5 Best low-risk Investment options in India

5 Best low-risk Investment options in India

Hi, When it comes to investing, most of us look for something that would be safe and reliable and keep them out of facing risks. All investment options are not risky. Today we are going to discuss about investments with low risks. For investors who are concerned more about the safety of their finances rather than capital growth, for them, these options will be helpful.

5 low-risk Investment options in India

So in today’s post, we will cover in detail about 5 such investment options.

Fixed Deposits, Recurring Deposits, Post Office Schemes, National Pension System (NPS), Government Bonds & Securities, Non-Equity Mutual Funds. Now, let’s cover each of these one by one.

See Also: How to find Undervalued Stocks in India

#1 Fixed Deposits & Recurring Deposits

Fixed Deposits & Recurring Deposits. FDs & RDs are safe investment options in India. For decades, they have been considered safe options. They are mostly offered at all the banks. They both have guaranteed returns with almost zero risk. The difference is that in FD, you invest a single deposit amount and in RD, you invest a fixed amount in regular intervals. If you dont want any risk on your investments, then you should definitely invest in FD & RD.

#2 Post Office Schemes

After FD & RD, the Post office scheme is considered to be the safest and secure investment option. The Post Department of India offers post office schemes. The returns from Post Offices schemes are comparatively higher to banks and other NBFCs.

The government provides 9 such schemes like Public Provident Fund (PPF), Sukanya Samridhi Yojana, Kisan Vikas Patra, National Savings certificates, Senior Citizen Savings Scheme, etc. In detail, in PPF, you get fixed returns and tax exemptions.

The lock-in period is 15 years with a facility of partial withdrawal after 5 years. If you want to invest after 15 years, you can extend it as well. In this scheme, to keep your account active, you need to deposit Rs.500 every year. Its current interest rate is 7.1% per annum.

In the post office scheme, online investment and tracking platforms are usually not provided. If you want to know details of other schemes like PPFs, then visit the Savings scheme under the India Post website. You can open your account from the nearest Post office.

#3 National Pension System (NPS)

After Post Office Scheme, our 3rd investment option is NPS. National Pension System (NPS) is a voluntary contribution scheme. The government of India launched this scheme to give retirement benefits to all its citizens. In this scheme, your investment is market linked where your money is managed by a professional fund manager.

So the risk is comparatively higher than PPF. You can deposit a minimum of Rs.500 and open your account. After maturity, a minimum of 40% of your corpus amount is utilized to give you a lifetime pension. The rest amount is paid in a lump sum. As this scheme is market-linked, so the returns also vary. But according to past records, you get 9-12% per year’s returns.

#4 Government bonds & securities.

The next investment option is Government bonds & securities. To borrow money from retail investors, it issues securities. It has a maturity period of 91 days to 40 years. The maturity period of government bonds is less than 1 year is called T-bill or Treasury bills. The maturity period of government bonds is more than 1 year is called Bonds.

Sovereign Gold Bonds or SGB is also considered under Government securities. In terms of returns, the securities with a maturity period of less than 1 year give an average of annual returns of 3-4%. the securities with a maturity period of more than 1 year give an average of annual returns of 6-7%.

Government securities are issued by the government itself so the risk is negligible. The biggest drawback with bonds & securities is that the investment amount is high which we retail investors may not be able to pay. For SGBs also, you need to invest a minimum of 1 gram of gold.

#5 Non-equity Mutual Funds

Today’s last investment option is Non-equity Mutual Funds. Yes, in Non-equity Mutual Funds, debt funds, liquid funds, money market funds, etc are included. In these mutual funds, your money is invested in safe investment options like government bonds, debentures, & gold bonds, etc. As not linked with the stock market, the risk is comparatively less here. As per time horizon funds, they can be short term, medium-term and long term. As per your risk and financial goals, you can select your mutual funds.


So these are 5 low-risk investment options where you can invest your money if you don’t want to take risk. However, the risk in the investments are low so the return is also low. Every investor must invest as per their risk appetite. If you want to take less risk then you can consider these options.

I hope you enjoyed this information. Let us know in the comments as to which investment option details you would want to see or any other option which wasn’t covered today. Also, Share this post, thanks you.

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