Relying on savings alone for making your future security is not a good financial habit. Instead, opting for investment options will help you grow over the years. There are several long-term and short-term investment options that you can opt for, considering your goals and risk appetite. Having a good investment plan gives a sense of direction and helps in deciding the best investment strategy that one should follow to meet their financial goals at the desired time. Here is the list of the 5 best investment options one can opt for.
- SIP –
A Systematic Investment Plan , known as SIP, is a facility offered by mutual funds to the investors to invest in a disciplined manner. The fixed amount of money can be as low as Rs. 500, while the pre-defined SIP intervals can be on a weekly/monthly/quarterly/semi-annually or annual basis. SIP leads in maintaining the financial discipline and provides greater flexibility in investing .SIP is a disciplined way of investing and ensures you constantly strive to make your investments grow. It ensures that you are working actively towards making your investments grow because of the periodicity.
- Saving Scheme for Senior Citizens –
Senior Citizens’ Saving Scheme (SCSS) is the most preferred option for retirees. SCSS poses a 5-year tenure, which could be prolonged by three years once the scheme would get matured. The maximum investment limit of SCSS would be Rs 15 lakh and a person can open one account or more. However, the same scheme would be available exclusively for senior citizens or early retirees. This scheme could be claimed through the post office or from the bank, and only people above the age of 60 can claim that.
- Public Provident Fund
The public provident fund (PPF) scheme could be extended infinite times. The same could be opened in a specified post office or a bank branch.PPF can be opened online with those banks that have enabled the online opening features for their customers. A public provident fund is appropriate for those investors who want to avoid the volatility in returns that usually runs in the equity asset class. But taking interest in the long-term plan when the inflation-adjusted target amount is much more than it would be effective to choose equity assets, via equity mutual funds, and ELSS tax saving funds, rather than depending only on PPF.
- Post Office Time Deposit Account (POTD) –
A post office time deposit account (POTD) is for the duration of 1,2,3 and 5 years while the same is exclusively a 5-year deposit that takes advantage of the tax under section 80C.
- National Savings Certificates –
National Savings Certificate (NSC) is a 5-year scheme. NSC does not furnish monthly or yearly interest payout. In addition, interest not reinvested in the last year of the period may qualify for Section 80C benefits for the year in which it is deemed to have been reinvested.
- 5-year notified tax-saving fixed deposits-
Investing in the 5-year notified tax-saving fixed deposits in a bank (a debt tax saver) is a superior decision for people who have lapsed out of the Section 80C limit of Rs 1.5 lakh in a year. These types of deposits would arrive with monthly, quarterly, or cumulative interest payout options on the incurred investment.
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