Some times ago very few investment instrument  were available in the market like high-grade bonds and high-grade preferred stock, FDs ,saving accounts,some companies deposits. But today we have many more instruments available in the market. It have been an old sound principle that those who cannot afford to take risks should be content with a relativity low return on their investment funds. The rate of return sought should be dependent rather on the amount of wise decision the investor is willing  and able to bring to bear on his task. In India middle class people around 250 million and in present economical condition everyone  want investing and want to grow own money with inflation. Middle class people cant bear too many risks with hard earned money so they invested in low risk low return instrument so they called defensive investor .

We have already outlined in brief the policy of this type of investor. They should divide there money between high grade bonds and high grade common stocks and high grade common blue chip stocks.For this type investor we have a fundamental rule that they should never invested less then 25% and higher then 75% in common stocks, or here is a implication they should be  divide there fund in equal one like 50-50%. But 50-50% looking very risky if common stock break more then 50% investor are gone to down on earth.So i suggest standard 25-75% is best term.

Bonds are very safe and good return yield instrument for this type investor. But here are two important question arise first is, should he buy tax-able bond or tax-free bonds,second is, should he buy shorter or long term bond maturities.Here are good suggestion is a higher return after tax bond is good from good municipals than from good corporate bonds and choose to medium term bond is good idea.Always invested in E-SERIES  bond they may cash easily and there are no paper work and problems.Before investment please check the rating of bond from rating agency. Higher rating is AAA. Mostly government bond have this rating but if u find private bond with AAA rating its very good to invest.corporate FD and NCD or CD are most high yield investment but they are little risky but if you find with high rating it become good investment. so if you cant bear risk want growth of your money and have little amount of money so become defensive investor a safe investor.