In this article, we will explain about best zero-risk investment options because some people may be wondering what kind of investment opportunities come with zero risk. Well, there are plenty of them when you think about India! For instance, investing in stocks or bonds is a great way to invest without any risk. Another example would be investing in unit-linked life insurance plans and fixed deposits and senior citizen investment schemes are also great investment plans with low risk.
What is a Zero Risk Investment?
A "zero-risk investment" is a type of investment that has a guaranteed return, as well as little to no risk. This type of investment is typically used in cases where the investor needs to be guaranteed a return on their investment. Some examples of Zero/Low-Risk Investments are
- Fixed Deposits
- Public Provident Fund
- Senior Citizen Savings Scheme, etc.
What are the Advantages of Investing in Zero-Risk Investments?
Investing in zero-risk investments is a wise decision because it guarantees stability and safety. The following are the advantages of investing in zero-risk investments:
- Guaranteed stability and safety
- Less risk of losing money
- Better returns on investment
- Guaranteed return
- No need for a large amount of capital
- No need for high-level expertise
- High liquidity
- Accessible to everyone
Different Types of Zero/Low-Risk Investments in India that You Must Know About!
Fixed Deposits: Fixed deposits are a type of savings account in which money is deposited for a fixed period. The depositor can withdraw the money anytime during this fixed period. This type of investment is popular because it offers a higher interest rate than other types of savings accounts, as well as the peace of mind that comes with knowing that your money will not be lost if you need to withdraw before the fixed period ends.
Public Provident Funds (PPF): Public provident funds are the most popular investment option. These are funds that are managed by the government and a part of your contribution is invested in various stocks and bonds. They offer a great way to save money for future needs. It offers a lower rate of interest than other banks or financial institutions, but it is still better than any other savings options available in India. Public provident funds can be used to accumulate wealth over time without having to worry about inflation or the value of your money.
Money Back Policy: Money Back life insurance policy as the name suggests returns the money invested by the policyholder. In a money-back plan, the policyholder can get a certain percentage of amounts at regular intervals, instead of getting the lump sum amount at the end of the term. It can be termed as the endowment plan with a liquidity option. The money-back plan also provides a sum assured at the time of death of the policyholder or on the maturity of the policy apart from the money withdrawn at regular intervals.
Endowment Policy: An endowment life insurance plan is an investment plan that is designed to provide a regular income for the investor. An Endowment policy is a life insurance plan that apart from covering the life of the insured against uncertain death helps to save a certain amount of money regularly over some time. In short, an endowment policy consists of both Insurance coverage and the Savings option.
Mutual Funds: Mutual funds are a type of investment that pools money from many investors and invests it in stocks, bonds, or other securities. They can be used for investing in long-term savings or for trading short-term investments. Mutual funds are also known as open-ended mutual funds because they can buy and sell anything on the market.
National Pension Scheme (NPS): The National Pension Scheme (NPS) is India's state-sponsored retirement savings scheme. It was designed to provide pensions to individuals without any contribution from the individual. The Pension Fund Regulatory and Development Authority of India (PFRDA) administers the NPS scheme.
Sukanya Samriddhi Yojana (SSY): Sukanya Samriddhi Account is gaining popularity as one of the best investment plans in India for the girl child. If you have a girl child, this Yojana aims to facilitate corpus creation for the girl child. You can open a Sukanya Samriddhi Yojana account at both commercial banks and post offices. Furthermore, you can avail of significant tax savings under Section 80C of the Income Tax Act 1961.
Bonds: Bonds are a form of debt that is issued by a company or government to raise funds. The reason why companies issue bonds are that they have a large amount of capital that they need to invest. Bonds are typically used by companies to finance their projects or expand their business. Bonds can be used for different purposes such as financing real estate, public infrastructure, and private equity investments.
Tax Savings: Tax saving fixed deposits (FDs) are considered by many as one of the best investment scheme and investment plans in India because it provides significant tax savings benefits under Section 80C and can help you lower your overall tax liability.
Senior Citizen Savings Scheme: SCSS, is widely regarded as one of India's best investment options for various reasons. It offers significant financial security for senior citizens. The interest rate for this scheme is decided by the government every quarter. You can open an SCSS account at post offices and any nationalized banks.
Post Office Monthly Income Schemes: Post office monthly income scheme is most suitable for risk-averse individuals who are looking for low-risk investment plans with decent returns. Here, you must understand that while the income from post office monthly income schemes is fully taxable, the monthly income plans do not attract Tax Deduction at Source (TDS.
How to Choose the Best Zero-Risk Investments in India
There are many different ways to invest in India. However, there are some things you should consider before you choose the best investment for you. To Choose the Right Investment Plan in India consider the below points
- Every investment journey is different and depends on the investor's needs, timeframe and overall goals. Calculate your investment timeline to achieve each goal.
- Find the right insurance plus investment combinations for your goals by implementing a strategy.
- Diversify your portfolio: You might have invested your money in a single investment plan, but go for multiple investments and insurance plans
- Know about different charges levied on different investment schemes
- Review your investment plan periodically.
How to Buy the Best Investment Plan Online in India?
The most effective way to find an investment plan is to look at quotes that are proposed spontaneously. You can easily compare and contrast different plans, choose the best one for your needs, and save money & time in the process. Below is the process of purchasing an investment plan online at PolicyBachat:
- Visit the official website of the PolicyBachat investment plan
- Fill in the requested details such as name, mobile number, and email address
- Enter your age and city.
- Select your desired insurance quote.
- You should select a plan with the "premium" quote.
- You can pay for your Policy by using an online payment company.
Documents Required for Buying Investment Plan
Below are the documents required for buying an investment plan:-
||Salary Pay slips, Income Tax Returns, Bank Statement
||Aadhaar card, Pan Card, Voter Card, Passport
||Aadhaar card, voting card, passport, driving license, etc.
||PAN card, Aadhaar card, voting card, etc.
Investing in zero-risk investments is a good idea. Zero-risk investments are also called safe investments. These are the type of investments that will not put your capital at risk. They have lower returns than risky investments, but they are safer and more secure.
As an investor, you should be aware that there is no such thing as a completely safe investment. However, there are ways to minimize the risk and make sure that you are investing in something that has a low probability of losing money.