Investment Tips: These 5 risk-free options are the best for investors...

A good portfolio is always considered to be one that includes both safe and risky investment platforms. By diversifying your portfolio, you can minimize risk.  Investments that minimize panic during market fluctuations are often considered the best. If you are also afraid of market risks, then invest in schemes like PPF, FD, NSC, SCSS, and NPS, which will protect you from market volatility. These schemes can give returns of around 7-8.5%, but which scheme is best for you? What is the minimum investment? What are the tax benefits? What is the lock-in period? In this article, we will explain these 5 top schemes in simple terms so that you can invest smartly without worrying about market fluctuations.

Why is a safe investment important?

The market has been showing significant ups and downs for quite some time.
In such times, people are turning to schemes with low risk and guaranteed returns.
Government and RBI-backed schemes are considered the safest. Add Zee Business as a Preferred Source

1. Public Provident Fund (PPF)

A long-term scheme fully guaranteed by the government
Investment period: 15 years
Minimum investment ₹500, maximum ₹1.5 lakh annually
The current interest rate is over 7%
Interest and maturity are completely tax-free
Best for salaried individuals and those planning for retirement
Partial withdrawal facility available after 7 years

2. Fixed Deposit (FD)

The easiest and most popular safe investment
Banks offer FDs for 1 to 5 years
Interest rate is approximately 6.5% to 7.5% (rates are subject to change)
Extra returns for senior citizens
80C deduction on 5-year tax-saving FDs
Deposits up to ₹5 lakh are insured
Loans are also available against FDs if needed

3. National Savings Certificate (NSC)
A reliable scheme from the Post Office
Lock-in period of 5 years
Minimum investment ₹100
Interest rate approximately 7.7%
Benefit of tax exemption under 80C
Great option for children and small investors
Completely insulated from market fluctuations

4. Senior Citizen Savings Scheme (SCSS)
Specifically for people above 60 years of age
Maximum investment ₹30 lakh
Interest rate over 8%
Interest paid every quarter
Lock-in period of 5 years, extendable by 3 years
A strong support for a regular income after retirement

5. National Pension System (NPS)
A long-term scheme for retirement
Minimum annual investment of ₹1,000
Balanced allocation between debt and equity
Additional tax exemption of ₹50,000 besides 80C
Pension and a lump sum amount received at age 60
Available for both government and private sector employees

How to start investing? Visit your nearest bank or post office
Complete KYC with Aadhaar and PAN
Online investment is also possible through bank apps or government portals
Tax benefits of these schemes
Tax exemption under Section 80C on all schemes
PPF and NSC are completely tax-free
Interest on FD and SCSS is taxable
Opportunity for additional tax savings in NPS

Safe investments mean a secure future.
When the market is volatile, safe investments provide the strongest support
PPF, FD, NSC, SCSS, and NPS are schemes that offer low risk and high reliability

Choose a scheme according to your age, target, and needs
Start investing today, and you'll have less financial stress tomorrow. (Note: This article is for informational purposes only and should not be considered as investment advice. It is suggested to consult financial advisors for investment advice.)

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.