Risk Free Ways to Invest Money in 2025
Investment is essential part of your financial journey to not only gain wealth, but also to secure your retirement.
However, it’s not easy to maintain your financial portfolio in the long term without constantly staying vigilant about your money.
Also, it’s not easy to make money from stocks or trading if you don’t have access to proper knowledge and up-to-date charts for stock investments. However, if you want easy and risk-free ways to make money, there are ways that work.
In this article, you’ll learn five useful and risk-free ways to invest your money for retirement.
- Annuity Plans
If you want to save some of your money against a risk-free investment plan, you must use investment vehicles like Annuity plans to save money on your own terms.
Annuity plans allow investors to save money just the way they wish. You can save a lump sum amount or keep your money through regular installments.
This investment allows you to draw out benefits on a monthly basis after your retirement. Some good reasons to choose annuity plans are –
It’s an Insurance-based investment plan. You get to generate regular income after retirement.
It offers steady and lifelong investment opportunities.
The payment goes on until the death of the investor.
- Senior Citizen Savings Scheme (SCSS)
When we’re talking about retirement saving plans or financial plans for senior citizens, then this is the best option. It’s a tax-saving investment opportunity and a risk-free one.
Many countries have investment plans for senior citizens, providing them with regular income after retirement. Most of these schemes are provided by the government and are great ways for working professionals to secure their own future after retirement.
Some features of these investment plans include –
These are meant for senior investors.
There’s an investment cap, and it can be invested in a lump sum or through regular installments.
Such investments are also eligible for tax deductions.
- Public Provident Funds
Want to make steady investments to secure your retirement age? Then, try investing your money in PPF accounts.
Professionals based in India enjoy the benefits of PPF in the long-term. It’s a great opportunity for tax-exempt contributions, withdrawals, and interests which ensures tax efficiency.
Here are some reasons why PPF investments are secure and good for professionals who want to enjoy the tax benefits in the long term.
PPF investments are government-backed plans that create a financial safety net for professionals.
Secure your investment capabilities.
Investors can start with as low as 500 Indian rupees per month and extend up to 1.5 lakhs on an annual basis.
- Bank Fixed Deposits
If you have a lump sum amount and you want to grow it over a period, it’s best to go with bank FD. Bank FDs are secure ways to grow your money. It requires investors to lock up their money in their bank account for a specific tenure. The money grows at a steady interest rate.
Here are some reasons to invest in a bank FD –
Bank FDs offer guaranteed returns to investors.
It has a predetermined maturity period.
Most FD schemes are for 7 to 10 years long.
Also, most FD schemes offer investment-linked loan options.
However, it’s important to remember that investors must lock in their money for a specific maturity period. Withdrawal of FD fund can incur in specific amount of penalty payment.
- Mutual Funds
How Come mutual funds are risk free investment? Well, there are specific level of risk in mutual fund investment. But, it’s not as significant as investing in high-risk cryptocurrencies or stock assets.
Also, whether you’re investing for retirement or investing for financial gain, you must take some risk to increase the chances for profit. With a balanced mutual fund investment portfolio, you can increase the chances for profit while also not risking too much. Here are some reasons to invest in mutual funds –
You can invest a lump sum or start with a minimum amount.
It’s not difficult to liquidate your assets like FD investments.
Also, the interest rates are higher than what you get in FD or from PPFs.
Conclusion
Every investment plan has its risks and merits. Stocks offer significant returns, but there’s a chance to lose your money as well. Same goes with cryptocurrency investment. However, retirement plans are better left to traditional plans life PPF, FDs, and annuity plans.
The plans shared in this article should be helpful if you’re planning to save for retirement.
