10 Safest Investment Options in India 2024| HDFC Life (2024)

February 19, 2024

10 Safest Investment Options in India 2024| HDFC Life (1)

Table of Content

1. 10 Safest Investment Options in India

2. FAQs on the safest investment option

3. Related articles

The Safest Investment options are those that can help you grow your wealth with minimum risk involved. To achieve a better and financially secure future, everyone needs to invest and grow their wealth. But among the several investment plansto help you save or invest, not everything guarantees a stable return. So, whether or not you have a low-risk appetite, if you are looking to build a corpus for your future, the trick is to choose the safest investment options that assure a solid fund.

But how do you pick out the investment opportunities with no or nominal risk? Let us help you with the choice of the safest investment options in India.

If you are planning to grow your wealth, there are a large number of investment avenues available, a section of which are risk-free ones, operating on fixed-income instruments, while the rest are market-linked with varying degrees of risks involved. Here one needs to choose the option that best fits his/her agenda. For that, it’s crucial to analyse one’s requirements and risk appetite. If you fall in the category of risk-averse investors, it’s important to stick to the safest investment plans.

Safest investment options to choose from -

1.Fixed Deposit (FD)

Offering a much higher interest rate than a regular savings account,fixed depositswith banks are still considered one of the safest investments. This is because, here your money is locked in for a pre-specified term at interest rates varying over the amount and tenure of deposit, the bank and the residential status of the account holder. The one-time investment stays safe with the bank, with hardly any probability of defaulting. Specific 5-year tax saving deposits also offer you tax deductions up to Rs 1.5 lakh a year under section 80C of the Income Tax Act 1961. Thus, features of this investment option include guaranteed returns and remains the best pick for those with low-risk appetite. Facilities like partial withdrawals and loans against deposits are also available.

2.Life Insurance

Life Insurance plansare one of the most prevalent and safe investment options available out there. With a life insurance you get a maturity amount at the end of your policy tenure and get a life cover to secure your financial future. Life Insurance also helps you save tax as per prevailing tax laws u/s 80C of the Income Tax act, 1961.

3.Public Provident Fund (PPF)

A government-backed investment scheme, the Public Provident Fund (PPF)allows you to save any amount within the range of Rs 500 to Rs 1.5 lakh per year and enjoy full tax exemption under section 80C of the Income Tax Act, 1961. With the backing of sovereign guarantees and assured returns without any link to the market, PPF continues to be a popular choice for growing your wealth, offering compound interest at 7.1% currently. The scheme comes with a 15-year lock-in period with partial withdrawals allowed from the 7th year onwards under specific circ*mstances, making it a great long-term investment opportunity. You can choose to either receive the full corpus or extend the deposit for 5 more years upon maturity.

4.National Pension Scheme (NPS)

Are you a risk-averse individual worrying over your retirement, looking to create a corpus or ensure a steady flow of income in retired life? TheNational Pension Schemecan be a wise choice because it enables you to build a corpus over a long term by investing your money into a portfolio of liquid funds, corporate bonds and fixed deposits to fetch returns as high as 10-14%, in a government-managed mechanism. It also offers tax benefits in terms of a total deduction of Rs 2 lakh under sections 80C and 80CCD(1B). Any Indian employee can open an NPS account, choose a preferred portfolio and invest till retirement. Upon maturity, a portion of the corpus can be received as a lump sum and the rest has to be used in buying an annuity plan that would ensure a monthly income in your retired life.

5.Gold

For ages, gold has been considered a safe investment. Buying gold jewellery, bars and coins or investing in sovereign gold bonds or gold ETFs doesn’t just contribute to wealth but can aid you in hedging inflation as gold prices has an inverse relationship with the stock market. Moreover, as gold pricesdon’t go down considerably over time, it also ensures capital protection.

6.Savings Bonds

Introduced in 2018, the GoI savings bond offers an annual interest at 7.75%. Wrapped in sovereign guarantees, these bonds help you retain and secure your capital. On the other hand, while you can start with an investment as nominal as Rs 1000, the interest rate ensures guaranteed returns and growth of your money.

7.Recurring Deposits

Alongside FD, another option of a bank-led investment scheme isrecurring deposits. In this, you invest a fixed amount of money in a pre-defined schedule at a much higher interest rate, compared to regular savings accounts. Thus, while RD helps inculcate a habit of saving, returns are assured too as there’s no link to the market. Recurring deposits also enable one to start with a small sum of investment.

8.National Savings Certificate

Purchasable at banks and post offices, the National Savings Certificate (NSC)is a government-backed fixed-income investment scheme. Here, one has to invest at least Rs 1000, followed by multiples of 100 in 12 equal investments or make the entire deposit in one go. With a lock-in period of 5 years, NSCs provide interests at maturity at a rate fixed by the Ministry of Finance. The investment also fetches you tax deductions up to Rs 1.5 lakh under section 80C.

9.Post Office Monthly Income Schemes (POMIS)

The Post Office Monthly Income Scheme (POMIS) is offered by the Indian Post. Single, Joint, Guardian of someone with unsound mind or minor account options are available to invest a minimum of Rs 1000. The maximum permissible amount for investment is Rs 4.5 lakh for a single account and Rs 9 lakh for a joint account, respectively.

10.Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Schema (SCSS) is a scheme by the Government of India specially designed for investors over 60 years of age. It has a guaranteed rate of return that provides a steady income stream and tax benefits, making it a low-risk option. Generally, the SCSS offers a higher interest rate than other options, making it a good option for senior citizens.

FAQs on the safest investment option

Q. What is the safest option for investing?

Fixed deposits with banks are still considered one of the safest options for investing. Here, you get to accumulate money at a much higher interest rate compared to regular savings accounts. Here, the fund remains secured and offers a guaranteed return upon maturity.

Q.Is there a 100% safe investment?

Nothing can be considered a 100% safe investment. However, a Public Provident Fund with guaranteed returns at compound interest is termed as one of the safest choices of investment in India as it is a government-backed scheme and has no link to the market.

Q.Which fund has the lowest risk?

The funds which let you invest in a diversified portfolio and have a strategy that focuses on downside protection offer you the lowest risks. It’s ideal to check and compare fund options from different banks and financial institutions to arrive at a choice that fits your requirements and risk-taking ability.

Q. How can I minimize my investment risk?

One of the best ways to minimize investment risk is to diversify your portfolio and choose a mix of asset classes. Here the high risk-high gain assets like equities will be balanced by the low risk-low gain assets like debts and fixed income instruments. Consequently, losses, if any, will be offset by the gains from the other side.

Q. What are the safest tax-saving investment options available inIndia?

The most popular among the safest tax-saving investment options in India include:

  • Public Provident Fund
  • National Savings Certificate
  • Life Insurance Plan
  • Equity Linked Savings Scheme (ELSS)
  • Sukanya Samriddhi Yojana

What is Investment?

Best Child Investment Plan

Short Term Investment

One Time Investment

ARN – ED/12/23/7149

10 Safest Investment Options in India 2024| HDFC Life (2024)

FAQs

10 Safest Investment Options in India 2024| HDFC Life? ›

Money market accounts, certificates of deposit, cash management accounts and high-yield savings accounts all carry FDIC insurance. Treasury bills, notes and bonds are backed by the U.S. government, making them another low-risk investment option.

What is the safest investment with the highest return in India? ›

Comparison of Top Safe and Return Investments in India
Investment OptionSafety LevelReturns
Government Bonds and SecuritiesVery High6-7%*
Debt Mutual FundsMedium6-8%*
Sukanya Samriddhi Yojana (SSY)Very High7.6*
Real EstateHighVariable
8 more rows

What investment is 100% safe? ›

Money market accounts, certificates of deposit, cash management accounts and high-yield savings accounts all carry FDIC insurance. Treasury bills, notes and bonds are backed by the U.S. government, making them another low-risk investment option.

Which mutual fund is best to invest in 2024? ›

List of Best Mutual Funds in India sorted by ET Money Ranking
  • Baroda BNP Paribas Balanced Advantage Fund. ...
  • UTI Equity Savings Fund. ...
  • ICICI Prudential Regular Savings Fund. ...
  • ICICI Prudential Credit Risk Fund. ...
  • ICICI Prudential All Seasons Bond Fund. ...
  • ICICI Prudential Medium Term Bond Fund.

Which sector will boom in 2025 in India? ›

India has long been a significant player in the global IT sector because of its abundant supply of highly qualified workers and hospitable business climate. As a result, the nation's IT market has been expanding quickly, and by 2025, sales are anticipated to exceed $300 billion.

Which sector will grow in next 5 years in India? ›

In conclusion, the healthcare and insurance, renewable energy, IT, FMCG, infrastructure, and electric vehicle industries are emerging sectors in 2024 to invest in. These industries offer substantial growth potential, driven by favourable market conditions, government initiatives, and changing consumer preferences.

What is the safest place to keep money in India? ›

10 Safest Investment Options in India
  • Fixed Deposit (FD) ...
  • Life Insurance. ...
  • Public Provident Fund (PPF) ...
  • National Pension Scheme (NPS) ...
  • Gold. ...
  • Savings Bonds. ...
  • Recurring Deposits. ...
  • National Savings Certificate.
Feb 19, 2024

Where can I get 12% interest on my money? ›

Where can I find a 12% interest savings account?
Bank nameAccount nameAPY
Khan Bank365-day, 18-month and 24-month Ordinary Term Savings Account12.3% to 12.8%
Khan Bank12-month, 18-month and 24-month Online Term Deposit Account12.4% to 12.9%
YieldN/AUp to 12%
Crypto.comCrypto.com EarnUp to 14.5%
6 more rows
Jun 1, 2023

What is the safest investment for a large sum of money? ›

Safe assets are those that allow investors to preserve capital without a high risk of potential losses. Such assets include treasuries, CDs, money market funds, and annuities. There is, of course, a risk-return tradeoff, such that safer assets typically offer comparatively lower expected returns.

What is the number 1 rule investing? ›

Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule.

What investment pays 10%? ›

Diversifying Your Portfolio to Reach a 10% Return

A diverse portfolio could consist of 30% in a mix of value and growth stocks, 30% in index funds, 20% in bonds, 10% in real estate and 10% in alternative investments like P2P lending or commodities.

Which SIP is best for 3 years in India? ›

Best SIPs to Invest in 2024 for 3 Years
  • Baroda Pioneer Multi Cap Fund: It is also known as the Baroda Pioneer Growth fund. ...
  • Canara Robeco Emerging Equities: It aims to generate capital by investing in diversified mid-cap stocks.

Which SIP is best for 20 years? ›

Top SIP Plans for 20 Years in India
Name of the FundFund Size (in Rs. Crores)1-Year Returns (%)
Canara Robeco Bluechip Equity Fund10,09013.97
ICICI Prudential Value Discovery Fund32,75424.29
Nippon India Large Cap Fund15,85522.71
HDFC Flexi Cap Fund38,66822.04
1 more row

Which SIP is best for 10 years? ›

Top SIP Plans of 5,000 Per Month for 10 Years
Mutual FundRisk InvolvedReturns (%)
ICICI Prudential Technology FundVery High28.08
Quant Active FundVery High33.67
Aditya Birla Sun Life Corporate Bond FundModerate8.19
Quant Large And Mid Cap FundVery High20.57
6 more rows
Feb 20, 2024

Which investment is best for next 5 years? ›

22 Investment Plans to choose from
  • Public Provident Fund (PPF) Traditionally considered to be among the best and safest investment modes in India, PPF is one of the most popular small savings scheme. ...
  • Mutual Funds. ...
  • Direct Equity. ...
  • Real Estate Investment. ...
  • Gold investment. ...
  • Post Office Saving Scheme. ...
  • Company Fixed Deposits (FDs)

Which stock is best for next 20 years in India? ›

Top 10 Stocks to Buy for Long Term
  • Reliance Industries Limited. Tata Consultancy Services. ...
  • Reliance Industries Limited (RIL) ...
  • Tata Consultancy Services (TCS) ...
  • Infosys Limited. ...
  • HDFC Bank. ...
  • ITC Limited. ...
  • Hindustan Unilever Limited. ...
  • Asian Paints.
May 9, 2024

Which sector will boom in 2030 in India? ›

India's current share is 2-3% in global space industry ($423 billion), but it can grow more than 10% by 2030. In june 2021, there were 368 private players in this industry and makes India reached to rank 5th in private sector participation in space sector.

How can I make wealth in 5 years in India? ›

Strategies On Ways To Become Rich
  1. Stocks are a popular choice for investors as they offer the potential for high returns. ...
  2. Mutual funds are also a diversified investment option. ...
  3. Fixed deposits and bonds are considered safer options on how to get rich. ...
  4. Real estate is also the best investment option in India.

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