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These plans are not only sustainable and low-risk options but also offer steady returns without compromising financial security.
FDs and PPFs have been the most preferred low-risk investment plans.(Representative Image)
Most people reinvest the returns from an existing investment to purchase more of the same investment or a different one, rather than withdrawing the returns for personal use. This strategy allows for the power of compounding to accelerate wealth growth over time. If you are also planning to reinvest your returns, there are many good low-risk investment plans to choose from.
From schemes like PPF and RBI to bank FDs, these plans are deemed low-risk as they have government backing. Moreover, they are not only sustainable and low-risk options but also offer steady returns without compromising financial security.
Check below a few low-risk investment options that one can go for.
Fixed Deposits: Bank Fixed Deposits, also known as FDs, are one of the easiest ways to reinvest your returns. It has been a go-to investment option in India for years, as many banks provide better interest rates over a period of time compared to other low-risk venues. In addition to this, FDs offer a range of other benefits like flexibility, tax benefits under Section 80C for a 5-year lock-in period, higher stability, periodic interest, and more.
Gold: Another safe investment option is going for gold. From buying gold jewellery, coins, and bars to investing in virtual gold, it is still considered a promising form of investment, considering that the price of gold does not fall significantly in a single day.
Senior Citizens Savings Scheme (SCSS): Introduced in 2004, this government-backed Senior Citizens Savings Scheme (SCSS) is designed to provide financial security post-retirement. One can invest between Rs 1,000 and Rs 30 lakhs during 5 years and get a fixed interest rate of 8.2 per cent. Coming to taxability, this investment plan provides tax benefits under Section 80C, and it is liable to taxation based on an individual’s tax slab and TDS if the interest exceeds Rs 50,000 per year.
Post Office Monthly Income Scheme (MIS): The next low-risk investment plan you can consider is the Post Office Monthly Income Scheme. It is a safe, government-supported monthly income scheme that starts with a minimum investment amount of Rs 1,000, and it can go up to Rs 9 lakh if you invest under a single name for a minimum of 5 years. You can also invest up to Rs 15 lakh under a joint account.
Public Provident Fund (PPF): This is another low-risk investment plan in India for years. With a lock-in period of 15 years, PPF is a government-backed investment scheme which is counted as one of the safest investment options. Additionally, this plan offers a much higher rate of interest than a regular long-term financial goal.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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