Life

Monthly investment plans with high returns like P2P lending can help you improve the quality of your life. It allows you to earn monthly interest on investment and provide that extra income to splurge on your luxury.

Top Strategies for Best Returns on Investment in India

Once you have identified the best plan for yourself, it is time to figure out the investment strategy that suits you the best. Here are some popular investment strategies –

Income Investing

Income investing is a strategy that is used by people who want to develop a regular stream of income and have a low-risk tolerance. Under this strategy, the investor selects the assets and investment instruments that can generate a monthly income. Some of the prominent examples are Fixed deposits, P2P lending, rental income on property, bonds, etc.

This strategy is good for those who want to generate extra monthly income to increase their standard of living and fund their expenses. It not just helps increase the living standards but can also help generate wealth over a long period of time.

Growth Investing

A growth investing strategy involves looking out for companies that are yet to take off but have a promising future and potential for financial growth and investing in them before they start showing growth.

This investment strategy focuses on increasing the wealth of the shareholders. Investors invest in start-ups and small businesses that are to show better growth than their competitors in the near future. This is a great strategy for long-term investors.

Value Investing

The value investing strategy is used by bargain shoppers who search for stocks that they believe are undervalued. In other words, they purchase stocks whose market price does not reflect their original value. They believe that such undervalued stocks have the potential to provide extraordinary returns in the long run.

This type of strategy is the most suitable for those who have a gradual growth mindset and the patience to hold the investment over a long period of time. Before you choose to follow the value investing strategy, you should remember that some businesses might take years to show results and earn you the required profits.

Rupee – Cost Averaging

Rupee-cost averaging is a method in which the investor invests a particular amount of money every month into the market. Even the most experienced investors find it difficult to predict the right time to buy and the right time to sell. This strategy helps you avoid the problem of finding the right time of entry and exit. Regular investments help you capture the prices at both low and high levels. It also reduces the average cost per share of your investments, resulting in higher returns.

LenDenClub is India’s largest alternate investment platform which started operations in India in 2015. We have been helping investors 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 investment returns. 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 investment 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’ investment amounts.


*P2P investment is subject to risks. And investment 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 returns received by investors

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