If you are one of those folks who prefer to invest their money in avenues that provide a safer and reliable way returns, you are not new. There are many like you who want best returns on their investment without facing heavy exposure to risk. Whether it is a small investment or bigger one, staying safe and secure is one essential thing that is required by everyone as nobody would love to see their investment taking a dive down.
Though almost every investment carries some type of risk, there are many channels that are found to possess less risk exposure than others. As an investor, it is necessary for you to keep a check on all these avenues so as to make the right decision.
So if you are looking for some great risk free investment options in India, here are some great options that are known to carry lesser risk than other options.
Savings Accounts – Extremely Low Risk
Post Office Schemes – Extremely Low Risk
Fixed Deposits – Low Risk
Recurring Deposits – Low Risks
PPF (Public Provident Funds) – Low Risk
Non-Equity Mutual Funds – Low to Reasonable Risk Exposure
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Savings Accounts
One of the most preliminary investment channels is a savings accounts. Almost every commercialized bank today offers savings bank accounts in India. Though it is necessary to have at least one savings account to manage daily finances, it is also necessary to understand the point that it offers very low investment returns. In general, the returns are nearly around 4%, and this figure differs from bank to bank. If you are willing to set your money and make recurrent withdrawals, then a savings account can be a great choice. So, before choosing a particular saving account, it is recommended to compare the interest rates various banks have been providing these days.
Fixed Deposits
Another popular option that comes under the purview of safer investment avenues is fixed deposit. , Fixed deposit is one of the most secured investment options currently available in India. For several years, it has been a widely chosen option for Indians, and it has showed its role in the market. What can be a better avenue for excess funds? It is majorly offered at all the banks with assured returns at maturity, and most essentially, it is certainly risk-free.
Post office Schemes
The Post Department of India is known to offer a wide range of schemes that can help investors surge their wealth. Most importantly, it promotes a habit of saving among people. And also, the returns from Post Offices schemes are moderately higher to banks and other financial institutions. A post office scheme usually cannot be availed on online channels which means you can’t tack them on a portal or app. To invest in such schemes, there is only one option and that is to visit your nearest post office. With the rapid pace of digitalization, it would be possible very soon when investors can invest in such schemes online.
Recurring Deposits
According to the best stock broker in India, recurring deposits are very much like those regular fixed deposits. In case of a fixed deposit, the investment is made through one time money deposit, whereas in case of a recurring deposit, the investments in done in parts through fixed timely payments.. It can be monthly, bi yearly or annually, for example. Similar to the fixed deposit, the recurring deposit also ensures returns, and the interest rate on the recurring deposit does not vary throughout the investment tenure, the invested amount is provided as a lump sum along with the accrued interest on the maturity of the scheme.
Non-equity Mutual Funds
Non-Equity Mutual Funds can be considered a lot like debt and gilt funds, due to the offering of capital protection. They are investment schemes that get exposed to a low amount of risk. The money invested in such funds are further invested secure products like govt bonds, gold bonds, and debentures with fixed securities. The time prospect on such schemes is short, moderate, or long, and it relies primarily on the kind of fund that has been picked and the underlying financial objectives.
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Public Provident Funds (PPF)
A very popular investment option in India, the Public Provident Fund is known to provide steady returns and tax exemptions. The government-sponsored scheme offers this scheme to help people in saving money for their retirement. One can choose to invest in such a scheme by visiting a bank or a post office. Typically, the time horizon for this scheme is around 15 years, which can be extended further if required. However, even early withdrawals are appropriate in the scenario of the scheme. Overall, it is an all profit deal. It is safe, definite, and gives people an option to save taxes.
The Conclusion
At a time when the market is full of investment opportunities, it is quite easy to choose a scheme. But when it comes to choosing an investment scheme that is safe and presents less risk exposure, the above mentioned scheme are surely great. Even if you are investing in stock through the best trading app in India, you can devote some amount for investment in such schemes.