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5 Best Low-Risk Investment Options for 2022

When we talk about financial freedom, it is not how much money we make, but how we spend it that distinguishes us from the crowd. The right types of investment decisions allow a person to multiply their hard-earned money and set themselves up for success for the rest of their lives. When looking for an investment plan, investors seek the highest returns with the lowest risk. Unfortunately, no investment scheme with such a unique set of characteristics exists on the market. We have researched on best options for safe investments with high returns in India

There are various risk-return combinations available in the market, designed for different types of investors based on their risk tolerance, earnings, and financial goals.  

However, this article will go over the best investment options for India in 2022. 

How to Choose the perfect Investment Plan for you? 

An investment plan is a set of financial goals and a strategy for achieving those goals. A good investment plan allows an investor to consider all variables objectively and make decisions based on them. An investment plan assists the investor in sticking to the plan and remaining consistent in their investing efforts. 

Investors can easily seek the assistance of financial advisors to plan their investment path and select the best investment plan 2022 tailored to their needs. There are some steps that are critical to the best investment strategies: 

  1. Evaluate your financial status: Individuals should assess their financial situation before planning investments because this will help determine the value of available investments and the type of investment tenure that the investor can choose. Some schemes require a large lump sum investment, whereas others offer recurring deposits with yearly or monthly investment plans. 
  1. Determine your risk tolerance: When making an investment decision, the individual must be aware of the risk that they are willing to bear, i.e. the amount of loss that they are willing to accept. A new/young investor may be more risk tolerant because they have time to recoup any losses, whereas an experienced/elder investor may be set in their ways and would not be willing to incur large losses. 
  1. Consider the investment time period: You can determine the type of results you want by determining your financial situation and risk tolerance. This allows you to determine when you want to achieve these results. As a result, you will select the scheme that best meets your expectations. 
  1. Choosing the investment scheme: Take a look at all the investment schemes available on the market, including mutual funds, direct equity, real estate, government investments, etc., before choosing one that fits your risk tolerance, financial goals, and timeframe.   
  1. Tracking the investment progress: In the case of short-term investing strategies, monitoring the investment is critical because the investor may need to make changes to the investments if they are not performing as expected. Long-term investments necessitate less restraint. 

5 Low-Risk Investments with High Returns in India in 2022 

Before investing in any investment, you must match your risk profile with the risks associated with the product. Some investments are high risk but have the potential to generate higher inflation-adjusted returns than other asset classes over time, whereas others are low risk and thus have lower returns. Here’s a list to help you out: 

Direct Equity 

Investing in equities is one of the best ways to build wealth for long-term goals. There are numerous examples of stocks that have increased the wealth of investors over time.  

While stocks have enormous potential to multiply your money over time, the risks of investing in stocks are also substantial. 

You can make direct investments in company stocks. The real challenge, however, is locating the appropriate stocks. And, with over 5,000 stocks listed on Indian stock exchanges, selecting the right stocks is undoubtedly difficult. 


A ULIP is a dual-purpose insurance policy. These plans, in addition to providing life insurance, invest in the market to generate higher returns. 

Unit Linked Insurance Plans (ULIPs) are hybrid investment options that act as insurance while also providing the benefits of mutual fund investments. The investor must pay a premium, a portion of which is used to provide insurance coverage and the remainder is invested in various financial instruments such as stocks and bonds. These are good long-term investment options with a 3–5-year lock-in period. Furthermore, the maturity proceeds are tax-free. 

When you pay a ULIP premium, you are purchasing two products. A portion of your premium is used for life insurance, while the remainder is invested in equity, debt, or hybrid funds. The advantages include the ability to customize the amount of life insurance and the flexibility to invest in a variety of funds. Furthermore, a tax benefit2 of up to Rs. 1.5 Lakh per annum paid as premium is available under Sec 80C. 

Peer to Peer Lending 

P2P lending is a non-traditional investment option that allows investors to lend money directly through fintech platforms, bypassing intermediaries such as banks. P2P investments, unlike equity investments, are debt-based and are not affected by market volatility. It offers high returns with a low risk. P2P lending yields significantly higher returns than other fixed-income investments. P2P lending is done via online platforms such as Monexo, making it available to people in rural India as well. 

The majority of investors’ primary goal is to find an investment option that will provide them with higher returns while posing minimal risk. If you share the same goal, peer-to-peer lending is unquestionably your best bet. 

Essentially, P2P lending allows investors to lend money directly to borrowers via online marketplaces such as Monexo. P2P investment is highly accessible due to its digitised nature. P2P investments require fewer compliances and provide higher returns to investors by eliminating the need for intermediaries such as banks. Because of low operating costs, the majority of interest income is passed on to investors. 

The investor receives interest on his or her investment on a regular basis. P2P investments, unlike equity shares and mutual funds, are not affected by market volatility. Furthermore, P2P websites such as Monexo use a robust borrower screening model that is based on 200+ unique data points. It lowers the risk of repayment default. Furthermore, the returns on P2P investments are higher than those on other fixed-income investments such as FDs and PPF. 

Unlike traditional banks, which can take weeks to process a loan, P2P websites use technology to allow for real-time loan processing. The presence of an online marketplace speeds up the process and reduces documentation complexity. 

The main risk associated with P2P investments is the risk of repayment default. However, thorough borrower screening and multiple checks performed by platforms such as Monexo can reduce the risk of default. 

National Pension Scheme (NPS) 

Being one of the best government-backed investment options that provides pension solutions. According to the investor’s preferences, the fund invests in bonds, government securities, equity, and other investment alternatives. 

It has two modes: auto and active. The funds are automatically invested in various assets under the auto option, whereas the active option allows the investor to invest in assets of their choice. 

The lock-in period is determined by the investor’s age, as the scheme does not mature until the investor reaches the age of 60. 

The accumulated interest is tax-free under this scheme. When the lump-sum payment option is selected, 40 percent of the maturity proceeds are tax-free. If the pension is received after maturity, the amount is taxable as regular income. 


The Public Provident Fund is a long-term investment tool that helps you build wealth steadily while exposing you to low risk. It is backed by the Indian government and is primarily used for retirement planning. 

While the PPF provides consistent rates to offset overall inflation, they also provide tax savings. The interest earned is not taxable, and the monthly deposits are tax-deductible up to Rs. 1.5 Lakh per year. It also allows for partial withdrawals and a loan against your PPF of up to 25% of the fund’s value, repayable within three years. PPF has a minimum tenure of 15 years and requires a yearly deposit of Rs. 500 to keep the account active. 


The golden rule of making a wise investment is to have a thorough understanding of the various types of investment options available in the market. Most investors’ investment goals vary depending on their financial objectives, time horizon, and risk tolerance, among other factors. To make money grow, an individual must invest in smart investment options that can generate lucrative long-term returns. 

Also, as an investor, you must distinguish between savings and investment. While saving is regarded as an aloof method of wealth accumulation, brilliant investment techniques can help you create more wealth. 

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