How Do You Get 10% Returns? Top Ways to Invest in India

If you've ever plugged numbers into a calculator and dreamed of your money doubling fast, you're not alone. The idea of getting a 10% return each year sounds tempting, maybe even suspicious. Is it possible in India right now? Actually, yes, but it depends a lot on where you put your money—and how much risk you're willing to take.

Banks definitely won’t give you 10%. Even the best fixed deposits are stuck around 7% as of June 2025. To really aim for that 10%, you need to step into investments with some growth and risk: stocks, mutual funds, maybe even real estate. The catch is that no investment guarantees this number year after year. Sometimes you'll get more, sometimes less. Playing it smart means understanding where to look and not falling for so-called 'guaranteed schemes' that promise too much.

• Is 10% Return Realistic in India?
• Best Options for 10% Returns
• Risks and Common Pitfalls
• Smart Ways to Boost Returns

Is 10% Return Realistic in India?

The idea of bagging a 10% return makes a lot of people sit up. But is it just wishful thinking, or can you actually pull it off with investment plans in India? It’s doable, but it depends on where, how, and for how long you invest.

If you look at SEBI data from the past decade, the Nifty 50 index has given an average annual return of about 11-12%. But—and this is a big but—there are years when it tanks or goes flat. Mutual funds that invest in stocks, especially equity mutual funds, have managed to deliver 10% or more annually if you stayed invested for five years or longer. For shorter periods, the numbers jump up and down like a roller coaster.

Straight-up bank products like fixed deposits? Forget it. Even the highest FD rates these days give you around 7%, maybe 7.5% if you’re lucky and have a senior citizen account.

Check out this quick comparison of average annual returns:

So, yes, aiming for 10% is not out of reach if you pick the right investment and stay patient. The catch—it doesn’t come with guarantees, and you’ll have to stomach a fair bit of ups and downs. If you need safety, look elsewhere. But if you have time on your side, 10% is realistic when you play the long game.

Best Options for 10% Returns

Getting a 10 percent return in India isn't impossible, but you've got to know where to look—and what to expect. Here’s what’s been working in 2025 and what real numbers look like.

• Equity Mutual Funds: Let’s get straight—equity mutual funds are the go-to for most people chasing that double-digit return. Over the past five years, top-performing funds like SBI Small Cap, Nippon India Growth, and Axis Midcap have delivered annualized returns ranging between 11% and 16%. But there are ups and downs, so patience counts.
• Direct Stock Investing: If you know how to pick stocks, the Nifty 50 has had a CAGR of around 13.2% between 2015–2025. But this is not a hands-off option. You’ve got to keep tabs on what you’re buying. Think long-term and don’t chase quick gains.
• REITs (Real Estate Investment Trusts): Instead of buying a flat, REITs let you invest in commercial real estate and get rental income plus appreciation. Indian REITs like Embassy Office Parks and Mindspace Business Parks have shown 8–11% returns on average in the last 3 years, factoring in dividends and price growth.
• Peer-to-Peer Lending Platforms: Sites like Faircent and Lendbox claim 9-12% returns, but the risk is much higher since the borrower could default. You need to diversify your lending and accept the real risk involved.

Compare these four popular options at a glance:

If you want the 10% mark, equities and REITs are the most popular bets. But remember, returns go up and down. SIPs (Systematic Investment Plans) help you average out market swings, while lump-sum investing can give more volatility. There’s no magic formula, but these are the real-world ways folks in India are hitting close to 10% right now.

Risks and Common Pitfalls

Aiming for 10% returns sounds great, but it’s not without bumps along the way. If you’re jumping straight from savings accounts to stock investments, it’s easy to ignore the risks just to chase numbers. You need to know the real dangers so you don’t end up regretting your decisions.

The Indian stock market, for example, can swing wildly and test your nerves. In fact, during 2020 and 2022, the Nifty 50 had annual returns ranging from -7% to over 24%. Mutual funds, even the best performers, don’t promise the same returns every year. That’s why long-term averages matter more than a lucky streak.

• 10 percent returns are not fixed—no major market-linked investment guarantees this figure, even with reputable funds or stocks.
• If you panic and sell during a market crash, you lock in losses that could’ve recovered if you stayed invested.
• Some people get tempted by “exclusive” real estate deals or unlisted shares, but these often come with hidden fees, unclear legal paperwork, or low liquidity—you might not find buyers when you want to exit.
• Falling for scams or unofficial chit funds is still a big problem in India. Anything promising “double your money” or “guaranteed 10% every month” is a red flag.

Quick snapshot—here are some known stats as of June 2025:

The key is never to put all your money in one basket, and always read the fine print. Check if the advisor is SEBI-registered before acting on big promises. And remember—the more return you want, the more risk you take on. Jumping in without a plan or safety net is basically setting money on fire.

Smart Ways to Boost Returns

Aiming for that magical 10% isn’t just about picking the 'right' investment once—it’s about making smart moves, tweaking your plan, and knowing the little things that add up over time. Start by cutting costs. In India, people lose thousands every year just on transaction charges, high fund management fees, or by jumping between schemes. Always check if your mutual fund expense ratio is below 1.5%—lower is better. Direct plans of mutual funds usually charge less than regular ones.

If you’re in stocks, don’t chase hot tips or follow the crowd blindly. Instead, look for companies that have a steady profit record and low debt. For example, firms in the Nifty Next 50 index have delivered annual returns close to 15% over a five-year period ending 2024. But don’t sink all your cash into one sector or stock—spread it out. Diversifying means if one part of your portfolio tanks, the rest might hold steady or even grow.

• Set up SIPs (Systematic Investment Plans) in equity mutual funds. SIPs in top-performing funds like Parag Parikh Flexi Cap have clocked average returns of 13-14% over the last 7 years.
• Review your investments every 6-12 months. Dump poor performers, but don’t get caught up in short-term ups and downs.
• Stay invested for at least 5 to 7 years, especially in equity-linked plans. Returns may look dull in the short run but tend to rise over a longer time frame.
• Don’t ignore taxes. Long-term capital gains above ₹1 lakh in equities get taxed at 10%. Plan your withdrawals so you don’t lose gains to the taxman.

Here’s a quick snapshot comparing popular investments and their average annual returns (2019-2024):

If you want to squeeze out that last percent or two, automate your investing, stick to your plan, and ignore the noise from social media experts and swanky apps promising 'guaranteed' 10 percent returns. The only guarantees in investing come from discipline, homework, and time.