Updated: Oct 28, 2018
What is it that most of the common people aim for before investing their hard earned money? It's handsome returns and no risk associated with their investment. That sounds too good to be true. Investments which yield higher returns are riskier than ones that offer lower returns.
So, before making an investment, you need to decide for yourself what you prioritize: low risk or higher returns. It would make the whole process realistic with genuine financial goals in sight. Here at Truebanker, we've made it easier for you to choose assets where you can invest your money at low-risk assets.
Here's our list of top 5 low-risk assets where you can invest and earn guaranteed returns on your investment.
1. Debt Mutual Funds
If you aim for regular returns on your investment, debt funds are assets to start with. They not only give you peace of mind because they are less risky but also offer substantial returns and that's what most Indian investors like you watch out for. Here you invest your money in government securities, treasury bills, corporate bonds and more, and get fixed-interest - about 6.5%, 8%, 7.5% for 1, 3, 5 year, respectively - on your investments.
2. National Pension System (NPS)
For a long-term investment plan, NPS is ideal, especially when retirement is in mind. It needs from you Rs. 1,000 annually to remain active, if you choose NPS Tier-1 account. Depending on how much risk you can afford, your money gets invested accordingly. Market return ranges from 9.5% to 11% for 1 and 5 years, respectively.
3. Public Provident Fund (PPF)
Here your interest is not only tax-free but also compounded. Hence offers huge returns on investments made for a 15-year tenure, which makes it a favorite of most investors. Also, the risk involved is negligible. If you are searching for a safe investment option with a sovereign guarantee, PPF is one such scheme.
4. Senior Citizens' Saving Scheme (SCSS)
For those about to retire, or have retired, SCSS should be their top priority while planning an investment. Specially crafted for senior citizens and those who have opted for retirement early in their career. If you plan to invest here, you can do so from any bank or post office, it's available there. It has a tenure of 5-year and, you get an annual interest rate of 8.3%.
5. RBI Taxable Bonds
On these Savings Bonds, which are also taxable, you get 7.75 % interest rate. For 7-year tenure, it can sum up into a huge return if you invest. Bond Ledger Account (BLA) is where your bonds, you have purchased, are credited. As proof of your investment, you are given in return of your investment a Certificate of Holding. It's a risk-free investment option and you can choose it to get steady returns on your investment.
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