Investors naturally seek safe and reliable options to protect their hard-earned money. Everyone wants to avoid unnecessary risks while growing their savings. For this purpose, most prefer investments that offer stability and security. These investment options are known as “safe investments”. They carry minimum default risk for both interest and capital.

If you are a conservative investor with a low-risk appetite, you should prefer investing in instruments that prioritise financial safety over capital growth. In this article, we have covered the top 6 safe investment options that can provide you peace of mind and steady returns. Let’s check them out.

• As a conservative investor, you can invest in safe investment options like savings accounts, post office schemes, PPFs, and FDs.
• These options carry low risk and offer non-market linked returns, often guaranteed.
• Investors can also prefer non-equity mutual funds as they invest in low-risk securities like government bonds.
• These mutual fund schemes provide stable returns without the volatility of equity markets.

A savings account is a basic service offered by every commercial bank. It allows customers to safely store their money while earning a small amount of interest. Usually, the interest rate on savings accounts is around 2.5% to 4%. These rates can vary depending on the bank.

This investment option offers low returns and is ideal if:

• You need easy access to your money and
• You make frequent withdrawals

Thus, a savings account is a good option if you’re looking for a secure place to keep your money with the ability to withdraw when needed. To enhance your returns, you can compare the interest rates offered by different banks and pick the best one.

Post office schemes in India are operated by the government and carry a sovereign guarantee. These safe investment options carry minimal default risk and even offer better returns compared to banks and Non-Banking Financial Companies (NBFCs). Some popular small savings schemes offered through the post office are:

• Post office term deposits
• Kisan Vikas Patra
• Monthly Income Scheme (MIS)
• Postal Life Insurance (PLI), and more.

However, unlike banks, most Post Office schemes lack online platforms or tracking systems. This means you need to visit a post office every time to manage your investments.

FDs are one of the most popular safe investment options in India. For decades, they have been the go-to choice for Indians seeking secure places to invest surplus funds. FDs are available at all major banks and offer guaranteed returns at the end of the deposit period.

They are ideal for conservative investors as:

• FDs are risk-free in nature
• The principal amount is safe
• The returns are guaranteed

It is worth mentioning that FDs are not linked to market fluctuations and provide fixed interest calculated at a pre-determined interest rate.

You can consider investing 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 8.60% p.a.

RDs work similarly to FDs. However, with this option, you can deposit a fixed amount regularly (often monthly) instead of making a one-time lump sum. This makes RDs a safe investment option for people who want to build savings gradually.

Like fixed deposits, RDs also offer guaranteed returns. Even the interest rate remains constant throughout the investment period. Later, when the RD matures, you receive the total amount you deposited, along with the interest earned over the investment term.

The Public Provident Fund (PPF) is a popular long-term savings option in India. It offers guaranteed returns along with tax benefits. This scheme is specifically designed to help individuals save for retirement. The PPF is backed by the government, which makes it a safe and reliable investment.

To start, you can open a PPF account at a bank or post office. Usually, it has a tenure of 15 years and you can even extend it if needed. Also, premature withdrawals are allowed under certain conditions.

Non-Equity Mutual Funds represent debt, gilt, or liquid funds. These mutual fund schemes focus on fixed-income securities and primarily invest in safe financial instruments like:

• Government bonds
• Debentures
• Gold bonds
• Corporate bonds, and more

These mutual funds are not linked to equities and carry a much lower risk compared to equity mutual funds. Hence, they are ideal for conservative investors looking to earn steady returns without exposure to the volatility of the stock market.