Investors in India have shown a special interest for small saving schemes, whether through Post Office schemes or other non-linked investment options offered by banks.
Undoubtedly, Systematic Investment Plans (SIPs) in mutual funds have experienced remarkable growth over the years, overshadowing other investment avenues, primarily due to their potential for high returns. The country has also witnessed a surge in the number of demat accounts being opened, a clear indicator of the increasing interest of investors in the equity segment.
Read More: Bank FD Vs PPF, Post Office Deposits, Senior Citizens Savings: Which One Offers Highest Returns?
Small saving schemes emerge as top choice
For the risk-averse investors who seek stability amidst market fluctuations, small saving schemes emerge as the top choice. These schemes not only offer consistent returns on investment, even during the challenging times of the Covid pandemic, but they also benefit from periodic interest rate hikes by the government. Furthermore, the assurance of government backing adds an extra layer of security.
In a special segment of ET NOW Swadesh’s ‘Investment Tips,’ Prasad Sawant, Advisory Head at IIFL Securities, has recommended a range of investment options for substantial returns. These include the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), Fixed Deposits (FDs), Bonds, and Mutual Funds (MFs).
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How to Become a crorepati with PPF investment?
Your PPF investment, returns & maturity are all tax free as it comes under EEE category.
Monthly Investment – Rs 12,500
Current rate of interest (p.a.) – 7.1%
Invest for a period of – 25 years
Invested – Rs 1.5 crore
Interest – Rs 2.5 crore
Maturity Amount – Rs 4 crore
Read More: NPS: What is PRAN? How can I generate it online?
Sawant also recommended Kisan Vikas Patra, National Saving Certificate, Post Office Times Deposit Scheme, Senior Citizen Savings Scheme and Post Office Monthly Income Scheme among others.
Sawant also recommended FDs and RDs, however, they are not entirely tax-free. FDs above Rs 40,000 interest, 10 per cent TDS is deducted.
