Introduction

Are you looking for investment options in India that are safe, stable, and provide decent returns? You’re not alone. In 2025, with rising financial awareness and economic uncertainties, low-risk investments have gained massive popularity, especially among students, salaried professionals, and first-time investors.

This guide will help you explore the Top 7 investment options in India that are low-risk and suitable for wealth-building over time.

1. Fixed Deposits (FDs)

Fixed deposits have been the go-to investment option for Indian households for decades.

Why Choose FDs?

• Assured returns

• Low to zero risk

• Flexible tenure (7 days to 10 years)

• Tax-saving FDs available under 80C

Current Returns (2025):

• 6.5% to 7.5% per annum (depends on bank and duration)

Ideal For:

• Retirees, conservative investors, emergency funds

2. Public Provident Fund (PPF)

PPF is a government-backed savings scheme with tax-free interest and a lock-in period of 15 years.

Benefits:

• Interest compounded annually (7.1% approx)

• EEE tax benefits (Exempt-Exempt-Exempt)

• Backed by the Government of India

Lock-in Period:

• 15 years (partial withdrawals from year 7)

Ideal For:

• Long-term wealth creation

• Retirement planning

3. Debt Mutual Funds

Debt mutual funds invest in government securities, corporate bonds, and fixed-income instruments, offering higher returns than FDs.

Pros:

• Low to medium risk

• Liquidity and short-term flexibility

• Ideal for 1-3 year horizon

Popular Categories:

• Liquid Funds

• Corporate Bond Funds

• Short-Term Debt Funds

Ideal For:

• Salaried investors, short-to-medium term goals

4. National Savings Certificate (NSC)

NSC is a post-office saving scheme with fixed interest and capital protection.

Features:

• Fixed return (~7.7% p.a. as of 2025)

• Minimum investment: ₹1,000 (no maximum limit)

• Tenure: 5 years

• 80C tax benefit

Ideal For:

• Conservative investors, tax-saving seekers

5. Recurring Deposits (RDs)

An RD lets you invest a fixed amount monthly and earn fixed interest.

Why RDs Work:

• Ideal for small savers

• Good discipline tool

• Suitable for short-term goals

Interest Rate:

• Around 6% to 7.2% per annum

6. Mutual Funds via SIP (Low-Risk Options)

Systematic Investment Plans (SIPs) in low-risk mutual funds offer wealth creation with regular investing.

SIP Features:

• Start with ₹100-₹500/month

• Low-cost index funds available

• Compounding benefits

Choose:

• Conservative Hybrid Funds

• Large-Cap Index Funds

Ideal For:

• First-time investors, students, salaried professionals

7. RBI Floating Rate Savings Bonds

Issued by RBI, these bonds offer interest rates that reset every six months based on prevailing rates.

Features:

• Tenure: 7 years

• Interest rate: Currently ~7.35% (linked to NSC)

• Safe, government-backed

Bonus: Invest in Stocks via Upstox (Low-Risk Strategy)

Even stock markets can be approached safely using index investing, blue-chip stocks, and SIP in ETFs.

To get started, you need a demat account. Here’s how to open one FREE via Upstox:

How to Open a Free Demat Account with Upstox (2025)

Click Here to Open Your Upstox Demat Account

Step-by-Step:

1. Click on the referral link above

2. Enter mobile number & verify OTP

3. Fill basic details (name, PAN, Aadhaar)

4. Upload documents (PAN, signature, bank proof)

5. Complete Aadhaar eSign via OTP

6. Take a selfie & submit application

7. Account is activated in 24-48 hrs