Zero Risk Best Investments Plans In India 2023

In India, or anywhere else, there is no such thing as a zero-risk investment. There is always some risk associated with investments, and the return potential is closely associated with this risk. Despite this, some of the best investment plans are considered to be lower risk than others and are often called “low-risk investments.”

Government bonds, fixed deposits with banks and other financial institutions, and some types of mutual funds, such as debt funds, are common low-risk investments in India. The returns on these best investment plans are usually lower than on stocks and equity funds, which offer a higher return.

The following are some of the key features of low-risk investments in India:

Guaranteed Returns: 

Investments with low risks are often backed by a return guarantee, either from the government or the financial institution issuing the investment.

Capital Preservation: 

Over a long period of time, low-risk investments will provide relatively stable returns and preserve capital.

Low Volatility: 

Compared to stocks, low-risk investments have lower volatility and are less affected by changes in the market than high-risk investments.


Investing in low-risk assets allows investors to diversify their portfolios and spread their risk across a variety of assets.


A low-risk investment such as a fixed deposit or government bond may have high liquidity, which makes it easy to redeem or withdraw the invested capital.

Best low-risk options in India

It is always possible to lose money when investing, as all investments come with some risk. It is, however, possible to find some investments in India that are relatively low risk and have a good track record of producing steady returns. Some of these include:

Public Provident Fund (PPF): 

It is a government-backed savings program that offers a fixed rate of FD interest rates 2023 and tax advantages. The investment tenure is 15 years, and the government determines the interest rate, usually between 7-8%.

Fixed Deposits (FDs): 

Banks and other financial institutions offer fixed deposits, which pay a fixed rate of interest for a specified period. Because the government backs the investment, the interest rate is typically higher than that of a savings account.

National Pension System (NPS): 

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Tax benefits are available with this government-sponsored retirement savings plan, as well as the option to invest in equity, debt, and government bonds. Due to its diversification across multiple asset classes, the investment is considered low risk because it is subject to market fluctuations.

Senior Citizen Savings Scheme (SCSS): 

A government-backed savings program for senior citizens that offers a fixed rate of interest and is considered a low-risk investment.

Bank Recurring Deposits (RDs): 

An example of a bank’s recurring deposit (RD) is: to fixed deposit, but instead of making a lump-sum investment, you make regular contributions. Due to the government’s backing, this investment is considered low-risk and offers the same FD interest rates 2023 as fixed deposits.

Government Bonds: 

Sovereign bonds, also known as government bonds, are government investments that offer a fixed rate of return. Because the government backs the investment, it is considered low risk, but the returns are lower than those from stock investments.

Life Insurance Policies: 

Certain types of life insurance policies combine insurance coverage and investment options, such as endowment and money-back policies. These policies typically offer lower returns than other investment options, but they are considered low risk because insurance companies back them.

Unit Linked Insurance Plans (ULIPs): 

Insurance plans linked to unit price policy provide life insurance coverage and allow you to invest in a portfolio of stocks, bonds, and other securities. Due to its diversification across multiple asset classes, the investment is considered low risk even though its returns are subject to market fluctuations.

National Savings Certificate (NSC): 

An interest-bearing savings scheme is sponsored by the government, known as the National Savings Certificate. Because the government backs the investment, it is considered low risk. Its returns are also tax-free.

Post Office Monthly Income Scheme (POMIS): 

The POMIS savings scheme is a government-sponsored investment option that offers a fixed, low-risk rate of interest. There is a 5-year investment tenure, and the government determines the interest rate,which usually ranges from 6 to 7%.

Corporate Fixed Deposits: 

A non-banking financial company or other corporate entity may offer a corporate fixed deposit. Since the government does not back these deposits, interest rates on these deposits are typically higher than those on bank-fixed deposits. Research the financial health and stability of the company thoroughly before investing in corporate fixed deposits.

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