Risk-free investment is what most of the people are interested in. Nobody wants to risk his or her hard-earned money in an avenue which does not provide safety of returns. Such is the time that people do not just want to safeguard their funds but also increase it considerably. The minimal risk would never yield returns which are as high as those with high risk. However, there is a middle ground. In this area there are options wherein, the investment options are risk-free, and they offer a higher amount of returns.

These investment options help you to earn a considerable profit with security and tax savings. Each of these investment options has certain peculiar feature. Based on these options, you can choose which form of investment is the most favourable one for you.

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Here are a few risk-free investment options:

Fixed Deposits: FD (Fixed Deposit) is inarguably one of the safest investment avenues. They are preferred over any investment when it comes to safety. Fixed Deposits are a go-to-option because they offer higher returns with minimal risk. There are options available when it comes to investing in a fixed deposit. FD interest rates are higher as compared to a savings account. Furthermore, the fixed deposit offered by the Non-Banking Financial Company (NBFC) is as good as market linked risk prone investments. Leading NBFCs are offering interest rates of up to 8% on fixed deposit investment.

Post Office Deposit: An investment in Post Office Deposit can be made up to 5 years. The longer the tenure you opt for, the higher will be the rate of interest you earn. Though the interest earnings are not as high as NBFCs’ fixed deposit; it is a good way to accumulate money over the large period. The primary benefit under this investment avenue is that you receive tax benefits.

Recurring Deposits: Under this option, you need to make the regular monthly investment. It is a good option for investors with stable monthly income. Recurring deposit is the combination of fixed deposit and savings. An investment in recurring deposit can help you make a decent amount of money over a certain period.

Fixed Maturity Plans: A close ended scheme which has fixed term. A Fixed Maturity Plan is flexible as it offers tenure starting from 1 month to up to five years. Under Fixed Maturity Plan, the investment is invested in market securities. The profits earned from those investments help in making a considerable amount of money. However, when deciding to invest in this avenue, make sure that you only choose an AAA-rated FMP schemes.

Debt Mutual Funds: Under Debt Mutual Funds, the amount that you invest is allocated towards bonds and government securities. Mutual Funds do not have a fixed term. However, you can take your money out at whatever time you wish. You do not have to pay the penalty as compared to other forms of investment where you need to pay a certain penalty if you decide to withdraw prematurely.

Public Provident Fund: PPF is one of the most preferred investment schemes in the country. The most intriguing part about PPF is that it offers an interest rate of up to 9%. Even the investment cap offers flexibility as an investment can be made between the amounts of INR 500 to INR 1, 50,000 in a single year.

Thus, these were the few options wherein you can invest and make a considerable profit.

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