The quest for financial security is a universal one. All investment instruments involve a trade-off between the potential for profit and the likelihood of risk.

Low-risk investments like Fixed Deposits (FDs) and provident funds generally offer stable returns. However, they may not keep up with the high returns offered by market-linked instruments. Check out some of the safest investment avenues available in India.

Fixed Deposit

This is a popular investment choice in India due to its perceived safety and competitive returns. Check out its features and benefits below-

• FDs are generally considered safe, as instances of bank defaults are rare
• As their interest rates remain unchanged throughout the tenor, you can earn steady returns
• They offer significantly better interest rates than regular savings accounts
• Investments in 5-year tax-saving FDs qualify for deductions under Section 80C of the Income Tax Act of 1961
• With these FDs, you can claim deductions of up to Rs 1.5 Lakhs in a financial year
• Banks and financial institutions often provide slightly higher interest rates for senior citizens

On financial marketplaces like Bajaj Markets, you can browse for FD plans from top banks and NBFCs. You can easily apply for a fixed deposit that best aligns with your investment goals.

Public Provident Fund (PPF)

It is a government-backed investment scheme known for its safety and stability. Here is a breakdown of its key features-

• By investing in the PPF scheme, you can enjoy peace of mind because it comes with a sovereign guarantee
• These are ideal for long-term investment, as they come with a tenor of 15 years
• They offer steady interest rates, unaffected by market fluctuations
• It allows you to claim tax deductions on contributions and tax-free returns
• You can choose to withdraw the entire amount or extend the investment to earn further returns
• The government is providing an interest rate of 7.1% per annum for the second quarter of FY 2024-25

National Pension Scheme (NPS)

It is another government-backed savings scheme to enable investors to build a retirement corpus. The Pension Fund Regulatory and Development Authority (PFRDA) manages this scheme. Check out its key features-

• NPS invests in a mix of assets like liquid funds, fixed deposits, and corporate bonds
• It also offers various schemes to suit investor profiles and risk appetites
• You can enjoy tax deductions of up to ?2 Lakhs each financial year under the Income Tax Act
• It also provides flexible options for both automatic and manual portfolio management
• It comes with broader eligibility and is open to employees from all sectors

You can invest in the National Pension Scheme through various financial marketplaces like Bajaj Markets Loan App. These provide a simple online application process, allowing you to complete the process from the comfort of your home.

Gold

The yellow metal has long been considered a safe-haven asset and a popular investment choice. Here is a breakdown of its key features-

• You can purchase gold in various forms, including physical gold (jewellery, coins, and bars), Gold ETFs, and Sovereign Gold Bonds (SGBs)
• It has historically been a good hedge against inflation, preserving the purchasing power of your investment
• It often moves inversely to the stock market, offering a potential hedge against market downturns
• This metal tends to hold its value over time, providing a degree of capital protection

National Savings Certificate (NSC)

It is also a government-backed investment option that offers fixed returns. Check out some of its key features-

• You can invest in this scheme easily through select commercial banks and post offices
• It allows you to begin your investment journey with as little as Rs 1,000, with subsequent investments in multiples of Rs 100
• It offers the flexibility to invest in 12 instalments or as a lump sum at once
• The Union Ministry of Finance has kept the interest rate of this scheme for the second quarter of FY 2024-25 at 7.7% p.a.

Post Office Monthly Income Scheme (POMIS)

It is a popular investment option for Indian households seeking a steady income stream. Check out the key features of the POMIS scheme below-

• It caters to various account holders, including single individuals, joint holders, and guardians or parents of minors
• You need to make a minimum deposit of Rs 1,000 to open a POMIS account.
• The maximum permissible balance is capped at Rs 9 Lakhs for single accounts and Rs 15 Lakhs for joint accounts.

Ultimately, the safest investment depends on your financial goals, risk tolerance, and time horizon. There is no guaranteed way to eliminate investment risk entirely. By understanding your options, you can make informed decisions and manage the inherent risk. 

Remember, diversification is key to managing risk. Spreading your investments across various asset classes can help protect your portfolio. Create a personalised investment strategy that aligns with your specific needs and circumstances.