Top 4 Safe Investments For You

If you are a conservative investor, you won’t prefer taking risks with your investments. A conservative investor prioritises the preservation of capital over market returns. If you are a conservative investor, you could take a look at these four safe investment options.

Public Provident Fund

The public provident fund or PPF is a government-administered scheme. It is one of the safest investment options and also helps save taxes. The PPF has a lock-in period of 15 years.

PPF currently offers an interest rate of 7.1%. Your investment in the PPF is eligible for the Section 80C tax deduction up to a maximum of Rs 1.5 lakh per year. The interest you earn and the amount withdrawn at maturity are tax-free. You can also get a loan against PPF balance.

Fixed Deposit

You may invest in a fixed deposit at a public or private sector bank. It is a safe investment where you earn interest on the principal amount deposited with the bank. The bank fixed deposit has a maturity period ranging from 7 days to a maximum of 10 years.

You can avail a loan against your fixed deposit. You also have the tax saving FD which has a compulsory lock-in period of 5 years. Your investment in the tax saving FD enjoys the Section 80C tax deduction up to a maximum of Rs 1.5 lakh per financial year. Banks offer senior citizens a higher rate of interest.

NSC

The National Saving Certificate or the NSC is a post office small saving scheme. You can invest a minimum amount of just Rs 1,000 and in multiples of Rs 100 thereof. NSC currently offers an interest rate of 6.8% for the October to December quarter.

Your investment in the NSC is eligible for a tax deduction under Section 80C. NSC has a lock-in period of five years. You may consider investing in the NSC if you are a conservative investor who seeks a government-backed investment.

Recurring Deposit

A recurring deposit allows you to make regular deposits and earn decent interest. It is a safe investment on similar lines as a fixed deposit. You may need to deposit a lump sum amount in a bank fixed deposit.

However, you can invest in a recurring deposit, even if you don’t have a lump sum amount.You may invest in the recurring deposit, with a minimum tenure of 6 months and a maximum tenure of 10 years.

You may consider investing in safe investments to protect your wealth. Some of these safe investments also offer you tax benefits.