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Top 4 Low-Risk Investment Options

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Low-Risk Investment

There are a bunch of investment options out there in the market. Depending on your needs and risk appetite you can make the most of these instruments. If you are someone who does not want to take a lot of risks, low risk investment options are ideal for you.

These investment options help your money grow without you having to worry constantly about the market conditions. You can use these options to park some additional funds or if you are close to retirement and do not want to take a lot of risks. Here are the top 4 low risk investment options for you.

  • Government Securities Fund:

    A government security fund is one of the safest options when it comes to low risk investment options. They are virtually risk free since they are backed by the government. Your investments in government securities funds are usually held till maturity and they have a longer tenure. 

    Though you have the option to cash out and liquidate your funds when you want to. Government securities funds offer better tax-saving options than some of the other debt investment options. These funds are also available in the form of Gilt mutual funds, which are issued by the Reserve Bank of India. 

  • Post Office Schemes:

    The Post Office offers a monthly income scheme which is another amazing low risk investment option. These schemes offer higher interest rates and the option of monthly pay out. However, your investment will have a lock-in period of 5 years and you can only invest up to INR 4.5 lakhs per individual. However, the investment in post office schemes is relatively no risk and the monthly payments are on time as well.

  • Liquid Mutual Fund:

    A liquid mutual fund is another great low risk investment option. It is a sub type of debt fund and primarily invests in government securities, treasury bills, commercial paper, etc. A liquid mutual fund is ideal for short term investments. They usually have a maturity period of 3-6 months. 

    These funds do not have any sort of locking period, thereby letting you withdraw your funds whenever you want to. And these funds do not have any sort of exit loads when you redeem your units. 

  • Gold:

    Another gold standard in low risk investment is gold itself. It has been a favourite with investors for a long time now and for good reasons as well. Gold prices are usually not impacted by fluctuations in the market. Also, gold corrects its price relatively sooner than some other investment options. 

    There is a lot of flexibility if you want to invest in gold as well. You no longer need to invest in gold only physically. You can now invest via gold ETFs, gold mutual funds, gold sovereign bonds, among others. A lot of investors add gold to their portfolio to diversify it and hedge their investments.

The above is some of the best low risk investments that you can consider to park your money in. It is ideal for people with a lower risk appetite.

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