If you're new to investing, the idea of risking your hard-earned money can feel scary. That’s why starting with low-risk investment options is the best way to build confidence and grow your money steadily. In India, there are several beginner-friendly investment plans that offer capital protection, steady returns, and peace of mind.
Whether you’re a student, salaried professional, housewife, or a retiree, these low-risk options will help you take your first step towards financial growth.
Let’s explore the best low-risk investment plans for beginners in India in 2025.
1. Fixed Deposits (FDs) – The Classic Safe Bet
Why it’s ideal:
FDs are one of the most trusted and popular low-risk investment options in India. You invest a lump sum amount for a fixed tenure and earn guaranteed interest.
Returns in 2025:
6% to 8% annually depending on the bank and term.
Key Features:
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Safe and predictable
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Flexible tenures (7 days to 10 years)
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Suitable for all age groups
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Available in banks, post offices, and NBFCs
Tip: Senior citizens get 0.5% extra interest. Consider FD laddering to keep liquidity.
2. Public Provident Fund (PPF) – Long-Term and Tax-Free
Why it’s ideal:
PPF is a government-backed savings scheme that not only offers safe returns but also tax-free interest income. Perfect for long-term goals like retirement or child education.
Returns in 2025: Around 7.1% (revised quarterly by the government)
Tenure: 15 years (with partial withdrawals allowed after 5 years)
Benefits:
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Exempt from tax under 80C
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Backed by Government of India
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Compound interest makes your money grow steadily
Best For: Salaried individuals, housewives, and long-term planners.
3. Recurring Deposits (RDs) – Save Monthly, Earn Safely
Why it’s ideal:
If you can’t invest a lump sum but want to save regularly, RD is the best choice. You deposit a fixed amount every month, and get interest on it.
Returns in 2025:
Around 6.5% to 7.5% annually
Tenure: 6 months to 10 years
Best For: Students, beginners, and small monthly savers
Tip: Open with your existing bank for auto-debit and convenience.
4. Post Office Monthly Income Scheme (POMIS)
Why it’s ideal:
POMIS gives you a fixed monthly income from a lump sum investment. It is backed by the government, making it highly secure.
Returns in 2025:
~7.4% per annum, paid monthly
Maximum Investment: ₹9 lakh (single account), ₹15 lakh (joint)
Lock-in: 5 years
Best For: Retired persons, housewives, or those who want steady income
5. Debt Mutual Funds – Safer Than Equity
Why it’s ideal:
Debt funds invest in bonds, government securities, and corporate deposits, making them less volatile than equity mutual funds. They provide better returns than FDs with moderate risk.
Returns in 2025:
Can range from 5% to 8% depending on the type of debt fund
Best Options for Beginners:
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Liquid Funds (for short-term)
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Short-duration Debt Funds
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Gilt Funds (government bonds only)
Tip: Start with SIPs (Systematic Investment Plans) of ₹500/month.
Must read - Loan Check
6. National Savings Certificate (NSC)
Why it’s ideal:
NSC is a fixed income savings scheme offered by the post office. It’s secure, government-backed, and perfect for conservative investors.
Returns in 2025:
About 7% compounded annually
Tenure: 5 years
Tax Benefit: Under Section 80C (up to ₹1.5 lakh)
Best For: Safe investors who want medium-term growth.
7. Sovereign Gold Bonds (SGBs) – Invest in Gold Safely
Why it’s ideal:
If you like investing in gold, this is the safest digital method. SGBs are issued by the RBI and give you gold price appreciation + 2.5% annual interest.
Tenure: 8 years (with early exit after 5 years)
Returns in 2025: Depends on gold price + 2.5% fixed interest
Why Low-Risk: No worries about purity, theft, or making charges
Best For: Diversification and long-term gold investors
8. Senior Citizens Savings Scheme (SCSS)
Why it’s ideal:
Exclusively for people aged 60+, SCSS offers one of the highest fixed returns among all government schemes.
Returns in 2025:
8.2% per annum (subject to quarterly revision)
Tenure: 5 years (extendable by 3 more years)
Tax Benefit: Under Section 80C
Best For: Senior citizens seeking safe monthly income.
9. Bank or Corporate Bonds (AAA-Rated)
Why it’s ideal:
Bonds issued by top banks and reputed companies (rated AAA) are a good low-risk option for fixed returns.
Returns in 2025:
6% to 8.5% per annum
Tip: Always choose bonds listed on BSE/NSE and rated by agencies like CRISIL or ICRA.
10. Sukanya Samriddhi Yojana – For Girl Child
Why it’s ideal:
If you have a daughter below 10 years, this is a highly rewarding and safe investment backed by the government.
Returns in 2025:
Around 8% annually (tax-free)
Tenure: Until girl turns 21 (minimum investment: ₹250/year)
Tax Benefit: Full tax exemption under 80C
Conclusion
Starting your investment journey doesn't need to be risky or complicated. In India, there are plenty of low-risk options that offer decent returns, capital protection, and long-term benefits. For absolute beginners, starting with FDs, PPF, RDs, or debt funds is a smart way to grow wealth slowly but steadily.
Once you get comfortable, you can gradually explore other avenues like SGBs or mutual funds. The key is to stay consistent, avoid panic, and keep learning.
