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Risk Free Investment Option Available In India

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4 Risk Free Investment Option In India – Zero Risk Investment Idea

Managing your money in the aftermath of the world’s worst pandemic in a century requires careful consideration of both your immediate and future needs. You might not be able to deposit all of your hard-earned money in basic investment options like bank savings account in 2021 and expect a decent return. To assure that you are equipped for the numerous crises and situations, and difficulties that may arise, you may need to take a risk-based approach that protects your portfolio from unexpected financial shocks. To assist you in building a well-balanced financial portfolio, we’ve studied investment possibilities and split them into risk categories.

Here are a few of the highest zero risk investing alternatives to think about.

PPF stands for Public Provident Fund (PPF)

Because the government guarantees the returns, this government-backed fixed income plan can be considered a risk-free investment.
It has the following features:

  • Availability
  • Almost all Indian banks and post offices have it.
  • There is a boundary of one account per person.
  • There is no upper age limit for opening an account. Until the age of 18, a minor’s account is managed by their guardian.
  • Amount Invested
  • The minimum annual investment is INR 500.
  • The maximum sum per year is INR 1.5 lakh.
  • You can deposit anywhere from one to twelve times in a given fiscal year.
  • Investment Return on Investment
  • The current annual interest rate is 7.10 percent.
  • Interest rates on PPFs are variable, which means they could alter every quarter.

Certificate of National Savings (NSC)

  • The NSC is a government-backed fixed-income investment strategy viewed as a risk-free investment.
  • Availability
  • The certificate is widely available in India’s public banks, private banks, and post offices.
  • Amount Invested
  • It is necessary to deposit a minimum of INR 1000.
  • You can invest any sum in a multiple of 100 in 12 installments over a financial year or make a single contribution.
  • There is no limit to the amount of money that can be invested.
  • Investment Return on Investment
  • The rate of interest compounding is released by the Ministry of Finance every quarter.
  • At the end of the maturity period, interest is paid.
  • Maturity
  • NSC has a five-year lock-in duration.

Mutual Funds that invest in stocks

An equity mutual fund is an investment instrument that gathers money from investors and invests its inequities in producing profits.

  • Availability
  • You can easily invest online or offline through SEBI-authorized persons, agencies, and stock brokerage firms.
  • Amount Invested
  • The majority of mutual funds need a minimum commitment of INR 1000, with no limit on the total amount invested.
  • You’ll need a Demat account and a trading account to invest in equity mutual funds.
  • Investors can choose from eight different types of equity mutual funds.
  • You can also invest in growth mutual funds, which are equity mutual funds. This can be accomplished without the need for a Demat account.
  • Maturity

Exchange Traded Funds (ETFs) in Gold (ETFs)

Gold ETFs are the same as buying gold in its physical form but without the trouble of having to store it. Investors must open a Demat account and hold gold units in a dematerialized format, similar to how mutual fund units are maintained.

  • Availability
  • You can buy gold units by opening a Demat account in the same way you can invest in stocks through SEBI-registered stock brokerage firms and agencies.
  • If you don’t have a Demat account, you can invest in gold funds offered by some banks or several gold ETF funds.
  • Investment Return on Investment
  • ETFs can be traded on stock exchanges in the same way that equity mutual funds can. As a result, their return is determined by the performance of gold ETFs on the market.
  • Taxation: You will be taxed according to your tax bracket if you sell your gold ETF within 36 months after purchasing it. It will be taxed like any other long-term capital gain after 36 months: 20% of the profits plus a 4% cess.
  • Medium to the high level of risk

Conclusion

Putting your money into financial instruments that could help you earn a profit comes with its own set of hazards. It is advisable to understand and learn as much as attainable about the potential risks associated with the product you are investing in before making a decision. The best and risk-free options in India are mentioned above, and you should invest in such platforms.

Best Short Term Investment Plan | Post Office Saving Investment | Investment Idea 2022 | How To Plan Your Investment | Sip & Lumpsum Investment | Risk Free Investment | Best Short-Term Investment

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