Top 5 Safe Investment Options in India

One always wants to invest his money safely in such a place where there is no risk, get a fixed return and get the principal amount on time.

For risk-averse individuals, there are some risk-free options other than bank fixed deposits where they can invest.

At present, the interest rate in banks has become very low, so these options can be chosen to get more returns.

1) Bonds

When bonds are issued, the interest rate on these is 7 to 9 percent and the interest is tax free. Those who do not get the opportunity to take these tax free bonds can buy them from the secondary market.

One thing to keep in mind is that the price of a bond always decreases in proportion to the interest rate. Many bonds are repurchased by government entities, so it is completely safe to buy them.

2) Debt Mutual Fund

Debt mutual funds offer higher returns than bank deposits as the corpus is invested in various government securities and secured corporate bonds. Keep in mind that the interest rate on debt mutual funds keeps fluctuating, which can be high.

The interest earned on bank deposits is added to the total income and tax is calculated on it, whereas in debt mutual funds, the option of dividend distribution remains in the hands of the investor, which is tax free.

3) Monthly Income Plan

Monthly Income Plan (MIP) This is a debt oriented mutual fund scheme that generates income. Most of it is invested in debt funds, which provide a fixed return. While some part of it is invested in equity, which gives higher returns.
Generally 75 to 80 percent is kept as loan, the rest is kept in cash in security.

4) Corporate ACD

Investing in corporate bonds gives more benefits and investment in it is considered comparatively safe. The interest and maturity amount is paid by the company from its revenue.

5) PPF SSC & NSC

These are all safe options for the long term. There is no liquidity in investment in all these, because they cannot be paid before the maturity period.

Conclusion: Before investing take care of various factors, they are- tenor, interest component and liquidity. What is mentioned in all these can be a part of your portfolio. All of these are less risky than more risky investments.