7 Safe investments: It’s true that the last few years have been a financial roller coaster. The market has had spectacular highs that resulted in years with record-breaking numbers of startup and IPO launches, as well as severe lows that wiped out thousands of crores of investor money. It is crucial to review your financial portfolio now when the market is so turbulent and to think about investing with low-risk but high-return techniques. You’ll be happy to learn that there are a number of low-risk, steady-return goods available for investment. Let’s examine several well-liked investment possibilities in depth and take into account their features, advantages, and other important characteristics.
7 Safe investments with high returns 2023
1. Deposits that are Fixed (FD)
Fixed Deposits are a well-known and well-liked investment strategy that many Indian investors adopt. You can invest your extra money for a set length of time and receive consistent returns, which are often offered by banks and NBFCs.
Benefits and Features
Many conventional investors prefer to save using FDs since the returns are fixed and guaranteed1 by the bank/NBFC. The investment term and dividend frequency can be customized, making FDs a reasonably flexible financial tool. The earnings from FDs can be used as a constant income to handle regular living expenditures by choosing a monthly or quarterly payout. Most businesses provide senior individuals with a higher interest rate, which is handy and advantageous.
2. Deposits that are Fixed (FD)
Fixed Deposits are a well-known and well-liked investment strategy that many Indian investors adopt. You can invest your extra money for a set length of time and receive consistent returns, which are often offered by banks and NBFCs.
Benefits and Features
Many conventional investors prefer to save using FDs since the returns are fixed and guaranteed1 by the bank/NBFC. The investment term and dividend frequency can be customized, making FDs a reasonably flexible financial tool. The earnings from FDs can be used as a constant income to handle regular living expenditures by choosing a monthly or quarterly payout. Most businesses provide senior individuals with a higher interest rate, which is handy and advantageous.
3. Definition of Public Provident Fund (PPF)
The Public Provident Fund is a long-term investing strategy that enables you to continuously increase your wealth while assuming little risk. It is supported by the Indian government and is mostly utilized as a retirement planning tool.
Benefits and Features
While the PPF offers consistent rates to counteract overall inflation, they also give tax savings as an additional advantage. The amount paid each month is tax-deductible up to Rs. 1.5 lakh per year, and the interest received is not taxable. Additionally, it permits partial withdrawals, and you can even borrow up to 25% of the value of your PPF, with repayment due in three years. PPFs have a 15-year minimum term and a minimum investment requirement of Rs. 500.
4. Definition of the ABSLI Fixed Maturity Plan
A non-participating endowment plan, the ABSLI Fixed Maturity Plan provides guaranteed returns as a lump payment at maturity. A savings program that helps you earn lump sum benefits to realize all of your goals while also providing life insurance coverage and savings benefits to protect your family from financial hardship in the event of an unexpected event. a one-time payment plan that can help you develop your investment and achieve your objectives. It provides a set return and is unaffected by changes in the market.
Benefits and Features
- Guaranteed Maturity Benefit regardless of market conditions at maturity.
- Financial protection for your loved ones with thorough risk coverage in the event of an insured life’s death.
- a solitary premium payment
- Possibilities of gaining benefits from increased maturity
5. Definition of a Unit Linked Insurance Plan (ULIP)
A dual-purpose insurance plan, as its name suggests, is a ULIP. In addition to offering life insurance, these plans make market investments to provide larger returns.
Benefits and Features
You purchase two items when you pay the premium for a ULIP. Your life insurance premium is paid for in part, and the remaining sum is put into equity, debt, or hybrid funds. Benefits include the ability to pick the level of life insurance and the freedom to invest in a variety of funds. A tax benefit2 of up to Rs. 1.5 lakh per year paid as a premium is also available under Sec. 80C.
6. Definition of Post Office Monthly Income Scheme (POMIS)
The Indian Postal Service is the only provider of the investment program POMIS. It is a fixed-income monthly plan with reasonable yet guaranteed1 returns and minimal risks.
Benefits and Features
POMIS has a five-year maturity period. After a year, the money can be withdrawn at any time with a 1-2% early withdrawal fee. At the conclusion of the five years, money may be reinvested. The returns are taxable even though there isn’t any TDS. One person may have many POMIS accounts, and it is simple and cost-free to switch to any other post office.
7. Definition of the Senior Citizen Savings Scheme (SCSS)
An investing vehicle designed exclusively for Indian residents over 60 is called the Senior Citizen Savings Scheme. They have a low-risk factor and are well suited to achieving medium-term goals.
Benefits and Features
SCSS has a five-year maturity period with the option of an additional three years. Only deposits up to Rs. 15 lacks are permitted in this account. Premature withdrawal is permitted, however, there is a 1.5% fee attached to it. Tax deductions are available for deposits up to Rs. 1.5 lakh annually.
FAQ
Better might mean various things to various people. FDs can offer stable yields for shorter time periods, but they are not the best option for building long-term wealth. You can think about endowment plans and ULIPs for that. Additionally, they will offer the extra benefit of a life insurance policy to safeguard the financial future of your family.
Yes, investments in ULIPs are regarded as secure. You should carefully evaluate the various plans and look into the authenticity and reputation of the insurer to ensure safety and profitable investments.