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In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Kotak e-Invest
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Ref. No. KLI/22-23/E-BB/492
Looking for safe investments with high returns in India? You are not alone as everyone wants to grow their money without taking too much risk. Thankfully, India offers several safe investment options that provide stability and good returns over time. If you are a conservative investor or simply starting your financial journey, this guide will help you choose the best safe investment in India based on your needs. Let us explore further.
Safe investments are financial options that offer stable and predictable returns with minimal risk. These options are usually backed by the government or reputable financial institutions, ensuring your principal amount remains secure while earning steady returns. The goal is to balance security and profitability so your money grows without sleepless nights!
They are ideal for cautious investors who prioritize protecting their money over chasing high profits. While the returns may not be very high, these investments ensure that your principal amount remains secure.
Simply put, safe investments focus on reducing risk while allowing steady growth over time. Whether you are saving for your child’s education, planning for retirement, or building an emergency fund, these options help you achieve your financial goals without exposing you to major losses.
Investing your money in safe investment plan is very important if you want to secure your future while ensuring steady returns. If you are looking for low-risk options that protect your capital and provide reliable growth, here are some of the safe investments with high returns in India:
Fixed Deposits or FDs, are low-risk investment schemes that can help you build wealth in the long run. Typically, you can choose between bank FDs and company FDs, as some of them offer income tax benefits, too. While FDs may seem simple, you must consider three important things before investing:
This type of investment is generally preferred by conservative investors with long-term goals. The scheme has been initiated by the government of India to encourage savings among people living in rural and semi-urban areas and, in turn, strengthen the economic growth of the country. Various schemes offered by the post office are:
An endowment plan is a life insurance policy that offers life coverage along with the option to save regularly over a specific period of time. So, if you are planning to buy a house, save money for your children’s education, or if you are planning for an early retirement, an endowment plan can be your savior. One of the safe investment options in India, an endowment plan provides maturity benefits and a disciplined route for savings, which would be handy in case of a financial crisis.
Unit Linked Insurance Plans or ULIPs, are hybrid investment instruments that offer a combination of protection and saving. Besides providing risk cover, they also allow the policyholder to invest in various market-linked products and meet long-term goals. Here, you also have the option to switch between different investment funds to match your needs. As is the case with most insurance policies, the premium paid for the upkeep of your ULIP is exempt from tax under Section 80C of the Income Tax Act, 1961.
Just like FDs, bonds are considered to be safe investments with high returns in India. Both bonds and FDs work in the same way, except certain bonds can be traded in the secondary market, which automatically makes them liquid. Given the similarities, it is recommended to assess bonds in the same manner as FDs, before investing.
Bond funds, or debt funds, are funds that invest in fixed income securities such as government bonds, corporate bonds, money market instruments etc. They come with greater flexibility, more variety, and higher liquidity. They also hold better tax benefits as compared to bonds.
PPF is a government-backed, long-term savings scheme that comes with a lock-in period of 15 years. It offers attractive interest rates, compounded annually, and tax-free returns. In this scheme, partial withdrawals are allowed after six years, adding flexibility. With tax benefits under Section 80C and complete security, PPF is a great option for your retirement planning or wealth accumulation.
NSC is a government-backed fixed-income investment with a 5-year lock-in period. It offers fixed interest rates and qualifies for tax deduction under Section 80C. Since the investment is fully secured, NSCs are a great option for people who are seeking stable returns with minimal risk. Additionally, they can be used as collateral for loans, adding financial flexibility.
Debt mutual funds invest in fixed-income securities like government bonds, treasury bills, and corporate bonds. They offer moderate returns with lower risk compared to equity funds. Debt funds are tax-efficient for long-term investors and provide liquidity, making them ideal for those seeking a balance between safety and growth.
Gold has always been a preferred investment in India. Apart from physical gold, investors can choose Gold ETFs (Exchange Traded Funds) and Sovereign Gold Bonds (SGBs) for better security and ease of investment. SGBs also offer interest income, making them a practical choice. Gold investments help preserve wealth and act as a hedge against inflation.
Designed for individuals aged 60 and above, SCSS provides a safe and regular income source after retirement. It offers higher interest rates compared to regular FDs and pays interest quarterly. With a 5-year lock-in period (extendable by three years) and tax benefits under Section 80C, SCSS is a reliable choice for retirees seeking financial stability.
RDs are a disciplined savings option where you deposit a fixed amount monthly for a chosen tenure. They offer assured returns with predetermined interest rates and are ideal for building savings gradually. RDs are available with banks and post offices and allow premature withdrawals with a penalty. They are perfect for individuals looking for low-risk, structured savings.
Generally, all these plans offer safe investments with high returns and also hold some of the best saving options available in the market. However, before choosing any type of tax saver, you need to consider several factors like liquidity, safety and returns. This will help you build wealth and allow you to multiply your savings in a short span of time.
Investing in safe options is key to financial stability. While FDs and PPFs are the most popular, savings bonds, gold, and post-office schemes offer additional security. To find the best plan for yourself, you must choose an option based on your financial goals, risk tolerance, and investment horizon. Make sure to stay consistent and disciplined as this will help you grow your wealth while ensuring peace of mind!
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Some of the safe investments with high returns in India include the Public Provident Fund (PPF), Fixed Deposits (FDs), Sukanya Samriddhi Yojana (SSY), and Government Bonds. These offer stability with guaranteed or predictable returns.
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No investment is 100% risk-free, but Fixed Deposits (FDs), PPFs, and government-backed schemes are among the safest options. They have low risk and guaranteed returns, making them ideal for conservative investors.
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Investments like FDs, PPFs, and sovereign gold bonds carry the lowest risk as they are backed by the government or banks. They offer steady but moderate returns as compared to riskier market-linked investments.
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To minimize your investment risk, you should diversify your portfolio by investing in a mix of low-risk and high-return investment options. Opt for long-term investment plans, avoid emotional or rash decisions, and regularly review your investments to stay on track.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Kotak e-Invest
Features
Ref. No. KLI/22-23/E-BB/521
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
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