The best investment options with least RISK

Everyone wants to invest money in some form or the other to get some returns. But with every investment there is an associated risk, which usually stops people from investing. The higher the risk the greater expected returns, this is a general phenomenon associated with investments. But what if there is an avenue, which offers good returns with limited risks? Well, there are many such options that provides good opportunity for wealth accumulation.

The best investment options can be shortlisted based on the risk profile of investor and the investment objective. A good financial plan can assist investors to accomplish their long term as well as short term investment aims. For risk averse investors, some of the options that can be looked at are:

• Unit linked insurance plan: Unit-linked insurance schemes are considered as one of the best investment alternatives in India. The ULIP plan offers a dual benefit of insurance and investment. Moreover, ULIP plans also provide tax exemption. ULIP plans come with a lock-in period of 3-5 years. 
• Public Provident fund: It is one of the safest and most secure long-term investment alternatives among all options in India. It is an exempt-exempt-exempt (EEE) product which means contributions, accumulations as well as withdrawal are tax free. A PPF account can be opened in a bank or post office.
• Debt Mutual funds: Mutual funds offer higher returns on investment over a long period. It is a market-linked investment option that invests money in different financial instruments such as equity, debt, money market funds etc. It offers much better returns as compared to other best investment alternatives in the market.
• Bank fixed deposits: Bank fixed deposits (FDs) is a very popular fixed-income investment alternative. As per the name, Fixed Deposit offers fixed returns over the investment tenure. The returns are payable monthly, quarterly or yearly, as per the bank regulations. The interest rate is attractive, ranging from 6.50 % to over 7% for the tenure of 1 year.
• National Pension Scheme (NPS): Being one of the best government-backed investment alternatives, the national pension scheme provides pension solutions for post-retirement life. The funds are invested in equity, bonds, government securities, and investment options as per the investor preference. As per the scheme, the accumulated interest is tax-free. If one opts for the lump-sum payment upon maturity, 40% of the maturity proceeds are tax exempt. If one chooses to receive a pension after maturity, the amount is taxable as a frequent income. This is the lowest cost investment product in India.
• Senior citizen savings scheme: Senior citizen savings scheme is one of the free tax saving investment options in India for senior citizens that offers them a regular income. The scheme offers a whopping rate of interest i.e. 8.6% interest per annum, which makes it a highly attractive investment option.
• Gold: Gold is one of the traditional, evergreen, and one of the best investment alternatives in India. It is because gold is considered a very safe asset by everyone. If anyone is looking for gold investment alternatives, they can simply choose gold deposit plans, gold ETFs, Gold bar, Gold mutual fund, etc.

As we all know, with investment your capital is at risk. It is better to know your risk appetite before investing in any investment plan. An investment without a risk profile analysis mostly ends up in financial crisis. The combination of your risk profile analysis and your investment goal gives you the perfect idea about the type of investment you should make. It is also necessary to get the basic knowledge about any sort of investment before investing.