{"id":16755,"date":"2022-09-27T11:02:35","date_gmt":"2022-09-27T05:32:35","guid":{"rendered":"https:\/\/kuvera.in\/blog\/?p=16755"},"modified":"2022-09-27T11:05:29","modified_gmt":"2022-09-27T05:35:29","slug":"five-low-risk-investment-options-to-grow-your-wealth","status":"publish","type":"post","link":"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/","title":{"rendered":"Five Low Risk Investment Options To Grow Your Wealth"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-69d844d992462\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-69d844d992462\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#Public_Provident_Fund_PPF\" title=\"Public Provident Fund (PPF)\">Public Provident Fund (PPF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#Features_of_a_PPF_Account\" title=\"Features of a PPF Account\">Features of a PPF Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#Fixed_Deposits\" title=\"Fixed Deposits\">Fixed Deposits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#The_Advantages_of_Fixed_Deposits\" title=\"The Advantages of Fixed Deposits\">The Advantages of Fixed Deposits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#Recurring_Deposits\" title=\"Recurring Deposits\">Recurring Deposits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#Features\" title=\"Features\">Features<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#Voluntary_Provident_Funds_VPF\" title=\"Voluntary Provident Funds (VPF)\">Voluntary Provident Funds (VPF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#The_Advantages_of_Investing_in_Voluntary_Provident_Funds_VPF\" title=\"The Advantages of Investing in Voluntary Provident Funds (VPF)\">The Advantages of Investing in Voluntary Provident Funds (VPF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#Gold\" title=\"Gold\">Gold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#Advantages_of_Investing_In_Gold\" title=\"Advantages of Investing In Gold\">Advantages of Investing In Gold<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#What_are_some_important_factors_to_consider_before_investing\" title=\"What are some important factors to consider before investing?\">What are some important factors to consider before investing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/#Interested_in_how_we_think_about_the_markets\" title=\"Interested in how we think about the markets?\">Interested in how we think about the markets?<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">The low-risk investment is the finest option for those who do not want to deal with unpredictable market fluctuations. These are investment options that generally provide a fixed income regardless of changes to the economy or business. This group includes fixed deposits and other investment alternatives such as National Savings Certificates,\u00a0 Employees&#8217; Provident Fund, Public Provident Fund, Sukanya Samriddhi Yojana, and Senior Citizen Savings Schemes, which are government-sponsored schemes and offer low-risk guaranteed returns.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/kuvera.in\/explore\/fixed-deposit\/c\/all\"><img loading=\"lazy\" class=\"size-large wp-image-13417 aligncenter\" src=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-1024x334.jpg\" sizes=\"(max-width: 640px) 100vw, 640px\" srcset=\"https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-1024x334.jpg 1024w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-300x98.jpg 300w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022-768x250.jpg 768w, https:\/\/kuvera.in\/blog\/wp-content\/uploads\/2022\/07\/FD-Banner_14-July-2022.jpg 1080w\" alt=\"Online Fixed Deposits on Kuvera\" width=\"640\" height=\"209\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">There are many low-risk investment options available even for those who do not understand the intricacies of finance.\u00a0 By investing money wisely, individuals can protect themselves from the unpredictability of the markets and get a good return on their money. Some of them are discussed below:\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Public_Provident_Fund_PPF\"><\/span>Public Provident Fund (PPF)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">In order to mobilise small deposits in the form of investments with a return, the Public Provident Fund (PPF) was established in India in 1968. It is also known as a savings-cum-tax savings investment vehicle that enables one to save wealth for retirement while reducing annual taxes. A PPF account can be opened by anyone looking for a secure investment alternative to reduce taxes and earn assured profits.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Features_of_a_PPF_Account\"><\/span>Features of a PPF Account<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The following are the key characteristics of a public provident fund scheme:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Investment tenure<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">A PPF account has a 15-year investment lock-in period before which funds cannot be fully withdrawn. After the lock-in period is over, an investor may decide to extend this tenure by an additional 5 years if desired.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Primary Amount<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">A provident fund scheme allows individuals to invest a minimum of Rs. 500 and a maximum of Rs. 1.5 lakh per year. This investment can be made in a lump sum or in installments. For an account to remain active, an annual contribution must be made to a PPF account.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Eligibility Criteria<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Indian citizens residing in the country are eligible to open a PPF account in their own name. A Public Provident Fund account in a minor&#8217;s name is also permitted as long as their parents manage it. Non-resident Indians are not permitted to open a new PPF account. Any accounts already opened in their name will, however, continue to be active until the term is over. An advantage for Indian citizens is that these accounts cannot be extended for 5 years.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Interest in a PPF Account<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The Central Government of India sets the interest rate for public provident fund schemes. It aims to offer a better interest rate than standard bank accounts offered by various commercial banks in the country. Current interest rates for these accounts are 7.1%; they are subject to quarterly changes at the government&#8217;s discretion.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>PPF &#8211; Tax Advantages<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The principal amount invested in a PPF account is exempt from income tax. A tax exemption claim for the entire investment&#8217;s value is permitted under Section 80C of the Income Tax Act of 1961. However, it should be noted that the maximum principal that can be invested in a single financial year is Rs. 1.5 lakh.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Additionally, the total interest accrued on PPF investments is exempt from taxation. Because of this, taxation is not applied to the entire amount redeemed from a PPF account after it reaches maturity. This policy makes the public provident fund plan in India appealing to a large number of investors.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Fixed_Deposits\"><\/span>Fixed Deposits<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Fixed deposits are one of the most common methods of saving money in India. They provide strong returns, are risk-free investments, and are easy to open. A <a href=\"https:\/\/kuvera.in\/fixed-deposit\/all\">fixed deposit<\/a> also referred to as a term deposit, is one of the most secure financial instruments available. For instance, investors receive safe, stable, and fixed returns on a predetermined date based on the interest payment plan they select. Interest payment schemes include monthly, quarterly, and semi-annual options.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_Advantages_of_Fixed_Deposits\"><\/span>The Advantages of Fixed Deposits<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Fixed Returns<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The interest rate on the FD is fixed, so the investment is secure regardless of market conditions. According to the payment plan investors select, they will continue to earn the fixed interest amount, i.e., fixed returns on a fixed date.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Capital Protection<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">There is no need to worry about capital erosion when investing in FDs. The funds remain in the bank, which swiftly pays the interest that is due. Investors receive their entire investment back when the FD matures. As a result, investors don&#8217;t suffer any investment losses.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Secure investment plan<\/strong>\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">One of the most important FD benefits is a secure investment plan. Fixed deposits are one of the instruments that are best suited for anyone if they are expecting a guaranteed return on their investment. This is because the rate of return on a fixed deposit is fixed and users will receive the principal amount back along with additional interest after a fixed term.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Low risk<\/strong>\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Low risk is one of the advantages of fixed deposits because the interest rate is not impacted by market volatility, making them a less risky investment.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Tax-saving<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The Income Tax Act of 1961&#8217;s Section 80C allows individuals to deduct up to 1,50,000 rupees from their taxes. Only if users make an investment in a tax-saving fixed deposit, which is frequently provided by banks and post offices, is their investment eligible for tax deduction under this provision. The tax liability is significantly reduced with this kind of investment.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The most reliable and sufficient financial instrument is the fixed deposit because even people with little risk tolerance invest their money in them.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Recurring_Deposits\"><\/span>Recurring Deposits<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/kuvera.in\/blog\/recurring-deposits\/\">Recurring Deposits (RD)<\/a> are a type of savings option that assists with future planning. With an RD saving account, individuals can routinely save a small sum with monthly contributions for a predetermined length of time while earning interest on those deposits.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">A lump sum payment and interest are made once the RD deposit matures. An RD&#8217;s interest rate is constant for the duration of the RD, making it simple to calculate how much one can make by investing in one.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Features\"><\/span>Features<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">A recurrent deposit has the features listed below:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Investment Amount<\/strong><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">RD investments don&#8217;t need a lot of money. They are ideal for all categories of investors as a result. Individuals can invest in RDs with very little amount. . The minimum deposit amount, however, may vary between institutions.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Tenure<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The investment period for RD schemes generally spans from six months to ten years.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>The Interest Rate<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Compared to standard bank savings accounts, RDs usually provide higher interest rates. Senior citizen depositors additionally receive special interest rates.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Investing Effectiveness<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">To establish a disciplined approach to saving, the investor must consistently deposit a particular amount as part of a recurring deposit scheme.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Easy to Invest<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The best option for this is a recurring deposit because it will be easy for clients who are salaried to put away a specified amount each month for savings. Additionally, the interest rate for RD is fixed, shielding the investment from fluctuations in interest rates. RD schemes frequently provide guaranteed returns.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Voluntary_Provident_Funds_VPF\"><\/span>Voluntary Provident Funds (VPF)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The EPF is a great way to save money for retirement by putting some of the salary into an account. It is a government-sponsored retirement savings plan for those working in the organized sector. The <a href=\"https:\/\/kuvera.in\/blog\/all-about-epf-ppf-vpf\/\">Voluntary Provident Fund (VPF)<\/a> is an extension of the EPF. Both the employee and their employer make contributions to the employee&#8217;s account under the EPF Scheme. In a voluntary provident fund system, only the concerned person is required to make regular payments. Therefore, VPF may be easily understood as a scheme where people choose to contribute an additional amount of their income.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"The_Advantages_of_Investing_in_Voluntary_Provident_Funds_VPF\"><\/span>The Advantages of Investing in Voluntary Provident Funds (VPF)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The key advantage of a VPF account is that it falls into the Exempt-Exempt-Exempt (EEE) category. Therefore, by investing in VPF, individuals can profit from tax advantages and increase their wealth over time. The benefits of a VPF account are as follows:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Safe investment option<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The scheme is a safe investment option because it is operated by the government of India.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Easy to Apply<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">To register a VPF account, an employee must approach his HR\/Finance team and urge them to submit a registration form requesting an additional contribution to the VPF.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>High returns<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Under Section 80C, contributions up to Rs. 1.5 lakhs per year and interest accrued are exempt from tax, resulting in higher long-term profits.<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Gold\"><\/span>Gold<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">In Indian culture, gold is considered to be a very important investment. The only option to invest in gold before was by purchasing physical gold. Additionally, gold can be purchased as gold jewellery, artefacts, or bullion coins. With gold still being one of the most often purchased assets, there are numerous options to invest in gold in India. Anyone can invest in gold either in its physical or digital form. As an investment, gold can be held in its physical form as jewellery, coins, bars, bullion, etc. The following are some significant drawbacks of purchasing actual gold:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Making\/designing fees increase the cost of the purchase.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Storage costs apply due to security and insurance requirements.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Digital assets such as Digital Gold, <a href=\"https:\/\/kuvera.in\/blog\/what-is-gold-etf\/\">Gold ETFs<\/a>, Gold Mutual Funds, and Sovereign Gold Bonds can be utilised to overcome the constraints of physical gold. Some of these investing alternatives are briefly described below:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Digital Gold: <\/strong>These are available for purchase through a variety of apps in increments starting at 1 gram.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Gold Exchange-Traded Funds:<\/strong> Gold ETF is an <a href=\"https:\/\/kuvera.in\/mutual-funds\/all\">open-ended mutual fund<\/a> whose underlying asset is gold.\u00a0 Having a Demat (dematerialized) account is required to purchase gold ETFs.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Sovereign Gold Bonds:<\/strong> The Reserve Bank of India (RBI) periodically issues these bonds. SGBs are government securities denominated in grammes of gold. They serve as substitutes for physical gold. The RBI issues SGBs during the financial year in a variety of tranches. These securities are offered through banks, brokers, post offices, and online distribution channels. Investors who want to purchase gold solely for investment purposes might consider SGB as a viable choice. SGBs make sure that the gold&#8217;s quality is maintained and that investors are secured against risk.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Advantages_of_Investing_In_Gold\"><\/span>Advantages of Investing In Gold<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u00a0A few of the advantages are:<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Gold investments are highly liquid<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">There are more uses for gold than as an investment. People in India also purchase gold for personal use. Therefore, it is influenced by mainstream gold demand as well as investment demand. Consequently, this scarce good is liquid. Additionally, one can simply sell their gold investment at any location in the world.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0<strong>Hedge against inflation and currency risk<\/strong><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Gold is an excellent hedge against inflation. Gold is a strong hedge against inflation and currency risk.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Helps in diversification.<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Gold in an investment portfolio promotes diversification. Additionally, a portfolio can benefit from using this yellow metal as a solid hedge against volatility. Generally, the price of gold is also unaffected by all the macro- and microeconomic factors that have an impact on other asset classes.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<ul>\n<li aria-level=\"1\">\n<h4><span class=\"ez-toc-section\" id=\"What_are_some_important_factors_to_consider_before_investing\"><\/span>What are some important factors to consider before investing?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">You should understand the investing objective, investment horizon, and risk profile, and choose a scheme\/option that meets your needs. Not all safe investments provide big returns. Some of the factors you can keep in mind are:\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Goal:<\/strong> Always invest with a goal in mind. Investing based on your goals will help you remain determined and encourage you to continue investing. For instance, you can select either a PPF scheme or a Senior Citizen Saving Scheme (SCSS) scheme if your objective is to establish a <a href=\"https:\/\/kuvera.in\/mutual-funds\/all\/solution-oriented\/retirement-fund\">retirement fund<\/a>. The best alternative for you may be Sukanya Samriddhi Yojana (SSY) if you want to set money aside for girl child&#8217;s future. Investing in these plans will help you achieve your objectives without difficulty.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Investment Horizon:<\/strong> Your investment horizon is a crucial factor in deciding which scheme to invest in. For instance, Public Provident Fund (PPF), government bonds, or <a href=\"https:\/\/kuvera.in\/blog\/sukanya-samriddhi-yojana-calculator\/\">Sukanya Samriddhi Yojana (SSY)<\/a> may be good options if you have a long investing horizon. Depending on your investment goal, you can pick from Fixed Deposits ( FD) or National Savings Certificates (NSC) if your investment horizon is five years or less.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Investment Amount:<\/strong> The scheme that will fit into your portfolio the best will depend on the amount you desire to invest in it. To choose a strategy that meets both your budget and your investment aim, keep in mind the minimum investment amount needed for the particular scheme.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\"><strong>Taxes:<\/strong> Taxes are a major factor in determining the real return on investment. For instance, an investor&#8217;s PPF and SSY investments and earnings are entirely tax-free. As a result, while selecting a scheme, carefully evaluate the tax consequences on the investments and returns.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Interested_in_how_we_think_about_the_markets\"><\/span>Interested in how we think about the markets?<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>&nbsp;<\/p>\n<p>Read more:\u00a0<a href=\"https:\/\/kuvera.in\/blog\/category\/zen-and-the-art-of-investing\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Zen And The Art Of Investing<\/strong><\/a><\/p>\n<p>Watch\/hear on YouTube:<\/p>\n<p>&nbsp;<\/p>\n<p style=\"padding-left: 40px;\">\n<style>.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }<\/style>\n<\/p>\n<div class=\"embed-container\"><iframe src=\"https:\/\/www.youtube.com\/embed\/f7yfzUhQDiM\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">\ufeff<\/span><\/iframe><\/div>\n<p>&nbsp;<\/p>\n<p>Start investing through a platform that brings goal planning and investing to your fingertips. Visit\u00a0<a href=\"https:\/\/app.kuvera.in\/\">Kuvera.in<\/a>\u00a0to discover\u00a0<a href=\"https:\/\/kuvera.in\/blog\/direct-plans-better\/\">Direct Plans<\/a>\u00a0and\u00a0<a href=\"https:\/\/app.kuvera.in\/explore\/fixed-deposit\/c\/all\">Fixed Deposits<\/a>\u00a0and\u00a0<a href=\"https:\/\/kuvera.in\/user\/login\">start investing today.<\/a><\/p>\n<p>#MutualFundSahiHai #KuveraSabseSahiHai!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The low-risk investment is the finest option for those who do not want to deal with unpredictable market fluctuations. These are investment options that generally provide a fixed income regardless of changes to the economy or business. This group includes fixed deposits and other investment alternatives such as National Savings Certificates,\u00a0 Employees&#8217; Provident Fund, Public [&#8230;]<\/p>\n<p><a class=\"btn btn-secondary understrap-read-more-link\" href=\"https:\/\/kuvera.in\/blog\/five-low-risk-investment-options-to-grow-your-wealth\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":11,"featured_media":16766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[99,593],"tags":[1592,751],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>5 Best Low Risk Investment Options To Grow Your Wealth - Kuvera<\/title>\n<meta name=\"description\" content=\"Check out the list of best low risk investment options in India and the advantages of investing in them. 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