There are plenty of safe investments if you are a long term investor. Of course, interest rates in the economy have declined and shares have gone nowhere. If you are looking to park your money in safe instruments in 2017, here are some great options. However, it is always best to have a slightly longer term time frame.
If you are looking at fixed income, one of the best safe investment options in 2017 would be the Fixed Deposits of Bajaj Finserv. The investments is rated AAA by a host of rating institutions, which means it is very safe. If you are looking at cumulative deposits, you currently get an interest rate of 8.25 per cent, which is not bad considering that banks offer you an interest rate of around 7.25 per cent for similar tenures. The company offers you an interest rate of 7.77 per cent on its monthly income FDs.
Fixed Deposits of KTDFC
These are great deposits to invest in, especially since interest rates are falling. This is a government of Kerala Institution which offers an excellent interest rate of 8.50, which makes it one of the best safe instruments in India to invest in 2017. The deposits are guaranteed by the state government. However, it is important to note that there would be a TDS that is applicable on the deposits and the interest is very much taxable. Go for the longer term tenure of 3 years, since the interest on these deposits is also the same for the three year tenure. This is perhaps the best fixed interest yielding instrument in the country.
The Public Provident Fund has to be the best and the safest investment for 2017. It is safe because it is guaranteed by the government of India. It is best because of a number of reasons. Interest rate at 8.1 per cent, beats the interest rates offered by banks in the country. The interest income is completely free from tax and one can get tax benefits under Sec 80c of the Income tax Act.
Savings Bank Account of Yes Bank
If you have large sums of money and want immediate liquidity, the savings bank account of Yes Bank, is the best and safe investment option in 2017. The bank offers an interest rate of 6 per cent on balances, against an interest rate of 4 per cent, that most banks in the country offer. The tax benefit is also much better since interest income up to Rs 10,000 in savings account of free from tax. Go for it if you want liquidity.
Liquid funds of mutual funds place their money in safe government securities. They may also invest the money in other safe fixed instruments including high quality deposits including commercial paper. The returns from these liquid funds has dropped lately, but, they can still yield returns of around 7-8 per cent. These instruments are more tax efficient then bank fixed deposits, which make them a good bet. Look for liquid funds that have been highly rated by some of the firm like Value Research Online.
IDFC Bank Fixed Deposit
Another safe investment bet for 2017 in India would be the IDFC Bank Fixed Deposits. The bank is currently offering an interest rate of 8.25 per cent on certain deposits. This is a good 0.75 to 1 per cent more then what other banks are offering. Go for the online mechanism for applying in the FD which is hassle free. This is because you are unlikely to have branches of IDFC Bank all over the place, as the bank is a relatively new entrant in the banking system. However, the deposits are very safe and you can opt for both long-term as well as short term tenure.
Recurring deposits offer you the same interest rate as bank deposits. So, if you have regular monthly income to spare, this would be the best option. Look for investments where your need is best met. For example, if you want to place for 36 months deposit go ahead and place for that tenure. Recurring deposits of banks are safe and a good bet to invest in 2017. It helps to build a corpus over a period of time. Go for the longer term tenure since it is more beneficial.