Top 6 Safe Investments In India [2024]

Many investment opportunities in India offer good returns. With many options to choose from, it’s pretty obvious not knowing where to invest. There are investments opportunities tailored to an individual’s goals and needs. To qualify a particular investment opportunity as “best”, we need to analyze your needs and risk appetite.

Indians generally prefer to invest in government-backed instruments as they are considered safe investment options. Here are some of the most popular investment opportunities in India:

Fixed Deposit Investments (FD)

Bank FDs are consider one of the safest investment options in India as there are hardly any instances of bank failures in FDs. Bank FDs offer a much higher interest rate than a regular thrift account. Investments in FDs with 5-year tax savings fall under Section 80C of the Income Tax Act 1961, and investors can deduct up to Rs 150,000 per annum when investing in them. FDs offer a slightly higher interest rate for seniors, the amount, the residency status (NRI or not) and the bank. FDs have a lock-up period. If you wish to withdraw during the lock-up period, the bank will impose penalties for an interest deduction on the investment. In addition to banks, other financial institutions also offer FDs.

Main features of bank deposits:

Get guaranteed returns over time

Ideal for risk-averse investors

Partial withdrawals and residual loans are available

Public Provident Fund (Ppf)

The PPF is a government-sponsored investment program. The PPF is considered the safest investments as government guarantees support the system. PPFs offer a much higher interest rate than a regular thrift account. The PPF investment has a lock-up period of 15 years.

Critical Features Of PPF:

Ideal for long-term financial goals as the program comes with an extended commitment period of 15 years.

The investment is not tied to the markets and offers guaranteed returns over time.

Upon expiration, you can redeem the entire corpus or renew the account at a five-year rate.

National Pension Plan (Nps) And Its Investments

The NPS is another government-sponsored pension plan. The system is bring about by the Pension Funds Regulation and Development Authority (PFRDA).

The NPS combines various investments such as cash, time deposits, and corporate bonds. There are different schemes under NPS that you can choose according to your needs.

Key Features Of The NPS:

Employees from all sectors can subscribe to the plan.

The scheme provides tax deductions of up to Rs 2 lakh per annum under the Income Tax Act 1961, Regulations

You can choose between automatic or active mode to manage your portfolio

Gold And Its Investments

Investing in gold is a traditional investment. The Indians love the yellow metal very much. Investments in gold come in the form of jewellery, coins and bullion. In addition to owning physical gold, gold investments can make by investing in gold ETFs and gold government bonds.

Main Characteristics Of Gold:

Investing in gold protects against inflation

Because the price of gold is inversely related to stock markets, investing in gold serves as a hedge against falling stock markets.

The price level of gold does not decrease significantly over time, giving you capital protection

Savings bonus of 7.75% of the GoI

G-Sec bonds replaced the old 8% savings bonds. These bonds were launch in 2018. As the name suggests, investors receive an annual interest rate of 7.75%. You can invest as little as Rs 1,000 in these bonds.

Savings bonus of 7.75% of the GoI

G-Sec bonds replaced the old 8% savings bonds. These bonds Were launch in 2018. As the name suggests, investors receive an annual interest rate of 7.75%. You can invest as little as Rs 1,000 in these bonds.

Key Features of 7.75% GOI Savings Bonds:

Your investments are back by government guarantees, giving you capital protection

You benefit from a guaranteed return of 7.75% per year

Recurring Deposit (RD)

A recurring deposit is an alternative to FDs. RDs also offer a much higher interest rate than a regular savings bank account like FDs. You can pledge your investment in the DR as collateral to qualify for secured loans. In addition to the investment options covered in this article, other popular investment options in India include the National Savings Certificate (NSC), stock markets and real estate.

Critical Features Of RD:

Investing in a DR for longer can instill a sense of financial discipline over time

You don’t need a large sum to start your investing journey as you can start with a small sum

You get guarantee returns over time as the investment is not tie to the stock markets.