Low-Risk Investment for Middle-Class Families: Financial security and wealth growth are concerns in the mind of most middle-class families in India. By investing, part of that comes with the territory and although low-risk investment options, returns are quite steady usually staying safe with your hard-earned money. These are the five best investments for low-middle-class families.
Fixed deposit is one of the safest investment options available in India. FDs provide a fixed return from the banks which is usually around 6% – 7% per annum. Based on their requirements, families can deposit their amounts for a specific time, short-term or long-term. It has surety of balancing and interest predictability, which makes it a safer investment for persons preferring the safe route.
Provident Fund is a saving scheme under the government with tax deductions allowed under Section 80C. It pays an interest rate of 7-7.5 percent per annum for which the maturity period is 15 years. Middle-class economic families can invest small amounts every month and, thus long-term wealth creation at a comparatively very low risk can be enjoyed.
It is another government safe investment most suited for small to medium savings. Interest rate is around 6-7% with a lock-in period of 5 years; NSC is also entitled to tax deductions under Section 80C; as such, it remains popular among families wanting safety with a return.
Depositing on a recurring basis enables the family to invest one sum every month in banks or post offices. Very stable interest rates and flexible tenure options help in gradually building up a corpus for short-term goals such as education or vacations.
Debt mutual funds invest in government securities, corporate bonds and other fixed-income instruments. These are relatively more risky than FDs but offer comparatively higher returns (around 6-8%) with much less volatility. They are, therefore, suitable for families looking for moderate growth with lower risk.
Also Read: Gold vs Stocks vs SBI FD: Which Gave Best Returns Over 10 Years?
Low-Risk Investment Middle-Class Families: For middle-class families, those low-risk investments like fixed deposits, public provident fund, national saving certificate, recurring deposits and debt mutual funds provide financial security with table returns. A good mix of all these options can help a family meet its short-term goals while keeping the long-term vision intact without unnecessary risks.
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