The government, fin-techs, banks and other firms offer numerous saving investment schemes. They do this to persuade investors to invest and multiply their returns after some time. But as a well-informed investor, you need to thoroughly evaluate every single investment plan before making a final choice.
Given below are a few options for your consideration:
1. ELSS Mutual Fund Equity-linked saving scheme (ELSS)
If you choose this investment plan, you invest in an equity fund. The scheme is eligible for tax exemption under section 80C of the Income Tax Act, 1961. The benefit will come up to a maximum of INR150000. You may either invest a lump sum amount or through SIP (Systematic Investment plan) to enjoy this benefit.
2. National Savings Certificate (NSC)
This, too, is an investment plan that offers tax benefits. And you can open it with any of the post offices across the country. Since this is government-sponsored, it guarantees a regular return on your investment. The tax exemption for your investment here has a cap of INR150000. It features an interest rate of approximately 6.8%. And the government revises it every quarter. The scheme provides two types of certificates: five years and ten years.
3. Post Office Monthly Income Scheme
This is a best investment plan that offers the interest of your investment. Thus this ensures a steady flow of monthly revenue. The scheme is one of the safest investment options available in the country. MIS, however, is taxable. But You can start with nominal initial investment and increase as your revenue flow improves. Even minors above 10 years are eligible for the plan. You may also open multiple accounts. But for adults, the entire amount should not exceed INR450000. The same is INR300000 for minors.
This plan lets you nominate a nominee. And if you happen to transfer to another city, you can transfer your entire amount to your city of residence, and that too without spending even a single penny. Only Indian citizens are eligible for this scheme.
4. Senior Citizen Savings Scheme
This low-risk investment plan combines tax-benefit and a steady source of revenue upon retirement. You become eligible for this scheme when you reach the general retirement age. But you should start investing here within one month of receiving your retirement benefit. You can invest up to INR1500000 either as a single person or through a joint account. It, however, is available only for the Indian citizens who reside in the country. The investment reaches maturity within five years. You may also make withdrawals before that time.
5. ULIP (Unit-Linked Insurance Policy)
ULIP combines insurance and investment. The insurer invests half of your premium in bonds in creating growing wealth. The other half offers you the life cover you need. Earlier, the ULIPs were accused of levying hefty amounts as charges. At present, they have lowered all their charges. But this plan comes with a five-year lock-in period. Contact an insurance agent to know more about this plan.
6. Post office time deposit
Your post office too offers the facility to make fixed deposits. The feature that sets it above others is its high return on your investment. This is higher even than your bank, and that too without having to incur any additional charge. Post office time deposit too is one among the safest investment plans because the government of India supports this.
There exists no best investment plan. Every scheme comes with its own features and benefits. Know what you need and go for a plan that fulfills it.
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