Investments To Bet On That Fetch Better Return Than Bank Fixed Deposits

1. Bharat Bond ETF:

With yields traversing lower, this is a safe and lucrative debt fund investment with a portfolio of PSUs with a high ‘AAA’ rating. Pre-tax yield from the series that matures in 2030 and 2031 is 6.31 percent and post tax is 6 percent. So, higher than the pre-tax return of up to 5.5% on 1-year FD at major commercial banks.

Notably, Bharat ETF is a debt fund and hence enjoys indexation benefit. So, investors need to pay 20 percent tax in case of long term capital gains, which considerably increase their post tax return.

2. BPCL shares:

This is a divestment or privatization candidate and the recent cabinet proposal for 100% FDI in Oil PSUs can accelerate the privatization. In the last result announcement, the company announced a lucrative dividend, taking the total dividend for the FY to be 79 , and hence a dividend yield of a good 16.89 percent, considering the current MP of the scrip to be Rs. 467.8. So, apart from the capital appreciation, the stock offers good dividend opportunity.

Also other positives of the stock is that the company is a leader in terms of net profit as well as operating revenue.

Brokerage firm Sharekhan has given a ‘buy’ on the scrip with a target price of Rs. 520 in its report dated May 31, 2021.

3. Thematic Mutual funds:

Mutual funds from the category are mostly theme specific and for the past few months are gaining huge investor interest. While they offer good opportunity in terms of heavy returns, they are also riskier. Some of the good Thematic Mutual funds have doubled investors’ money in just over a year say for instance SBI Magnum Comma Fund, Tata Ethical Fund, Franklin India Opportunities Fund etc.

4. RBI Floating Rate Saving Bonds:

This is another safe and sovereign backed investment, while the interest rate for the same was to be re-set every six months, the rates have been retained at 7.15% until June 31, 2021. The rate on these floating rate RBI bonds is pegged to NSC rates. This is also a good option for fixed income investors including senior citizens who get a higher return of just above 7% in case of only few investments.

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