Most investors are inclined towards investments which promise sky-high returns as soon as possible with the minimal chance of risk involved in the losing principal money. This is one of the major reasons for which the investors are always in a quest to look for better options which van not only fetch them considerable number of profits but also promises them little or no risk. However, there is no specific sector of investment which can promise the absolute combination of high-return and low-risk. The returns are risks are mutually dependent and cannot be avoided completely while investing.

Some of the best sectors to invest in the fiscal year 2021 are mentioned below.

1. Mutual Funds

There are two types of Mutual Funds, Equity mutual fund and Debt Mutual Funds. Adhering to the Securities and Exchange Board of India (Sebi) Mutual Fund Regulations, Equity Mutual fund schemes largely invest in equity stocks. Investing in at least 65 percent of its assets in equity and equity-related instruments, an equity fund can be managed both actively as well as passively. Apart from being categorised according to market-capitalisation or the domains in which the invest is done, Equity mutual funds are either considered domestic in which the investments are done across the stocks of only Indian companies or international which allows investing in stocks of overseas companies.

Debt mutual fund schemes are preferable for investors who desire stable returns. Being less volatile, Debt mutual funds are considered to be less risky compared to equity funds. Primarily investing in fixed-interest, Debt mutual fund produces securities like government securities, commercial paper, corporate bonds, treasury bills, and other money market instruments.  

2. Public Provident Fund (PPF)

The Public Provident Fund is hugely popular amongst the investors. With a long duration of more than 15 years, the impact of compounding of tax-free interest is enormous. As the interest made and the principal amount invested has backup, it makes it a safe investment.

3. Bank fixed deposit (FD)

FD is regarded as a safer option than equity or mutual funds for investing in India. According to the need, one may opt for either of the available interest options comprising of monthly, quarterly, half-yearly, yearly or cumulative choices. The interest rate received is supplemented to one's income and is taxed as per one's payment slab.

4. Senior Citizens' Saving Scheme (SCSS)

One of the prime choices for most retirees, the Senior Citizens' Saving Scheme (SCSS) is the necessary option in the investment portfolios of retired professionals. As known from the name, only senior citizens or retired officials can make investment in this scheme. The scheme can be availed either from a post office or any bank by anyone who is above 60.

5. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

PMVVY is also for senior citizens who are aged 60 years and above. The scheme is to ensure them a guaranteed return of 7.4 per cent per annum. The scheme also offers pension income payable monthly, quarterly, half-yearly or yearly as chosen. At maturity of the scheme, the invested amount is reimbursed to the senior citizen and in case of death of the concerned senior citizen, the money will be remunerated to the nominee.

6. Real Estate

Apart from the house you reside in, the second property which you purchase can be termed as your investment. The location of the property where it is available is one of the is the prime factors which will regulate the worth of your property and also the rent that it can earn. Investing in real estate is highly profitable and can deliver returns either through capital appreciation and rentals. However, real estate is highly illiquid and other major risks involved in it is getting the essential supervisory endorsements, which has principally been addressed after the introduction of the real estate regulator.