With the global economy slowing down and international trade policies that are sure to stoke inflation, 2025 is proving to be a year teeming with economic uncertainty. In such a scenario, building a portfolio with less risky assets can help you ride out market volatility with some confidence. Here are a few safe or low risk investment options for you to consider this year:

1.Fixed Deposits

While many see this as a conservative form of investment, saving money in FDs during market irregularities has always held people in good stead. FDs offer assured returns with tenures ranging from 7 days to 10 years. Senior citizens benefit from higher interest rates like 7.90% at South Indian Bank.

2.Gold

Gold has conventionally been a safe investment option, especially in our country where it also carries cultural value. But today there are more gold investment options in addition to physical gold like gold ETFs, gold funds and gold bonds. Gold also acts as a hedge against inflation, its value usually rises when currency value falls.

3.Public Provident Fund

The PPF is arguably one of the best investment options in 2025, especially since it is government backed. It offers tax-exempt contributions, interest and withdrawals, ensuring tax efficiency. You can start investing with just INR 500 annually, up to INR 1.5 lakhs. With a lock-in period of 15 years, it’s ideal for long-term wealth accumulation and retirement planning.

4.National Savings Certificate

Perfect for small and medium investors, NSCs come with a 5-year tenure and offer fixed interest rates. They also qualify for tax deductions under Section 80C of the Income Tax Act.

5.RBI Floating Rate Savings Bonds
These 7-year bonds are issued by the Reserve Bank of India and are an excellent option for risk-averse investors looking for better returns than FDs, with sovereign backing. The interest rate is floating, subject to possible upward or downward revisions and investors receive regular income through half-yearly payments, usually in January and July.

The trade-off with conservative investment options is lower interest accumulation in the long run, but securing your money in times of crises can give you absolute peace of mind. With prudent planning and diligence, you can harness the potential of your hard earned money, even in 2025, which feels nothing short of an economic rollercoaster.

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Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.