Check Top 5 investment options to look at beyond bank fixed deposit savings: Interest on fixed deposits is lower now than in past years. If inflation is valued at all, the returns will be negative. FD is currently the right choice for investors expecting a steady return. No, there are other options also available. Do you want to keep your money in a safe place and get consistent returns? Today we are going to find out about the 5 major investment schemes that are currently very popular among the people.
Senior Citizens Saving Scheme (SCSS): It is the perfect savings plan for senior citizens and anyone over the age of 60 can invest in this savings plan. Its current interest rate is 7.4%. Its maturity period is 5 years. You can get tax exemption under this scheme under Section 80C. However, a person can spend up to Rs. 15 lakh.
Pradhan Mantri Vaya Vandana Yojana: This project is provided by the Government of India. Its interest rate is 7.4%. However, the lock-in period is 10 years. You will receive interest on your investment month by month. This is best for you if you are looking for a safer investment plan.
NPS Tier 2 account: If an investor already has an NPS plan he can open this account as well. NPS Tier II Accounting Scheme G, which invests in government securities and other related instruments, has yielded double-digit returns over the past one year. However, persons working in private companies are not eligible for income tax exemption under Section 80C.
Corporate Bond Funds: These are plans to invest in corporate securities and non-convertible debt securities. Since these funds invest at least 80% of their assets in highly valued institutional securities, the risk is significantly lower. These funds have provided returns of up to 9%. Therefore, it can be the best choice for someone looking for a regular income with low risk. Another advantage is that if the investor holds this fund for three years, he will be able to get capital benefits as these funds are classified as debt funds when calculating capital gains.
Short-term finance: This would be the perfect plan for those who are not hesitant to take the small risks for high returns. Because these funds earn interest income and capital gains, they offer higher returns than fixed deposit benefits. These funds are not affected by short-term interest rate fluctuations. These funds can provide a steady income. A person can withdraw funds through a formal withdrawal plan (SWP) according to his needs.
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