Top Low-Risk Investment Plans for Beginners

Top Low-Risk Investment Plans for Beginners

If you want to invest in low-risk investment plans, you can do so independently through Jio Insurance Broking. Check out their details to make an informed decision:

Fixed Deposits

By offering a higher interest rate than regular savings accounts, fixed deposit schemes consistently attract the attention of risk-averse investors. It is important to note that these schemes lock your money for a predetermined term, earning monthly interest based on the amount you deposit and the duration you keep your funds in the scheme.

However, interest rates can vary from bank to bank, which is why investors should conduct their research before selecting a financial institution. FDs represent a one-time investment with minimal risk.

Life Insurance

With life being so unpredictable, having a life insurance plan is nothing less than a strong foundation for all your financial plans. It is a secure investment option that everyone should consider, regardless of whether you are a seasoned or a beginner investor. Insurance companies often offer a variety of plans that help you build a safe corpus while also offering life coverage. Depending on your personal needs, you can opt for:

• Endowment plans
• Unit Linked Insurance Plans (ULIPs)
• Money Back Plans
• Child Plans.

Public Provident Fund

Consider investing in the Public Provident Fund (PPF), a government-backed scheme that allows you to invest an amount ranging from ₹500 to ₹1.5 lakh rupees each year.

Additionally, PPF investors can benefit from full tax exemption under Section 80C of the Income Tax Act, 1961. With a compound interest rate of 7.1% (for Q3 of FY 2024-25), the PPF offers assured returns and is a popular choice for those seeking to accumulate wealth in a safer manner.

National Savings Certificate

Available at post offices and banks for the general public, the National Savings Certificate is a government-backed fixed-income investment scheme. It comes with a 5-year lock-in period, which provides interest when your scheme reaches its maturity date. Also, it gives you the advantage of tax deductions of up to ₹1.5 lakh on the principal invested under Section 80C.

Gold

Another safe investment option that not just traditional but new-age investors also prefer is gold. You can choose to invest in gold in various ways other than physical gold, including digital gold, gold ETF, or sovereign gold. Since the gold prices typically do not experience a sharp decline despite volatility in the market, it can often help you accumulate wealth at a faster rate.

Post Office Monthly Income Schemes

Visit your local post office and invest in a post office monthly income scheme for a modest and stable return. A single person, a joint holder, or a guardian of a minor or an incompetent person can choose to invest in any of the schemes. There are several options that you can explore, some of them are:

• National Savings Time Deposit Account
• Senior Citizens Savings Scheme Account
• Sukanya Samriddhi Account
• Kisan Vikas Patra.

Conclusion

Although market-linked investment plans are a popular way of growing wealth, they can put your hard-earned money at a certain level of risk. Low-risk investment plans, on the other hand, offer a steady and secure way to grow your money without the roller coaster ride of high-volatility options.

Choosing a low-risk investment plan is a prudent decision, especially for beginners and those with limited knowledge of stocks or investment options. Therefore, consider investing in the low-risk schemes described here and grow your wealth. As you gain more insight, you can slowly grow your portfolio and include other financial instruments in it, too.