Public Provident Fund
The public provident fund (PPF) is a small savings scheme regulated by the government. It is one of the safest fixed-income investments and enjoys the sovereign backing of the government. PPFs can be an excellent investment option if you want a higher return than FD investments or other fixed-income investments from banks. With a lock-in period of 15 years, it is a good option for those looking for long-term financial goals, such as retirement investment. If you are in the 3 to 6 years following the opening of your PPF account, you will be able to take out a loan against the balance if certain conditions are met. During a financial crisis, it can be beneficial to you. National Savings Certificate In any Indian post office, you can invest in a National Savings Certificate (NSC), an investment that provides you with a fixed income similar to an FD investment. It is a popular small saving scheme that guarantees a high return and can be used as a retirement investment. It has a five-year lock-in period. If you need cash in an emergency, you can apply for a loan against your NSC. Bank Fixed Deposits FD investment offers a certain interest rate guaranteed for a specific period while protecting your capital. There is a lock on the interest rate for your assets, and you do not have to worry about market fluctuations. The interest rate on bank FDs can be lower than that of personal loans and credit cards, and you may be able to take out a loan against them. The tax deduction you receive on your investment in a tax-saving FD can also amount to up to Rs 1.5 lakh per financial year. It is important to note that tax savings FDs have a 5-year lock-in period. Mutual Funds Investing in mutual funds to achieve your financial goals is possible based on your risk tolerance level. There are various investment funds based on the investment objectives, including equity, the mix of stocks and fixed income, debt, gold, and real estate. It is essential to realize that there are different types of mutual funds, and you can choose an investment depending on your investment needs and risk profile. A hybrid fund, which invests in a mix of equity and debt instruments, could also be an option for you to consider. In addition, it can provide a cushion against adverse stock market movements and enhance your portfolio's overall returns over time.
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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