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Top 6 Safe Ways To Invest Your Money in India?



Sept 19, 2022

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Top 6 Safe Ways To Invest Your Money in India?

Investment have never been easy as it requires an individual to consider several aspects. Considering the unavoidable factors and expert advice can not only help you earn better returns but also help you accomplish your financial aims in your life.
The early you start investing the sooner you can create the wealth for your varied needs. There are many investment instruments available in the market. Some of them are classified in secured investment options and others into unsecured category of investment. The choice to invest in secure or unsecure investment avenues depends on your personal choice.

About the Safe investing Options/Plans in India

For the people who do not wish to take risk can choose to park their money in fixed income securities in India that are known to provide fixed return and works as an additional source of income for a family. There are many ways to invest your money to enjoy stable income. Let us here talk about the same.
You can opt from the many short-term and long-term investment plans or options based on your need for the investment. It is recommended to consider diversifying your portfolio to maximize your returns and manage efficiently the potential risks.

Below are the Top 9 Safe Ways to Invest Your Money


More About the Options to Invest Your Money

These options are known to offer relatively better features and provide competitive advantages. You need to stay alert, expand your personal understanding and if required seek expert guidance for better investment plans and investment decisions.
Let us here discuss in brief about the 6 popular and safe ways to invest your hard-earned money in India.
Bonds in India is one of the popular medium for government and private entities to raise fund from the market direct from the investors. Here the borrower instead of seeking loan from banks and financial institutions gets the required money from the market by issuing bonds with a minimum face value of Rs. 1000. Investors buy bonds according to their capacity and in exchange gets the guarantee of return of capital termed as face value and fixed interest termed as coupon in bonds. There are many good features and advantages that makes bonds a preferred investment instrument. You can choose to buy bonds classified in different types on the basis of their features, risks, exit options and other factors. Bonds comes in the fixed income securities and is known to provide higher returns along with safety features.
Bonds are a good source for organisations and investors. For bond issuer it is the medium to raise funds and for bondholders it is the option to earn income with safety of invested capital money. The popular bond types are – government bonds, corporate bonds, green bonds, zero coupon bonds, perpetual bonds, and more. It is primarily classified in secured bonds and unsecured bonds.
Today, the retail investors can visit online and buy corporate bonds and other bonds online in minutes. Bondsindia.com and other online platforms offer the hassle-free option to trade in bonds.
2. Fixed Deposits (FD)
Fixed Deposits (FD) in India have been the prime choice of the investors specifically in the retail segment. The common people because of lack of knowledge do not think beyond bank FDs. The fixed deposits are facilitated by private, public-sector banks, and NBFCs like Life Insurance Corporation of India and other financial institutions. FDs is the preferred choice of people looking for the guaranteed returns and less risk. The rate of interest varies from bank to bank. The amount to invest and the maturity period can be chosen based on your convenience.
Why choose fixed deposits to invest your money?
  • Low investment starting with a minimum of Rs. 5000
  • Low risk
  • Capital protection assured up to 5 lakhs through insurance
  • Guaranteed annual returns
  • Option to open FD in a bank or with NBFCs
  • Flexibility in terms of investment amount and maturity
  • Easy process and loan facility against your FD
  • Early exit in case of emergency
  • Your decision to go for the investing in FDs can help you earn a fixed interest and fulfil some of your short-term financial needs.
    3. Mutual Funds
    Mutual fund can be a good option for you in case you make informed decisions. It is better to educate yourself about mutual funds and then go ahead with your investments, you can invest in it through investment companies also. Investment in mutual funds is subject to market risk and hence you need to evaluate the potential risk and reward before investing in it. Your act of responsible decision will help you reap the fruit of your investment decisions. Creating your portfolio and diversifying it can help you enjoy more advantages of returns. No matter whether you are going for a long-term or short-term investment make sure you choose the right and safe ways to earn return on your investment.
    Advantages of Mutual Funds
  • Convenient and low costs for investing
  • Professional portfolio management at a low fee
  • Reduced risk through diversification
  • Dividend earned reinvested for your investment growth
  • 4. Direct Equity
    In a direct equity an investor gets directly a company share from the stock market. The investor as an equity holder of the company gets many rights and enjoy dividend as the return on investment. Direct Equity has the potential to bring in higher return to an investor in comparison to other investment options.
    Investment options can be profitable, less risky, or risky. The important thing is to take into consideration the key essentials like if your interest is in long-term or short-term, capital security, more interest, liquidity, etc. Direct equity is good for those interested in long-term investment.
    5. Post Office Saving Schemes
    India post in the country has made the facility of the Post Office Saving Schemes and is controlled by it. It was introduced with a purpose to develop in the common people the habit of regular saving along with advantages like interest, return of principal, and exit options.
    The easy enrolment and process makes its one of the most attractive investment avenues. You can visit your nearest post office and get your investment done in the Post Office Saving Schemes. There are many saving schemes offered by post office.
    A few of the popular Saving schemes include:
  • Post Office Time Deposit Account (TD)
  • 5-year Recurring Deposit Account (RD)
  • Post Office Savings Account
  • Monthly Income Scheme Account (MIS)
  • 6. National Pension System (NPS)
    Choosing the investment option yielding good return and guaranteeing security of the capital is not an easy task. It needs you to make research, gather information, and seek expert advice. Your efforts will help you reap the fruit of your hardship and right investment choice. The National Pension System (NPS) was introduced with the aim of replacing the pension schemes for employees of State and Central Government.
    This National Pension System from May 1, 2009 onwards were made available in India for the entire citizens. NPS investments can be made into two accounts – Tier 1 account and Tier 2 are the two accounts for citizens to go for the NPS investments. The present applicable rules have made NPS Tier 1 account mandatory and is known to provides tax benefits. The Tier 2 NPS account is not mandatory and do not provide the benefit if tax. There are many features and advantages that make NPS one of the top options for investment in 2022.
    Below are the key features and advantages of National Pension System (NPS):
  • Long-term option for the investment to provide post retirement financial security
  • Flexible to choose Rs. 500 annually as the initial investment amount
  • It gives the option to choose your preferred investment options that include Government Bonds, Equity, Debt, etc.
  • Flexibility to do partial withdrawal in the situation of medical or any kind of financial emergency
  • The advantage of multiple Tax benefits. You can avail the benefit of tax under Section 80C & Section 80 CCD (1B)
  • The above detailed options will help you make an exclusive choice and invest wisely. The investment options in the market are for the different category of the users. The risk-averse investors can choose to make investment in the fixed income securities.
    Always make investment considering your different need for the investments. The financial market is volatile and hence it is necessary to make smart investment decision. Your decision made in haste can results in several unwanted consequences.

    The Best Investment Choices - Frequently Asked Questions

    1. How to select the right investment option from the many choices in the market?
    No doubt, choosing the investment option is a daunting job. While you plan to go for the investment journey, take into due consideration your different goals in your life -short-term and long-term options for investment, features, advantages, level of risk, liquidity, and return.
    2. Name the top investment avenues available in India.
    The top investment avenues available in India include Bonds, Fixed Deposits, Public Provident Funds (PPF), National Pension Scheme (NPS), Post Office Saving Scheme, Mutual Funds, Direct Equity, Unit Linked Insurance Plans (ULIP), and Liquid Funds.
    3. How risky it is to invest in bonds?
    Bonds are considered a safe and secure investment avenue in the fixed income category. Unlike other options, bonds also carry certain risks. There different risks involved that you need to consider. The interest rate risk can be minimized by choosing to invest in bonds of the issuer having higher credit rating. The bonds with AAA ratings are considered safe. The government bonds have minimal risk.
    4. What are the advantages of investing in Bonds?
    Bonds give your many advantages. You can put your idle money to work for you. It will help you earn the ROI you expect. Some bonds in the corporate category are known to offer up to 15% interest. It can be a good option for investors willing to take risk. Bonds provide you the advantage of low initial investment of Rs. 1000 face value, flexibility to exit, comparatively high rate of interest, safety of your capital, fixed income, return at different intervals, and more.
    5. Which is the best investment avenue for higher rate of return?
    Every investment avenue has its pros and cons. The choice of investment should be made after taking into consideration the vital factors and your purpose behind investing. If you check the prevailing market condition, inflation, and volatility you will find bonds the better investment avenue for higher rate of return. Many corporate bonds in India are offering the coupon ranging from 8 to 15% subject to your holding of the purchased bonds until maturity.
    6. Why Choose BondsIndia for the trade in bonds and other products?
    BondsIndia is an online platform providing great features and advantages. The website is user-friendly, search-friendly, SEO-friendly, and easy to access. Shortlisting bonds from the thousands of available bonds for the potential trade is hassle-free. BondsIndia is known for its secure, flexibility, and easy navigation.
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