Investments are a priority in every individual’s financial journey. Due to the uncertainties in our lives, they have also become a keen focus of our attention. As a result, people, especially in the middle class, have been looking for different low-risk investments in India to invest their money and secure their financial future. But, they have a common aim: ‘guaranteed returns’. Investments are also based on the level of risk tolerance. Here, we will discuss nine options for risk-averse individuals.

• Fixed deposits and recurring deposit schemes: They are traditional yet secure investments for risk-averse individuals. In a fixed deposit scheme, you will have to make a lump-sum deposit for a fixed period. You will get the amount and the interest accrued on maturity. In a recurring deposit scheme, you deposit a small amount regularly for a certain number of years. On maturity, the principal and the interest are paid to the customer. Banks, post offices, and NBFCs offer fixed deposits and recurring deposits, while some large companies with a good standing offer only fixed deposits.
• Savings insurance plan: Life insurance companies in India have introduced the guaranteed return savings insurance plan. It offers dual benefits, insurance and guaranteed returns. Like any other life insurance plan, you will have to pay a premium amount regularly through the policy term. In case of your sudden demise, the sum assured will be provided by the insurer to your nominee. The guaranteed returns will be available when the plan matures. If the return of the premium option is included, as offered by TATA AIA life with its saving plans, you can get a refund of the premium amount paid if you outlive the policy term.

• Mutual Funds: If you prefer low-risk investments for market-linked returns, you can invest in the financial markets. In a mutual fund, an Asset Management Company will invest and manage your portfolio. Hence, it is extremely safe. Equity Linked Savings Scheme is one of the best mutual fund investments for tax benefits.

• Public Provident Fund: It is a government-backed savings plan. It is popular for ensuring long-term benefits. For a PPF account, you have to invest money regularly for 15 years. It can either be annual or monthly payments subject to a minimum of Rs 500 and a maximum of Rs 150000 per year. After that, you will receive the balance along with interest earned on maturity.

• National Pension scheme: It is one of the best low-risk investments for retirement benefits. You will have to invest a specific amount regularly for a fixed number of years in the pension account. It will be invested in securities, bonds and other financial instruments in the market. The account holders will get a lump sum amount on retirement and the remaining as regular pension payments.

• National Savings Certificate: It is a valuable government-backed savings plan offered by the Postal department. You can invest a specific amount regularly for 5 to 10 years. The minimum amount that can be invested is Rs 100. It is a reasonable option for guaranteed returns and tax benefits.

• Post Office Monthly Income Scheme: Resident Indian citizens holding an account with the post office can invest starting from a minimum of Rs 1500 in this scheme. The amount invested and the interest accrued will be provided by the post office on maturity.
• Senior Citizens Savings Scheme: It is a scheme introduced to benefit senior citizens to park their retirement funds. A minimum of Rs 1000 to a maximum of Rs. 15 lakhs can be deposited by the senior citizens with the post office for five years. It ensures tax benefits and guaranteed returns in the form of interest payments.
• Kisan Vikas Patra: It is a fixed-rate savings plan for risk-averse individuals. You can invest a minimum of Rs. 1000 and there is no upper limit. The tenure is generally 124 months and can be extended. However, the maturity value is guaranteed during the scheme inception.

Conclusion

A savings plan should be an integral part of your financial plan. Risk-averse people can choose an option from the different types of plans to invest as discussed above. However, if you are looking for a savings solution with insurance benefits, a guaranteed return plan will be ideal, as it offers life insurance with returns!