My friend Suresh is looking for a safe investment option. In the recent past he lost a couple of money in the stock market and now he wants to invest only in safe investment options.
I know many of you must be looking to grow your wealth without taking on too much risk. While high-risk options like stocks and cryptocurrencies may promise skyrocketing returns, they can also lead to massive losses. If you’re more inclined towards stability and security, there are plenty of investment options in India that offer consistent returns while keeping your capital intact.
In this guide, we’ll walk you through the 10 best safe investments in India that can help you secure your financial future. Whether you’re a risk-averse investor or just looking to diversify, these options are worth considering.
10 Best Safe Investments in India
Bank Fixed Deposit
Tenure – 7 Days to 10 Years
Expected Return – 6-8%
Tax Applicability – Taxable at investor slab
A fixed deposit from a bank is said as one of the best safe investments in India because as per the guidelines of RBI, the bank needs to take insurance of the deposit placed by you.
In fixed deposits rates of return are fixed and known, there is no uncertainty. Tax is applicable as per slab on FD to avoid TDS on FD you can submit form 15H/15G. You can download 15H/15G form from here.
Fixed deposit investment gives a moderate return and is best for small investors.
Recurring Deposit
Tenure – 6 Months to 10 Years
Expected Return – 7-8%
Tax Applicability – No TDS by Bank but interest is taxable at investor slab
A recurring deposit is a special kind of deposit where you need to deposit a specific amount at monthly intervals. In simple terms, it is making a fixed deposit every month. The return of a fixed deposit will be slightly higher than a fixed deposit as in a recurring deposit you are making investments in parts.
Also Read – Top 10 Long Term Investment Options in India
Tax Saving Fixed Deposit
Tenure – 5 Years
Expected Return – 7-8%
Tax Applicability – Amount for Investment is deducted from your taxable income up to 1 Lac (80 C). Tax is applicable on interest income.
Tax saving deposit is another form of safe investment. Tax saving fixed deposit is fixed deposit which you can use for tax saving. The drawback with tax saving fixed deposit is your money will be locked for 5 years.
PPF (Public Provident Fund)
Tenure – 15 Years
Expected Return – 7- 8.8%
Tax Applicability – Amount for Investment is deducted from your taxable income up to 1 Lac (80 C). Return in tax-free.
PPF is one of the safe investment option. PPF will give you very good return provided you wait for 15 years. No other fixed investment instrument can match return of PPF. Even return from PPF is tax-free.
MIS (Monthly Income Scheme)
Tenure – 5 Years
Expected Return – 7- 8.4%
Tax Applicability – Interest income is taxable
MIS is post office scheme suitable for retired employees/ Senior Citizens. You can invest from 1500 Rs/- to 4.5 Lakh in this scheme. It is safe investment option as Post office is directly managed by government of India. As name suggest interest income can be withdrawn by investor on monthly basis.
SCSS (Senior citizen saving scheme)
Tenure – 5 Years
Expected Return – 7-9%
Tax Applicability – Interest income is taxable, Investment amount is eligible for 80 C deduction.
Senior citizen saving scheme is for senior citizen only. Senior citizen can visit nearest post office or designated bank to open senior citizen saving scheme account. This scheme gives good returns but investment is allowed by senior citizen only.
NSC (National Saving Certificate)
Tenure – 10 Years
Expected Return – 7-8.8%
Tax Applicability – Interest income is taxable, Investment amount is eligible for 80 C deduction.
NSC is another safe investment with decent returns. NSC can be purchased from Post office.
FMP (Fixed Maturity Plan)
Tenure – 1 Year or more
Expected Return – Depends but yet comparable to fixed deposit
Tax Applicability – Interest income is tax-efficient
FMP is another form of safe investment. Compared to FD here insurance is not taken as capital protection and returns are not fixed but yet it is found that FMP gives better returns compare to FD. FMP falls in the category of mutual funds.
Debt Mutual Funds
Tenure – Variable
Expected Return – Not fixed
Tax Applicability – Tax on capital gain and dividend
Debt mutual funds are like FMP only, return in debt mutual funds is not fixed so if you don’t want any uncertainty this option is not for you. Debt mutual funds invest money in fixed investment instruments. Debt mutual funds are easy to buy and sell. In recent past debt mutual funds has given good returns.
Saving Bank
Tenure – No maturity
Expected Return – 4 -7%
Tax Applicability – No tax applicable up to 10,000 Rs/ interest
Savings bank is another safe place to place your money, especially emergency funds. Don’t place excessive money in saving bank consider another investment options like FD etc.
When it comes to investing, safety doesn’t mean compromising on returns. The options listed above offer security while helping you grow your wealth in a risk-free or low-risk manner. The key is to diversify your investments based on your goals and risk appetite. If you’re looking for tax-saving options, PPF and NPS are great choices. If regular income is your priority, SCSS and POMIS are ideal. Want long-term wealth creation? Debt mutual funds and government bonds are worth considering.
Pick the investment that aligns with your financial goals, and watch your money grow safely!
FAQs
1. Which is the safest investment option in India?
Fixed Deposits, PPF, and Government Bonds are among the safest investment options in India.
2. Can I get monthly income from any of these investments?
Yes, Post Office Monthly Income Scheme (POMIS) and Senior Citizens Savings Scheme (SCSS) offer regular income.
3. Are there any tax-saving safe investments?
Yes, investments like PPF, EPF, NPS, and SCSS provide tax benefits under Section 80C.
4. What is the best low-risk investment for beginners?
Fixed Deposits and Recurring Deposits are great low-risk options for beginners.
