Where to Invest Money for Good Returns?

Nitin Agrawal
Nitin Agrawal

One of the most frequently asked questions by the Indian workforce is, where should I invest my money? It happens with all of us, right? We start earning, we want to save up to buy a new house/car, and so, we are looking for the best investment plans available. ‘Which are the investments with high returns?’ is the question we ask ourselves, our peers, and our financial advisors. However, there are a few ground rules you need to know, to identify where you can invest money to earn high returns.

Generally increased risks give increased returns, while low-risk plans give relatively lower returns. Typically, investing in market-based plans, such as mutual funds, is one of the ways of generating higher returns against fixed-income products.

Mutual funds hold greater sway over other asset classes due to their ease of transaction, high liquidity, and variety of schemes. In fact, according to a report by the Economic Times, the AUMs for mutual funds in India recently reached an all-time high of INR 25.2 lakh crores in August 2018.

However, the extensive variety of mutual fund schemes can result in some confusion as to which is the best investment plan. Which is why here are some of the best investments with high returns, along with their advantages and risks, to help you out.

Best Investments with High Returns

1. Large-cap Funds

The funds that invest a major chunk of their investment in companies having larger capitalization are known as large-cap funds. These companies are mostly industry leaders, who have a stable presence in the market with consistent growth. Large-cap funds are known to provide steady returns on investment and are affected to a much lesser degree in case of a volatile market.


There are two major drawbacks of large-cap funds – one, the investment duration is longer, to earn a high rate of return on investment and two, the management fees is relatively higher than that for other cap funds.

Recommended for:

First-time investors who are testing the mutual funds’ waters and have not developed a high risk-appetite yet.

Some of the top large-cap equity investments with high returns recommended by Orowealth include:

Name of Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)Risk GradeReturn Grade
Axis Bluechip Fund (G)17.4416.5818.23LowHigh
Invesco India Growth Opportunities Fund (G)15.6617.2221.33Below Avg.Above Avg.
Aditya Birla SL Frontline Equity Fund (G)7.7614.9519.14Below Avg.Above. Avg.
Canara Robeco Bluechip Equity Fund (G)13.3515.3216.50Below Avg.Avg.
Franklin India Bluechip Fund – (G)10.813.4917.05Avg.Below Avg.
HDFC Top 100 Fund (G)12.5616.4619.28HighAbove Avg.
ICICI Pru Bluechip Fund – Inst – I (G)14.8617.9219.94LowHigh
Motilal Oswal Focused 25 Fund (G)5.3513.6119.34LowAbove Avg.
SBI BlueChip Fund (G)7.4114.0920.48LowAbove. Avg.

2. Mid-cap Funds

As the name suggests, mid-cap funds are those between large-cap and small-cap funds, speaking in terms of company size. These are investments in companies that have a market capitalization between $2 million-$10 million. The primary advantage of mid-cap funds is that they offer high growth potential and less volatility, making them an ideal investment option.


The main constraint of mid-cap mutual funds is that they have a smaller scope for liquidity. In addition, they do not give as high returns as small-cap funds and are more susceptible to market volatility than large-cap funds.

Recommended for:

Mid-cap funds can be a good option for investors who have some knowledge of the market, a larger risk appetite, and are willing to manage their portfolio actively, with or without the help of a financial advisor.

Some of the best mid-cap funds for high returns recommended by Orowealth include:

Name of Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)Risk GradeReturn Grade
L&T Midcap Fund (G)419.0631.02LowHigh
HDFC Midcap Opportunities Fund (G)7.8317.1528.82Below Avg.Above Avg.
Franklin India Prima Fund6.5416.0127.32LowAvg.
AXIS Midcap Fund (G)18.4314.4727.02Below Avg.Below Avg.
DSP BR Midcap Fund (G)5.4317.2229.32Above Avg.High
Edelweiss Mid Cap Fund (G)8.0415.0628.93Avg.Above Avg.
ICICI Pru MidCap Fund (G)4.713.6929.39Avg.Avg.
Invesco India Midcap Fund (G)12.3315.9128.2Avg.Avg.
Kotak Emerging Equity Fund (G)4.7316.4930.82Below Avg.Above Avg.
L&T Midcap Fund (G)419.0631.02LowHigh

3. Small Cap Funds

Small-cap investments are in companies having a smaller market capitalization, typically startups and new companies, which are still in the initial growth stages. These companies have a fluctuating rate of return with sharp peaks and valleys. Small-cap investments offer the maximum return on investment but are likewise subject to the highest risk.


Small funds are a risky investment, as they are highly susceptible to the volatility of the market. The portfolio is not as diversified as that for mid-cap funds either.

Recommended for:

Seasoned investors who have an in-depth understanding of the market and can predict the trends successfully. Also, small-cap investments require a high-risk appetite and active management of the fund portfolio.

Orowealth recommends some of the best small-cap fund investments with high returns as follows:

Name of Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)Risk GradeReturn Grade
HDFC Small Cap21.6423.4225.6Below Avg.Above Avg.
L&T Emerging Businesses Fund7.9624.84 –Below Avg.High
Franklin India Smaller Companies Fund1.4416.1230.35LowAvg.
Reliance Small Cap Fund – Direct (G)14.9425.5240.05Avg.High
IDBI Small Cap Fund – Direct (G)3.82
SBI Small Cap Fund – Direct (G)17.6424.3337.71Above Avg.Above Avg.
Aditya Birla SL Small Cap Fund – Direct (G)1.7619.7329.66Avg.Avg.
Kotak Small Cap Fund – Direct (G)3.9216.4728.76Avg.Below Avg.
DSP Small Cap Fund – Direct (G)0.1115.6834.36Avg.Avg.
ICICI Pru Smallcap Fund – Direct (G)-0.6311.9317.27Avg.Low

4. Multi-cap Funds

Multi-cap funds invest in various equity shares of companies having varying market capitalization. They are usually a combination of large-cap, mid-cap, and small-cap stocks in the right proportion to increase return on investment. Multi-cap funds combine the best of all three types of equity funds and hence have negligible disadvantages.

Recommended for:

Investors who expect a steady income from their investment and are not very aggressive about their returns can think of multi-cap funds as an investment option.

Some of the best multi-cap investment plans offering high returns are as follows:

Name of Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)Risk GradeReturn Grade
Mirae Asset India Equity Fund (G)12.5818.623.6Below Avg.Above Avg.
Motilal Oswal Multicap 352.6917.65Avg.Above Avg.
Franklin India Focused Equity Fund9.5113.3724.15Above Avg.Avg.
Kotak Standard Multicap9.5617.4323.14Below Avg.Above Avg.
AXIS Focused 25 Fund (G)17.3220.5521.59Below Avg.High
IDFC Focused Equity Fund (G)7.0117.7216.65Avg.Avg.
SBI Focused Equity Fund (G)17.5217.0923.58Below Avg.Above Avg.
Sundaram Select Focus – Inst (G)14.9215.6416.9Below Avg.Avg.
Canara Robeco Equity Diversified Fund (G)12.8214.9817.43Avg.Below Avg.
Parag Parikh Long Term Equity Fund (G)17.9117.2121.08LowAvg.


Equity Linked Savings Schemes are open-ended mutual funds that allow investors to save taxes even as they grow their money. The exemptions offered by the Indian government for ELSS investments make them a highly popular option amongst investors.


ELSS schemes have a lock-in period of 3 years, i.e. you cannot withdraw your investment before the 3-year duration is over. You can stop the scheme but withdrawal is possible only after 3 years from the date of purchase.

Recommended for:

Investors looking for long-term investment, with high returns and tax-saving benefits will find ELSS investment a good option. Not recommended for people who are looking for short-term schemes.

Some of the ELSS investments with high returns are as follows:

Name of Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)Risk GradeReturn Grade
AXIS Long Term Equity Fund (G)16.8515.6226.05LowAbove Avg.
Aditya Birla SL Tax Relief ’96 (G)16.817.9524.93LowHigh
DSP BR Tax Saver Fund (G)5.7516.2922.24Avg.Above Avg.
IDFC Tax Advantage (ELSS) Fund (G)10.2416.623.04Avg.Above Avg.
Motilal Oswal Long Term Equity Fund (G)4.620.8LowHigh
L&T Tax Advantage Fund (G)8.3117.1620.95Below Avg.Above Avg.
DHFL Pramerica Long Term Equity Fund (G)8.25
ICICI Pru Long Term Equity Fund – (G)19.6614.9621.4Below Avg.Avg.
Franklin India Taxshield – (G)9.913.2820.9LowAvg.
Invesco India Tax Plan (G)18.4516.924.04Below Avg.Above Avg.

This covers our list of recommended investments with high returns. Apart from equity mutual funds, there are several other options for investment that offer substantial returns, for the more conservative investor.

Other Investments with High Returns

The best investment options are those that fulfil the requirements of the investor within the expected duration. The choice of investment differs from person to person, depending on the investment goals, investment horizon, and risk appetite of the investor.

As we have seen previously, mutual funds have become the investment vehicle of choice for the current generation. Nevertheless, there are many other existing and upcoming schemes that offer investors strong returns on investment.

Here is a list of other investment options you can choose from, which give high returns over a significant duration.

Investment OptionMaximum AmountMinimum AmountMinimum Investment Period
Public Provident FundINR 1,50,000 (1 FY)INR 500 (1 FY)15 years
Real EstateNo LimitVariableNot applicable
Gold ETFNo LimitVariableNot applicable
Company Fixed DepositsNo LimitINR 2,00012 months
United Linked Insurance PlansNo LimitINR 1,00,000 for 45 years and below45 years or less
RBI Taxable BondsNo LimitINR 1007 years

Let us examine some of these in more detail.

Public provident funds are the most popular choice, for almost every working individual. They are a low-risk, average return, tax-free investment, good for the long-term.

Real estate is another popular sector of investment. The real estate market trends generally reflect those of the share market, which have been quite steady in recent times. However, the main disadvantage here is that the real estate market is relatively stagnant, so investors can expect only a moderate return on investment.

The company fixed deposits are a high-return investment, with higher risk than regular bank fixed deposits. Company FD’s have higher rates of interest, which is counterbalanced by the fact that they cannot be withdrawn before the duration of investment is complete.

Unit Linked Insurance Plans are very similar to mutual fund investments, with portfolio diversification among different stocks. The main difference is that the investment capital is divided into stocks and life insurance cover in this type of investment, offering better overall returns.


There are a lot of options for investors that offer good returns on investment. The choice of investment needs to made carefully, based on the investor’s understanding of the market, the extent of current financial security, and individual preferences.

Taking help from a financial advisor can be immensely beneficial here, to narrow down options and shortlist the best ones according to your requirements. The advantage of working with trusted financial advisors is that they not only assist you in creating a long-term and short-term investment plan that is financially sound but also helps you handle your investments successfully.

Which investment scheme do you plan to choose? Feel free to ask any other question you might have about where to invest money in getting good returns!

Nitin Agrawal
Nitin Agrawal

Nitin is the Co-founder and CEO at Orowealth and has worked at Deutsche Bank for 6 years in Equity Structuring across their London and Singapore offices. He is a MBA from IIM Bangalore and has a degree in Electrical Engineering from IIT Bombay.

  • Avatar
    Posted at 14:15h, 23 September Reply

    Which are the best investment options for senior citizens 65 and above.

  • Avatar
    Jitendra Vyas
    Posted at 11:53h, 30 September Reply

    Useful article. How much funds one should have in portfolio so it doesn’t become unmanageable ?

    • gaurav
      Posted at 06:07h, 03 October Reply

      Hi Jitendra,
      Generally, it is suggested to have 8-10 funds in one’s portfolio but the ideal portfolio will depend on a lot of factors like risk profiling, age, investment objective, liquidity requirement.

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