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Home » 16 Best Low Risk Investments With High Returns In India 2023

16 Best Low Risk Investments With High Returns In India 2023

Talk about investment options in India and all you hear about is fixed deposits, LIC, NSC, PPFs, NPS, etc. That’s absolutely not the case, India offers a variety of investment options.

As a matter of fact, India’s BSE is Asia’s oldest stock exchange entity. This in itself indicates that apart from traditional high return low risk investments there are non-traditional options like investing in green energy assets also. Let’s look at the 16 Best Low Risk Investments with High Returns In India 2023 in this article.

16 Best Low Risk Investments for High Returns in India
Best low risk investments for high return

What are Low Risk Investments with High Returns?

Risk and return are two important sides of the same coin. As investors, we would want to opt for investment options where we can have the best of both worlds. Smart investment options that provide us with maximum returns at the lowest risk investment are known as low risk investments with high returns.

16 Best Low Risk Investments with High Returns – Choose The Best And Secure Your Rest

In lieu of the current market scenario, we are all looking for low risk investments with high returns. With so many high return low risk investments it may get tricky to make the right choice. Here are a few of the best low risk investments in 2023 in India that may fit your investment criteria.

1. Renewable Energy Asset

Renewable energy assets or green energy assets have gained popularity in the past few years as sustainable investment options. Since renewable energy assets are low risk investments with high returns they have shown stable returns and have survived the previous market depression.

The best renewable energy assets to invest in right now are solar, wind, and hydro. India specifically has been attracting investments in these sectors. To say the least, its growth in the Green Energy sector has been noticed by the World Economic Forum, United Nations, and other countries as well. 

Earning from renewable energy is easy nowadays. There are several green energy platforms that can help you to make monthly income out of your investments in green assets. One such company is Sustvest. Sustvest goal is to encourage people like you and me to take part in funding sustainable projects. 

The options include solar rooftop installations projects, solar farms, floating solar PV farms, etc. by becoming an investor with Sustvest you can gain an interest of 10 to 15% annually. That’s equivalent to long-term investment in any high-risk equity stock. While these are low-risk and stable returns.

2. Public Provident Fund

PPF is one of the lowest risk investment forms in India. That’s because it’s risk-free and offers slow and steady returns after a period of 15 years. The current interest rate on it is 7.1% compounded annually.  

You can open a PPF account with just INR 500 and can invest a maximum of INR 1.5 lakhs in a year in PPFs. you also have the option to withdraw your PPF savings after completing 5 years at a 1% deduction rate on the saved amount.

3. Municipal Bonds

Municipal bonds are debt instruments sanctioned Under the Amrut Mission by the Municipal corporation or Ministry of Housing and Urban Affairs (Mohua), to raise funds for their domestic civil projects. These bonds are listed in BSE. So, your money is invested in the stock exchange and returns are made.  

It is similar to the bonds issued by RBI and corporate bonds. However, municipal bonds are tax-free. They have a lock-in period of 3 years and are low-risk investment options. They are rated by CRISIL, which makes them viable to invest in as there are fewer chances of default. If the market goes well these bonds do well in terms of returns. Also, Municipal bonds are not tradeable. 

The benefits of investing in these bonds can be summed up as they are reliable and offer transparency to their investors.  They come with tax benefits and are known to be low risk investments with high returns.

4. Money Market Funds

Money market funds are debt funds and are a form of open-ended mutual funds. The money is invested in commercial papers (bonds), repurchase agreements, government securities, deposit certificates, and other highly liquid and safe securities to pay money market rates of interest. The ROI is really low and so are the risk and the duration of this fund. 

Money market funds are considered among the best short-term deft mutual funds because of their low risk, stable returns and higher liquidity.

5. Treasury Bills

Treasury bills are similar to government bonds.T bills are also issued by the RBI when it needs cash inflow for implementing schemes, controlling inflations, etc. They are zero coupon rate bonds, yet they attract investors. 

They are of three types: 91 days, 182 days and 365 days. That is their maturity period is 3, 6 and 12 months. That’s what makes them the safest way of investing in the ultra-short term. Who can buy Treasury bills? Well, anybody who has lumpsum cash and they don’t want to spend it. They can put it in the treasury and earn interest on it. 

6. Post Office Monthly Income Scheme (POMIS)

The Post Office Monthly Income Scheme has zero investment risks and offers a 5-year investment plan. Any person can open an account in the nearest post office by investing INR 1000. There’s an option to open a joint saving account as well. 

The maximum investment amount for a regular account is INR 9 lakhs per account and for a joint account, this limit extends to INR 15 lakhs. The current interest rate given is 7.4% per annum. The interest is payable monthly.

This account is also popular because it can be opened for a minor or mentally unwell person as well. And, it also provides options to get pre-mature closure at 1, 3 and before 5 years. In case of the death of the account holder, the account is closed and the money is transferred to their legal heir or nominee.

7. Senior Citizen Savings Scheme

This scheme is for citizens above 60 years of age. It comes with 80 C tax deductions. One of the distinct features of this scheme is that it can be opened as a joint investment between two people. Also, you can invest up to INR 15 lakhs for 5 years in this scheme. The current interest rate is 7% which is chargeable annually.

The eligibility for investing in Senior Citizen Saving Scheme differs for VRS holders, ex-defence servicemen and senior citizens.

CATEGORYAGE (in years)
VRS or Superannuation55 to 60 
Senior Citizens60 and above
Retired Defence Serviceman50 to 60

Options of pre-mature closure and tenure extension of 3 years are also provided in this scheme.

8. National Pension System

NPS was started by the government to make the working-class financially stable in their retirement period. For a person doing a private job or a government job that doesn’t pays a pension it is very important to invest in a good pension scheme. Ideally, pension schemes are low risk investments with high returns which will help you live comfortably after retirement.

Any person between the age of 18 to 60 years can invest in this scheme. You can claim tax deductions on this scheme’s investments.

NPS provides two ways to invest. Tier I  which is a regular account, has a locking period of up to age 60 years and comes with tax benefits.

Tier II account is an investment account with no tax benefits and you can withdraw and invest any time you like. With tier II, you can invest in all sorts of portfolios and earn more. But, that also indicates the market risk on returns. 

For details on high return investment plans read this article about 10 Best Investment Plans With High Returns In India 2023

9. National Saving Certificate

National Savings Certificates are a better option than a fixed deposit. At present, NSC gives a 7.7% interest compounded annually. This is a tax saving scheme and offers a deduction under section 80 C. You can open an NSC by just paying INR 1000. The maximum amount has no limit, it just has to be in multiples of INR 100. NSC matures at 5 years. 

NSC can be open for an individual, as a joint account, for a minor, or for a minor or mentally unsound person. So, it covers all age groups, unlike other policies. This is also the reason why it is a popular form amongst low risk investments with high returns. 

10. Corporate Bonds

Just like the government, companies also sell bonds to get funds from retail investors like you and me. These bonds are called Corporate bonds. These are also debt funds, through which the companies cover their short-term fund needs. 

The company and the investor undergo an agreement for a fixed period. At maturity, the company pays back the principal amount and the interest on it. The payments can be annually, quarterly, or monthly.

Now, why do people go for bonds as an investment option? It is because they offer a comparatively higher return as compared to fixed deposits and debt mutual funds. 

Corporate bonds are not as safe as Government bonds. That’s because their interest depends on several factors like RBI repo rate, stock market prices, loss or gain in equity, the demand for bonds in the market, etc. Although, if you play a safe bet, corporate bonds can be your low risk investments with high returns.

To understand the risk factor of bonds, the investor must check for the CRISIL value, coupon rate, face value, last traded price (LTP), secured or not and Yield to Maturity (YTM). Now, except for LTP and YTM all other factors remain the same till maturity.

If the CRISIL value is AAA, it means the bonds are more secure and their chances of defaulting are negligible. Similarly, if the coupon rate is more the chances of return and risks both are high. That’s because the coupon rate depends on the market. It rises and crashes with the market.

Companies like ICICI Direct, Golden Pie, Fixed Income, RBI and The Wint Wealth help retail investors to buy and sell bonds.

11. Gold Investment

Gold investments in India are a traditional way of creating an asset. You can invest in them in the form of bullion, coins, jewellery, sovereign gold bond, digital gold, Gold Mutual Funds, and Gold exchange-traded funds. 

Out of these, sovereign gold bonds are considered to be one of the best low risk investments in India. You should know that the interest earned at 2.5% on Gold bonds is taxable. The lock-in period of this bond is 5 to 8 years.

12. Equity Mutual Fund

Equity mutual funds can help you invest in multiple companies and diversify your investment portfolio. They are considered high-risk and high-return options. For investments of less than 3 years, equity mutual funds are not recommended. 

In equity mutual funds, your money is invested in purchasing the shares or buying equity stocks. You can decide and choose a portfolio for your investment among high, low, and moderate-risk companies’ assets. The fund manager as per your choice will allocate a certain percentage of your investment in multiple companies and buy equities.

Thus, it gives you an opportunity to gain more. You shouldn’t forget that, the market gains depend on the market share prices. So, when the share prices are up, you gain more interest and vice versa. However, many research reports suggest that for long-term ROI Equity mutual funds are a good option. 

Benefits: Equity mutual funds can give you returns between 15 to 20%. It helps to diversify your investments. You get help from mutual fund managers. You don’t have to pay any taxes on the gains after holding your shares for one year. Investing in equity mutual funds is convenient and can be done online with a small amount of money. You can claim redemptions by filling out a form. It is well-regulated by SEBI.

You also have the option to sell a part of your shares and hold the remaining. So, it offers liquidity and investment at the same time.

While considering equity mutual funds you must consider the expense ratio, the previous IRR history of a mutual fund, past returns of the fund manager, rating, etc to minimize investment risks.

With the right research, you can opt for equity mutual funds which provide low risk investments with high returns.

Check out our blog on How To Invest Money For the Best Return In India?

13. Fixed Annuities

Fixed Annuity Plans give a higher interest rate than a regular Fixed Deposit. It is mostly recommended to people close to retirement or who have just received a big chunk of money. Annuity plans allow consumers to receive a fixed monthly income.

Now, annuity plans are of two types largely. One starts paying immediately and the other keeps your money for some time, generates interest over it and then starts paying you a fixed monthly income.

To get the most advantage of this annuity scheme if you are close to retirement, you can invest in multiple annuity plans. This will divide your money. Suppose you bought three annuity plans at the age of 50 years. The first annuity starts paying you when you turn 60 years old, the second annuity starts paying you when you are 60 to 70 years old and the third annuity plan will start the monthly payout at the age of 80. By doing so, you will have multiple backups or pensions generated at different interest rates. 

You can do the same for your wife or your children. Just take a little amount of your equity portfolio and invest in annuity schemes. Let them gain interest and then enjoy the benefits. A good financially viable retirement plan. Investing in fixed annuity plans is a good financially viable retirement plan with low risk investments and high returns.

14. Dividend Paying Stocks

Dividends are the share in companies profit that is paid quarterly or annually. They are taxable sources of income. To get a decent dividend, you must have a large shareholding or a huge investment profile. 

Dividend-paying stocks are for long-term investment, that’s what subsides their risk. Over a period of time, given the right gestation period, dividend-paying stocks can prove to be low risk high return investments in India.

If a dividend-paying stock gives a dividend of more than 3% is considered a stable investment stock. Where can you find it? You can find these stocks online and invest in them through mutual funds or by contacting a professional if you are a beginner. 

15. High-Yielding Savings Accounts

Investing in high-yielding savings accounts that are offered by banks, with interest approximately between 3% to 5%, is considered to be a good investment in terms of low risk investments with high returns. This varies from bank to bank.

You can choose a savings account based on the minimum balance requirement, nearby availability of the bank and ATMs, the service charge taken by the bank, the transaction charges, online banking, etc. 

Just remember, maintaining a decent balance is the key to getting better interest returns in the savings bank account. 

16. Systematic Deposit Plan

A systematic Deposit Plan or Systematic Investment Plan (SIP) is a form of mutual fund investment in which you deposit a small amount monthly for investment. The minimum investment amount is INR 500. The amount is spent either in equity or debt funds. 

Now, you can opt for investing through SIP in a dividend stock or equity fund or debt instruments, or any ELSS scheme.

Before investing, check for low-risk options, stable-return portfolios, and tax benefits of the investment scheme giving SIPs.

FAQs: Low Risk Investments with High Returns in India

Are SIPs low risk investments with high returns?

Yes, SIPs or systematic investment plans are a form of low-risk investments with high returns. While investing in SIPs, look for growth fund SIPs as they are high yield low risk investments.

Why do people invest in low risk investments with high returns?

Not many people have a risk-seeking appetite. Many prefer low risk high return investments. Although these investments do not yield a very high return, they provide a good return for the level of risk that is to be borne by the investor.

Check out our blog on What are the Different Solar Energy Finance Options in India?


There you have it! A massive list of 16 Best Low Risk Investments with High Returns In India 2023 to multiply your money. While investing it’s important to understand that as an investor you have the power to make or break an economy. Where you invest matters and why not choose a sustainable option like renewable energy? 

If you’d like to wade into the waters of sustainable investment, contact us at SustVest today. Take a step into the investment journey and get a hold of some extra income.