How to get highest returns with lowest risk?

As cost of living indices continue to rise consistently, it is important to start looking for sustainable investment avenues that ensure assured returns with low risk. With increasing market volatility, it is important to create a diversified investment portfolio that ensures higher returns with lower risks.

While there are several investment avenues that provide higher returns with lower risk, you can invest as per your goals, and look for options with lower risk of capital.

Here is a list of 7 low-risk investments with respectable returns:

High Interest Savings Accounts

With high-interest savings account, you can earn nominal amount of interest, on the deposit in your savings account. You need to open an account and deposit your money, but make sure you choose a good financial institution that offers competitive rates of interest at no additional fee.
It should also provide good customer service, online account management, and easy deposits. You can earn a respectable interest on your savings bank account in India, depending on your bank of choice.


If you wish to stabilize your portfolio over a long period of time, annuities are a good investment. However, it is important to consider the risks, since they are complicated financial instruments with a lot of clauses included in the contract.
There are many different annuities, but purchasing any one is similar to making a trade with an insurance company. In return for a lump sum amount, you receive a stated rate of guaranteed returns. Based on type of pension amounts offered, annuities can be:
• Fixed
• Variable
• Equity indexed
Fixed annuities provide fixed returns, which translates to lower risk. Your annuities are backed by the insurance company, and are usually safe, despite being complex financial products.

Money Market Funds

A money market fund is a type of mutual fund designed for those who do not wish to lose their investment principal. It usually pays a little interest in addition to making your cash deposit in the fund worthwhile. These funds have a strong history of protecting the value of your cash. Market fluctuations have little to no effect on them, so you do not have to be concerned about losing your principal.

Municipal Bonds

municipal bond is a debt instrument issued by urban local bodies that promises to repay a fixed principal amount with interest periodically, which may be paid at fixed intervals or at the end of the tenor, with the principal. Investing in such municipal bonds is generally very safe, since the likelihood of municipality bankruptcy is very low.

Certificate of Deposit

You can get a Certificate of Deposit from commercial banks and some financial institutions. However, you would need to deposit a minimum amount of Rs. 1 lakh for a set period of time and receive guaranteed returns in exchange. A Certificate of Deposit ensures you get a fixed interest rate for that time period regardless of interest rates. However, you have to pay a penalty if you wish to retrieve your funds ahead of time.

The government guarantees that you will not suffer a loss, while the financial institution offers additional interest. This is determined by the length of your Certificate of Deposit and current interest rates.

Treasury Bills

These instruments offer short-term investment opportunities, usually up to 1 year. The Government of India offers three types of treasury bills through auctions—91-day, 182-day, and 364-day. The minimum amount for investment is Rs. 25,000, and the amount increases in multiples of Rs. 25, 000. They are associated with zero risk because of issuance by the government, and you can opt for one electronically from the Negotiated Dealing System (NDS).

Fixed Deposits

These are one of the safest investments to make, and provide a respectable rate of return if you compare them with most other low-risk investments. Investing in fixed deposit from well-reputed financiers provides additional advantages, like flexibility, periodic interest payouts, high stability and credibility.

  • Financiers like Bajaj Finance Fixed Deposit offer attractive  , and you can also take a loan against fixed deposit for emergencies.
  • If you’re looking to invest in a low-risk instrument, Bajaj Finance offers FD (Fixed Deposits) with one of the highest interest rates in the country, and CRISIL’s FAAA/Stable Rating, making it ideal for achieving a balance between risk and reward.