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10 Best Safe Investments in India

Investment

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August 23, 2014

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.

LIC Varishtha Pension Bima Yojana

Life Insurance

Shitanshu Kapadia

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August 14, 2014

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LIC of India new Varishtha Pension Bima Yojana will be launched on Independence Day 15^th Aug, 2014. Varishtha Pension Bima Yojana is guaranteed pension plan for senior citizen.

This pension yojana initiative is taken by government of India for the welfare of senior citizen of country. As per advertisement it is subsidize attractive pension scheme, with LIC as exclusive administrator. Let’s look at detail of this scheme.

LIC Varishtha Pension Bima Yojana

Eligibility – 60 years of age and above

Single Lump sum Premium –

Minimum Rs 66,665 (For Monthly pension)
Maximum Rs 6,66,6665

Pension –

Minimum Pension – Rs 500 per month
Maximum Pension – Rs 5000 per month

Benefit –

The pensioner will get pension during his entire lifetime

Assured return of 9% monthly (9.38% annually)
On demise of pension, Nominee receives pension price
Pension payment method – Monthly, Quarterly, Half Yearly, Yearly for life time

For more information refer to following poster by Government on Varishtha Pension Bima Yojana.

For More Information visit LIC Site.

12 Facts about Rakesh Jhunjhunwala

Money & Wealth

Shitanshu Kapadia

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August 12, 2014

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Rakesh Jhunjhunwala of Rare enterprise is rare personality. Rakesh Jhunjhunwala according to me is true champion of Indian stock market. Rakesh Jhunjhunwala is real inspiration for stock market investors.

Today I will share 12 unusual stunning facts of Big bull Rakesh Jhunjhunwala.

12 Unusual Stunning Facts of Rakesh Jhunjhunwala

By Stock market investment Rakesh Jhunjhunwala has made Rs 5000 Cr from 5000 Rs/- in 30 years. Imagine making 5000 Cr in 30 year.
According to Forbs magazine Rakesh Jhunjhunwala is considered as 46^th richest person in India for 2013 with net worth of $1.25 billon.
Rakesh Jhunjhunwala is many time referred as warren buffet of India and he is known to be a big fan of Bollywood. He has produced one hit movie called English Vinghlish.
He has taken pledge to carryout charity and he will donate 25 per cent his wealth in his lifetime.
Rakesh Jhunjhunwala enjoys few lakhs of rupee as dividend and he spend one third of his dividend income in charity.
Rakesh Jhujhunwala networth was Rs 3461 Cr in 2007 and value of his holding has plunged to Rs 1130 Cr in 2008 down turn. Although his wealth was plunged by one third he remain invested in stock market.
In past one year he has made daily gain of Rs 8.4 Cr in stock market. This gain is equals to million dollars a day.
Net worth of Rakesh Jhunjhunwala was nearly growing by Rs 60 Cr a week and 240 Cr month. If we break down further he made hourly around Rs 35 lakh in stock market. This money is enough in buying Audi or BMW car every hour.
According to latest report combined net worth of Rakesh Jhunjhunwala and his family is Rs 7261 Cr compare to Rs 4192 Cr last year. In last one year net worth of rakesh jhunjhunwala jumped by 73%.
Rakesh Jhunjhunwala current net worth is beating market cap of 96% of listed companies.
Titan, Lupin, CRISIL are hot favorite stock of Rakesh Jhunjhunwala His family holds equity share of over Rs 100 Cr in each of these companies.Apart from equity he also hold properties in Mumbai worth more that Rs 100 Cr.
Rakesh jhunjhunwala is foodie in nature, he love to watch food shows. He love Chinese food & dosa on street. As per report he is found of Horse and he own number of horses.

Also read:- 5 Secretes that make Rakesh Jhunjhunwala Successful Investor

Reference:- Rakesh Jhunjhunwala make $1 Million a day

If you find above facts interesting do share with your friends on facebook and Twitter.

15 Things to consider before buying Online Term Plan

Life Insurance

Shitanshu Kapadia

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August 7, 2014

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In today’s digital age, purchasing insurance has become as easy as ordering your favorite pizza online. But unlike a quick snack, buying an online term plan is a major financial decision—one that secures your family’s future. So, how do you know you’re making the right choice? Don’t worry; we’ve got you covered. Here are 15 crucial things to consider before clicking that “Buy Now” button.

15 Things to consider before buying an online term plan

1. Understand What a Term Plan Is

Let’s start with the basics. A term plan is a pure life insurance product that provides financial protection to your family in case of your untimely demise. Unlike traditional life insurance policies, there’s no maturity benefit. It’s like renting a house—you pay for protection but don’t get the premium back unless you choose additional features.

2. Assess Your Coverage Needs

How much coverage is enough? A good rule of thumb is to have a sum assured that’s at least 10-15 times your annual income. Factor in liabilities like loans, children’s education, and future expenses to determine an amount that secures your loved ones comfortably.

3. Consider Your Budget

While term plans are the most affordable life insurance products, it’s important to pick a premium you can consistently pay without stressing your finances. Online platforms offer tools to compare premiums—use them wisely.

4. Check the Insurer’s Claim Settlement Ratio (CSR)

A higher claim settlement ratio indicates a higher likelihood that your insurer will honor your family’s claim. Ideally, pick an insurer with a CSR above 95%. It’s like checking a restaurant’s reviews before you eat there—better safe than sorry!

5. Evaluate Policy Duration

The term of your policy matters. Ideally, your plan should cover you until you’re at least 60-65 years old, or until your financial liabilities reduce substantially. Buying short-term coverage might leave your family vulnerable.

6. Look for Riders and Add-ons

Riders are like the toppings on a pizza—they’re optional but add extra value. Popular riders include:

Accidental Death Benefit: Extra payout in case of accidental death.
Critical Illness Rider: Covers major illnesses like cancer or heart disease.
Waiver of Premium: Premiums are waived if you’re unable to pay due to disability.

7. Understand Premium Payment Options

Term plans offer multiple payment options—regular, limited, or single premiums.

Regular: Pay annually or monthly until the policy term ends.
Limited: Pay for a few years, but enjoy coverage for the full term.
Single: Pay a lump sum upfront. Choose an option that aligns with your financial plans.

8. Analyze Tax Benefits

One of the biggest perks of buying a term plan is the tax benefit. Under Section 80C of the Income Tax Act, premiums are eligible for a deduction of up to ₹1.5 lakh annually. Plus, the death benefit is tax-free under Section 10(10D). It’s a win-win!

9. Don’t Overlook Inflation

The ₹1 crore sum assured that sounds huge today might not be enough 20 years later. Inflation erodes purchasing power, so opt for increasing term insurance plans. These policies automatically raise your sum assured over time to keep up with inflation.

10. Opt for a Trusted Insurance Provider

The credibility of the insurer is as important as the policy itself. Look for established companies with a strong track record, excellent customer service, and user-friendly digital platforms.

11. Read the Fine Print

Before signing on the dotted line (or clicking “I Agree”), read the policy document carefully. Pay close attention to exclusions, terms, and conditions. For instance, deaths caused by suicide within the first year are usually not covered.

12. Check the Flexibility of the Policy

Life changes—your term plan should be flexible enough to adapt. Look for policies that allow you to increase your coverage as your financial responsibilities grow. For example, you might want higher coverage after marriage or the birth of a child.

13. Buy Early to Save on Premiums

The earlier you buy a term plan, the lower your premium will be. Age and health play a big role in determining the cost. It’s like booking flight tickets—the sooner you act, the cheaper it gets!

14. Ensure Proper Disclosure of Information

Be honest when sharing your medical history, lifestyle habits (like smoking or drinking), and personal details. Any mismatch or omission can lead to a rejected claim, leaving your family in distress.

15. Leverage Online Comparison Tools

Online platforms make comparing term plans quick and easy. Use comparison tools to evaluate multiple policies based on premiums, features, CSR, and add-ons. You can also read customer reviews to gauge service quality.

Buying an online term plan isn’t rocket science, but it’s certainly not something to rush into. By taking the time to understand your needs, comparing options, and choosing a credible insurer, you’ll ensure your family’s financial future remains secure. Remember, a term plan is more than just insurance; it’s peace of mind wrapped in a policy. So, do your homework, and invest in a plan that truly fits your life.