Introduction Investing ₹2 crore with the goal of achieving a 12% annual return is an ambitious yet potentially achievable target for disciplined investors in India. However, reaching this benchmark requires understanding the risk-return trade-off, diversification across asset classes, and realistic expectations about market volatility. This guide explores various bonds, equity options, and alternative investments available to Indian investors that could help approach this return target—while emphasizing that higher returns invariably come with higher risks. Nothing mentioned in this article constitutes financial advice. Past performance does not guarantee future results. Please consult a SEBI-registered investment advisor before making investment decisions. Understanding the 12% Return Benchmark Before diving into specific instruments, it’s essential to contextualize what a 12% annual return means in the Indian market: Historical Nifty 50 Performance: Over the past 15-20 years, Indian ...
Fix Deposit (FD) has gained a lot of
popularity in our country due to being a more secure investment option, but now
people are less attached to FD. The main reason for this is declining interest
rates. For the last one or two years, interest rates on FDs have come down by
three to four per cent. Earlier, where major banks used to pay more than seven
per cent interest on FD, they are now offering less than five per cent. In such
a situation, people are looking for other options for investment.
FD is considered a small-time
investment option. Most customers prefer to invest in FDs for two to five
years. There does not seem to be any more secure high-return investment option
in this period. One option we can see is debt mutual funds, but here too the
returns have been reduced from previous months. Therefore, experts believe that
now if customers want a more secure investment option, they will have to invest
for a longer period.
There are many options available in
the market for investors seeking higher returns with greater security. Today we
will talk about these major options. The first is the Voluntary Provident Fund
(VPF) and the second is the Senior Citizen Saving Scheme.
Voluntary Provident Fund (VPF)
Every month 12% of the basic salary
and DA from the salary of salaried employees is deposited in the Employees
Provident Fund (EPF). At the same time, the employer also deposits the same
amount in the EPF account of the employee. If employees invest more than 12 per cent of their salary in the PF fund, then it is called Voluntary Provident Fund
(VPF). VPF also gets interest at the same rate as on PF. As per the rules, any
salaried employee can deposit his basic salary and DA up to 100 per cent in VPF.
The VPF is currently receiving an annual return of around 8.5 per cent. Like
EPF, VPF also has the benefit of tax exemption.
Senior Citizen Saving Schemes (SCSS)
It is also a government-backed
investment scheme. This scheme is for people above 60 years of age. The scheme
currently offers interest at the rate of 7.40 per cent. In this scheme, a
maximum investment of Rs 15 lakh can be made in multiples of Rs 1,000. The
interest in this scheme is payable every quarter, so it can be used as regular
income. The SCSS account matures in five years, after which it can be extended
for a three-year block.
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