If you are a low-risk investor seeking reliable returns with little to no volatility risks, you can choose from the following best investment options in India:
Fixed deposit
You can invest a lump-sum corpus in FDs for flexible tenures ranging from 7 days to 10 years. During the investment tenure, you can earn interest at a fixed rate of around 6%–10% p.a.
The capital deposited in bank FDs is protected by a DICGC cover of up to ₹5 Lakhs, while the interest rate is fixed and remains unaffected by market fluctuations.
You can also consider investing in a Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns—up to 7.30% p.a.
PPF
PPF, or Public Provident Fund, is one of the best investment options in India for those seeking safe retirement planning plans. This government-back long-term savings scheme offers risk-free returns at a rate fixed by the Central Government that’s revised quarterly. It comes with a 15-year-long tenure, offering ample time for your investment to grow and compound.
Treasury bills
Treasury Bills (T-bills) are short-term money market instruments issued by the Government of India to meet its short-term funding needs. They are available in three maturity periods—91 days, 182 days, and 364 days.
Since they are backed by the government, T-bills carry minimal risk of default. However, in India, these are zero-coupon securities, meaning they do not offer periodic interest payouts. Instead, they are issued at a discount and redeemed at face value upon maturity, allowing investors to earn the difference as returns.
Senior Citizens Savings Scheme (SCSS)
The SCSS is a government-backed savings scheme designed to offer regular income to individuals aged 60 and above. For Q1 FY 2025–26, it offers an interest rate of 8.2% p.a., payable quarterly. It’s a secure option for retirees looking for stability.
National Pension Scheme (NPS)
The National Pension Scheme is a government-regulated retirement solution available to employees across public, private, and unorganised sectors in India. It allows you to invest in a mix of equity, corporate debt, and government bonds, based on your preferences and risk tolerance. A minimum annual contribution of Rs. 6,000 is required, with no upper cap on investments. NPS is designed to help you build a long-term retirement corpus with market-linked growth.