Here are six investment options that are currently trending in India with potential for increasing returns:
- Sovereign Gold Bonds (SGBs)
- Government-backed gold investment with 2.5% annual interest
- Tax-free capital gains if held till maturity (8 years)
- No storage concerns or making charges unlike physical gold
- Protection against inflation and rupee depreciation
- Additional benefit of potential gold price appreciation
- National Pension System (NPS)
- Tax-efficient retirement planning option with diversified investments
- Offers Tier 1 (retirement) and Tier 2 (voluntary) accounts
- Additional tax benefits under Section 80CCD(1B)
- Active and auto choice options for different risk appetites
- Potential for higher returns than traditional retirement schemes
- Equity-oriented Mutual Funds with ELSS
- Equity Linked Savings Scheme offers tax benefits under Section 80C
- Shortest lock-in period (3 years) among tax-saving instruments
- Potential for higher returns compared to fixed-income options
- Professional management with exposure to growth sectors
- SIP options for rupee cost averaging and disciplined investing
- Real Estate Investment Trusts (REITs)
- Growing investment vehicle in India offering real estate exposure without direct ownership
- Provides regular income through rental yields (usually distributed quarterly)
- Minimum investment lowered to ₹10,000-15,000, improving accessibility
- Commercial properties in major cities with quality tenants
- Benefits from India’s commercial real estate growth
- Digital Small Finance Banks Fixed Deposits
- Higher interest rates (7-8%) compared to traditional banks
- Deposit insurance up to ₹5 lakhs by DICGC
- Convenient digital operations with flexible tenure options
- Special rates for senior citizens
- Potential to beat inflation with relatively low risk
- Electric Vehicle (EV) and Green Energy Funds
- Exposure to India’s rapidly growing EV and renewable energy sectors
- Aligns with government initiatives like Production Linked Incentive scheme
- Available through thematic mutual funds and ETFs
- Long-term growth potential as India targets net-zero emissions
- Includes companies across manufacturing, technology, and infrastructure