The smart way to build your investment portfolio is to invest in the right plan at the right time. A well-planned financial portfolio is something that should be inclusive of diverse investment plans. Investing in inflation-beating instruments that give profitable returns can be used as your backup in times of market crashes. Successful and futuristic financial planning can be incomplete without reliable investment options.
Searching for an investment plan that is reliable, low-risk, and offers predictable returns can be overwhelming in the world of numerous plans. The presence of too many options can sometimes hinder an investor from making a well-informed financial decision. So, here we have the top 5 investment options that have been handpicked for you with extreme care to provide better returns.
Fixed Deposits
Fixed Deposits are commonly preferred savings instruments among investors looking for predictable returns over a fixed tenure.
Level of Risk: Generally considered lower risk compared to market-linked investments
Features:
- The fixed deposit tenure ranges from anywhere between 12 months to 60 months.
- Investing in a Shriram Fixed Deposit can yield you interest rates up to 8.15%* p.a., inclusive of 0.50%* p.a. for senior citizens and 0.05%* p.a. for women depositors.
- Investors can open a fixed deposit account with reputed NBFCs like Shriram Finance with investment amount as minimal as ₹5000.
- While investing in fixed deposits investors can personalise their pay-out period based on their financial requirements. They can opt for a non-cumulative fixed deposit plan if they would like to have their interest returns in the form of regular income. To get the maximum returns possible for a selected tenure, it would be better to opt for cumulative fixed deposit plans.
Pro Tip: Investors can calculate their returns using our Fixed Deposit Interest Calculator to plan the investment amount, tenure and maturity value.
Whom is it best suited for?
Investing in a fixed deposit is the right option for investors who want to invest in a predictable yet rewarding investment plan. This plan can prove to be beneficial for achieving both your long-term and short-term financial goals.
How to apply?
Investors can opt and invest in fixed deposit online or offline. It is more hassle-free to apply for a fixed deposit from a reputed and well-trusted NBFC online.
Public Provident Fund (PPF)
Among all investment possibilities in India, the Public Provident Fund is considered a government-backed long-term savings scheme.
Level of Risk: Low Risk Investment
Features:
- The tenure of investment in a PPF lasts up to 15 years. Investors can also opt-in for extending the tenure of their PPF plan for another 5 years.
- Investing in a public provident fund can yield you an interest rate of up to 7.1%*, subject to changes.
- The minimum investment in PPF starts from ₹500 and the maximum investment limit would be ₹1.5 Lakhs.
- Investors can opt in for a premature withdrawal only after the tenure has crossed 5 years of the investment period.
*Interest rates are subject to changes and government regulations.
Whom is it best suited for?
Investing in a PPF can be a perfect addition to your investment portfolio if you are an early investor planning to retire with a lump sum amount as your retirement savings.
How to apply?
Public Provident Fund Plan is available in both banks and post offices for investors to invest in. One can visit their nearby branch and apply for the same.
Recurring Deposits
One of the investment plans for investors who would like to invest a fixed amount regularly (usually monthly) to build savings over time.
Level of Risk: Low Risk Investment
Features:
- The tenure of recurring deposits can range from 6 months to 10 years.
- Investing in a recurring deposit can yield interest lower than an FD, but an RD allows you to invest funds in a recurring method instead of a lump sum.
- One can avail a loan against their recurring deposit in the event of unplanned financial needs.
*Interest rates are subject to change and check the latest rates before making a decision.
Whom is it best suited for?
Recurring deposits are ideal for investors who have a regular source of income and would like to invest a part of their income that would help them save up a lump sum at the time of maturity.
Senior Citizen Savings Scheme
Senior Citizen Savings Scheme is a government-backed savings scheme designed for senior citizens.
Level of Risk: Low Risk Investment
Features:
- The minimum amount required to start the scheme is ₹1,000, and the maximum limit would be ₹30 lakh (as per updated rules), subject to applicable government regulations.
- Senior Citizen Savings Scheme can yield investors an interest rate in the range of 8%* p.a.
- The tenure period would be 5 years and it can be extended up to a time period of 3 years upon maturity.
- Senior Citizen Savings Scheme provides tax benefits under the Section 80C of the Income Tax Act. This plan also provides the option of premature withdrawal which would be subjected to nominal penalty based on the point of time at which one chooses to opt for premature withdrawal.
*Interest rates are subject to change and check the latest rates before making a decision.
Whom is it best suited for?
Senior Citizen Savings Scheme is an ideal choice for Senior Citizens who would like to enjoy a regular interest income.
How to apply?
Senior citizens can apply for the Senior Citizen Savings Scheme through post office or banks.
Pradhan Mantri Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana is a government pension programme, specially curated for Senior Citizens.
Level of Risk: Low Risk Investment
Features:
- Investors can gain an interest rate of approximately 7%* as Return on Investment.
- The tenure of investment is 10 years and the interest rate is fixed at the beginning of the tenure and remains the same throughout the plan.
- Investors can invest a maximum sum of up to ₹15 Lakhs.
*Interest rates are subject to change and check the latest rates before making a decision.
Whom is it best suited for?
Pradhan Mantri Vaya Vandana Yojana is ideal for Senior Citizens who are looking for a regular pension income and are ready to make a long-term investment.
How to apply?
Senior Citizens can apply for the Pradhan Mantri Vaya Vandana Yojana offline from the nearest office or apply online through the website.
Invest Now and Enjoy Profitable Returns
It is always better to be proactive and plan your future ahead. Build a financial portfolio that can be a pillar of support during sudden financial needs. Every investment portfolio should have at least one low-risk investment plan as it could help you in times of sudden market fluctuations. Investing in Shriram Fixed Deposit can help in earning attractive returns along with reliable returns upon the maturity of your plan.
Key Highlights
- Having a diverse investment portfolio with different asset classes may help manage financial risks.
- Investors with regular income can consider investing in a recurring deposit to build savings gradually.
- Senior Citizen Savings Scheme is a government-backed savings option designed for senior citizens.
- Fixed deposits offer predetermined interest rates for the selected tenure.
FAQs
Which reliable investment yields the highest return?
Returns vary depending on the investment type, tenure, and prevailing interest rates. Typically, FDs offer reliable returns compared to market-linked investments.
Which risk-free investment is the best in India?
Government-backed schemes such as PPF and Senior Citizen Savings Scheme are commonly considered relatively stable savings options. Investors should choose based on their financial goals and investment horizon.
How can I invest without any risk?
All investment options come with some level of risk. However, by doing a proper research and by investing in reputed financial institutions, you can minimise and reduce the risk quotient.
Which FD offers the attractive returns?
Shriram Finance offers Fixed Deposit with interest rate up to 8.15%* p.a., inclusive of 0.50%* p.a. for senior citizens and 0.05%* p.a. for women depositors.