Wht is the safe way of investments with good returns?

you need to read the answer of the 1st responder several times. The answer is right on the money. Over a long period of time--10 years--a good mutual fund should outperform t-bills by about 4 to 5% annually. I say should. Whether it will or not depends a lot of what the future holds, which we do not know. U S government finances are so precariious that t-bill rates might very well become more than equity returns and the risk of t-bills might be more than the risk of equities. Actually the smart money is moving overseas. Mostly only the Chinese and the OPEC members are buying t-bills because they can't figure out what else to do with the paper.

Return on investment compensates the investor for foregoing the use of his money and for the risk involved in the investment. Therefore a good return on a safe investment is lower than a good return on a risky investment. In the United States, the safest investment consists of US Treasury bills, which are considered risk free, so the return on them is relatively low. To earn higher returns you have to assume more risk. So a good return on a stock investment may be 8 percent per year while a good return on a government bond may be only 4 percent. You have to decide how much risk you are willing to bear and then find the investment that provides a satisfactory return for that degree of risk.

The Swiss Mutual mention above is a SCAM. Please don't fall for it:

http://en.wikipedia.org/wiki/Swiss_Mutua...

DIVERSIFY - DIVERSIFY - DIVERSIFY!

You could start off with a good large cap mutual fund if you only have a small amount to invest (ie: less than 5K). Or, if you have more to invest-- you could break it up and invest in a broad range of mutual funds to diversify even more.

You should probably have some invested in a large cap, medium cap, small cap and international fund. You should also consider bonds or a bond fund. How much you put in each depends on your long-term objectives and risk tolerance. Here's a great tool to help:

http://www.smartmoney.com/oneasset/