risk-free investment

risk-free investment

These days, a majority of the investors are keenly interested in investing in risk-free investments. Why? The concept is simple to understand this – nobody wants to risk his/her hard-earned money in a product that may not offer expected ROI.

Thus, if you are the one looking out for some time-tested and risk-free investment options; let’s list down five such schemes right away!

Fixed deposits

When it comes to investing in a risk-free investment option, you can always look up to fixed deposits or FDs as one of the safest investment options available today. Why? They offer a higher return which is fixed and has almost no risk involved. Compared to a bank’s savings account, it is prudent to keep your money in an FD.

Other than availing a fixed return with a flexible tenor and much more, it also offers a greater degree of liquidity. Leading online non-banking finance companies (NBFCs) offer up to 8.20% depending on your age and eligibility. An Fixed deposit interest calculator helps you know an exact amount or ROI that you would pocket upon the maturity of an FD account. An FD calculator is available free of cost at a leading lender’s website to help you know your ROI within a fraction of seconds.

Post office deposit

You can also deposit in a post office up to a period of five years. If you opt for a longer tenor, your return on investment will be higher. Although the option is not that good if you compare an NBFCs’ fixed deposit, you can still leave some amount for a longer period to gain profits. The major benefit that you get while opening a post office deposit is receiving tax benefits.

Recurring deposits or RDs

Under this investment option, you need to make a regular monthly investment and is a lucrative option for people with stable monthly income. Overall, an RD is a combination of savings and fixed deposit. If you choose to make some decent investment in a recurring deposit for some time, it can hand over some decent profits.

Fixed maturity plans

A fixed maturity plan is a close-ended scheme with a fixed term. It offers a good degree of flexibility as it has tenors ranging from 1 month to 5 years. The investment is made in market securities under the plan. The earned profits from such investments help to enjoy a decent amount of money. If you wanted to invest in this option, you should ensure to only go for AAA-rated FMP schemes.

Public provident fund    

A public provident fund or PPF is one of the preferred investment options available as it offers a higher rate of interest up to 9%. One is free to invest between Rs.500 to Rs.1.5 lakh in a year.

The Bottom Line

If you are looking to put your hard-earned money in a risk-free investment option, you just went through the five most lucrative options as discussed above. If you are looking to invest in a NBFCs’ FD scheme, you can invest online and reap a higher ROI.