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5 Low-Risk Investment Options In India

It is important to generate a stream of passive income through investments to secure your future. When evaluating the different investment instruments, you should account for your financial stability, risk appetite, active income sources, and age in addition to rates of return and methods of investment.
If your risk appetite is low and you want to boost your income, research various investment options and choose an instrument that offers guaranteed returns as opposed to one with fluctuating returns.

You can consider low-risk investment options such as Fixed Deposits from Bajaj Finance. They give you FD interest rates of up to 8.75% when you start a cumulative FD for at least 36 months, or up to 9.10% if you are a senior citizen opting for a cumulative FD for at least 36 months. Additionally, a minimum deposit of Rs.25,000 and a flexible tenor from 12 to 60 months allows you to invest as per your needs.
Take a closer look at FDs and other low-risk investment options in India that you can consider if safety is your utmost priority.

Public Provident Fund (PPF)


PPF is one of the most trusted long-term, low-risk investment options in India. What makes it a safe choice is the fact that it is backed by the government and hence is sure to offer you returns as promised. PPF also offers you tax savings on the interest earned and maturity amount. You can invest a minimum amount of Rs.500 and maximum of Rs.1.5 lakh. However, you need to remember that you cannot make more than 12 contributions in a financial year towards your PPF.  The current rate of interest stands at 8%.

Post Office Monthly Income Scheme (POMIS)

As the name suggests this investment option offers monthly payouts. It is also a low-risk instrument as it is a government initiative. The maximum investment amount is Rs.4.5 lakh for a single account and Rs.9 lakh for a joint account. The maturity period for a Post Office Monthly Income Scheme is five years and currently offers interest at the rate of 8.5% per annum, making it a good low-risk, mid-term investment option.

Fixed deposits

Fixed deposits are one of the safest investment options that can you can wield to grow your savings, especially if you’re already using recurring deposits or a savings account. Apart from a high rate of interest you have the option to choose between a cumulative and non-cumulative fixed deposit. In the case of the former, the interest benefits from compounding and you get the entire amount on maturity.
However, when you choose a non-cumulative FD you can get regular payouts at intervals of your choice that can be monthly, quarterly, semi-annually or annually. You can use an Fixed Deposit ratecalculator to check your final maturity amount and invest accordingly.

Certificate of Deposit (CD)

CDs guarantee you a return at a specific interest rate over a fixed term which could be two weeks, six months, one year or three years depending on what you choose and the type of financial institution you invest with. Withdrawing money before the term ends results in you having to pay penalty charges so take a moment to assess your needs before you invest. CDs are low-risk like savings accounts and are a great way to save up for a big-ticket purchase or a near-future goal. The minimum amount that you have to invest in a CD is Rs.1 lakh and the maturity can extend up to 3 years (if you choose a financial institution).
With these investment options you can slowly and steadily build a corpus to secure your future without taking on any risk.