6 Best Low-Risk Investment Options In India 2025

Real wealth does not just mean money; it also implies freedom—the freedom to work or not to work and still enjoy life to the fullest. To achieve this, you must invest your money to make it work for you and generate more income.

With an increased focus on wealth creation and well-being, several investment options in India must include traditional and alternative ones. These could include insurance-cum-investment products, fixed deposits, gold and other precious metals, stock market investments, mutual funds, real estate deals including land, various types of bonds, provident funds, cryptocurrencies, and alternative investments like startup equity, inventory financing, and asset leasing.

However, thorough research is essential when investing in traditional and alternative investment sources. Prospective buyers should carefully assess their risk tolerance and financial objectives. Investors can benefit from India's dynamic economy by monitoring developing trends and market dynamics.

Here is a list of the best, low-risk investment opportunities in India for 2025:

1. Public Provident Fund (PPF)

This government-backed fixed-income scheme is one of the best investment ideas in India, generating guaranteed returns. It is available at almost all Indian post offices and banks. Investments start as low as INR 500 annually, up to a maximum of INR 1.5 lacs.
You can deposit anywhere between 1 and 12 times in one financial year. Investments in PPF are tax-free, and the interest earned is tax-free, making it a good option for salaried individuals. Currently, PPF offers an interest rate of 7.1% compounded annually.

2. National Pension Scheme (NPS)

The National Pension System emerges as a compelling investment scheme for retirement planning. With a mix of equity, fixed deposits, and government funds, NPS provides diversified investment options. Its flexibility allows investors to choose their asset allocation, fostering a personalised approach.
NPS exhibits potential for substantial returns, especially for long-term investors, capitalising on market growth. It is a robust investment choice, combining flexibility, potential returns, and a secure regulatory framework. The 10-year returns of NPS for schemes E, C, and G have ranged from 10.45-10.86%, 10.05-10.68%, and 9.57-10.05%, respectively. 

Since NPS is a retirement saving instrument, the lock-in period is 60 years of age (with some exceptions), when the investor can withdraw a maximum of 60% of the corpus as lumpsum and a minimum of 40% of the corpus to purchase an annuity plan. 

3. National Savings Certificate (NSC)

Considered a risk-free investment, the NSC is another government-backed fixed-income investment scheme that can be bought from Indian public banks, some private banks, and all post offices.

A minimum investment amount of INR 1,000 is mandatory, with no limit on the maximum investment. You can invest any amount in multiple 100s, 12 instalments in one financial year, or the desired deposit at once. NSC has a lock-in period of five years. The interest rate offered by NSC was 7.7% in the December 2023 quarter.

4. Corporate Bonds

Corporate bonds are debt instruments companies issue to access additional capital for expansion and operations. These bonds are sold to investors, allowing them to earn fixed returns through periodic (monthly/quarterly/annual) interest payments. 

Corporate bonds are one of the most popular instruments among investors looking for higher returns (9-12% yield) than fixed deposits (FDs) with lower risk exposure than stocks. Investment grade bonds, i.e., those rated BBB or higher, have also shown a very healthy performance in India over the last 30 years.  

5. LoanX

LoanX is a unique investment opportunity that lets investors invest in a diverse pool of loans to diversify the risk. It is a SEBI-regulated, credit-rated, and exchange-listed fixed-income investment option.

Grip Invest offers LoanX opportunities at favourable risk-adjusted rewards. A rating agency individually rates each opportunity; past offerings have ranged from A+ to BB-, providing pre-tax returns from 12% to 15%.

6. InvoiceX

Individual investors can invest in InvoiceX by Grip Invest, the first-ever credit-rated, RBI-compliant, diversified version of invoice discounting. It enables them to take exposure simultaneously to a pool of hundreds of invoices and get predictable fixed returns. It offers up to 11-12% pre-tax returns for a 6-12 month tenure.

Conclusion

Investing is the best way to make your money grow. The sooner you do, the better you will reap the benefits of compounding. However, it is necessary to select the suitable investment options.

The good news is that many new-age investment opportunities are available today, offering predictable fixed income with risk-adjusted returns. Explore Grip Invest and stay updated on all relevant and best investment opportunities. 

Frequently Asked Questions On Low-Risk Investment Options

1. What are the best short-term investment options?

The best short-term investment options are: 

-InvoiceX

- LoanX

-Corporate Bonds

-Fixed Deposits

-National Saving Certificate

2. Is it the best time to invest in corporate bonds?

Yes. With interest rates peaking up, this is the best time to invest in corporate bonds and benefit from high yield to maturity.

3. What do you mean by liquidity?

Liquidity in finance refers to the ease with which a security or an asset can be converted into cash at market price. Investors should check the liquidity of an asset class before blocking their money.

4. What are some alternatives to mutual funds?

Securitised debt instruments, or SDIs, are new-age investment options that provide alternative investment opportunities to mutual funds. While mutual funds are subject to market volatility and do not offer fixed returns, SDIs like LeaseX, InvoiceX, BondX, and LoanX offer predictable periodic returns.

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Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in

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