Securing your financial future is the most important thing in an individual’s life. Even a small investment done consistently over years will give good returns. But there are lots of investment options available in the market. Some of these are risky and some carry no risk at all. High risk investment options in India are share market, mutual funds, forex trading, corporate FD’s, commodities and many others. Then there are zero risk (safest) investment options such as PPF, Savings account, NSC and others.
Safest Investment Options in India:
For individuals who do not want to take risk their hard earned money, there are many investment products available which can earn them handsome money after a certain interval.
So listed below are the safest investment options in India and we’ll consider an example on making an investment of Rs. 10, 000 per month:
- PPF: Public provident fund is another zero risk and good return investment product. For the year 2015-2016 the interest rate offered is 8.7% compounded annually. If you plan to invest Rs. 10, 000 every month i.e. Rs. 1, 20, 000 in a year then returns from PPF would be Rs. 1, 30, 800 (at the end of the year). Note that minimum investment tenure in PPF is 15 years and invested amount and maturity amount is eligible for deduction under section 80C. You can make monthly contribution or lump sum in a year and the account can be opened in post office, nationalized bank and ICICI bank.
- Sukanya Samriddhi Yojana: Although this scheme is for the providing financial security to your girl child. An investment of Rs. 10, 000 per month (Rs. 1, 20, 000 per year) will give you Rs. 61, 57,840 after maturity i.e. 21 years. The most attractive benefit of the Sukanya Samriddhi Yojana is that the investment should be done only till the age of 14 years.
- Post Office Fixed Deposit: Interest rate offered is 8.40% to 8.50%. So the maturity amount (after one year) when monthly investment of Rs. 10, 000 is done will be Rs. 1, 30,080 – Rs. 1, 30,200. You can invest in post office for 1-5 years.
- Bank Fixed Deposit: The interest rate offered varies for each bank. But it’s in the range of 9.00% to 9.50% annually. So assuming you deposit Rs. 1, 20, 000 every year, then after one year the amount you’ll earn will be Rs. 1, 30,800 to Rs. 1, 31,400. Minimum tenure is one year and maximum is 10 years which can be renewed further.
- National Savings Certificate (NSC): Interest rate offered is in the range of 8.50% to 8.80%. So if you invest Rs. 10,000 per month then after a year you’ll earn Rs. 1, 30,200 to Rs. 1, 30,560. Investment tenure in NSC is 5-10 years.
- Recurring Deposit: Offers same interest as that of fixed deposit i.e. 9.00% to 9.50% annually. So investment of Rs. 10, 000 for 12 consecutive months will give a return of Rs. 1, 30, 800 – Rs. 1, 31, 400. Minimum tenure is one year and maximum is 10 years.
So if you don’t believe in taking risk when it comes to investing your hard earned money then you can invest in above mentioned products which will give decent returns.