Savings/Investment Options

It is certainly important to invest and more important to invest wisely. Several saving schemes are provided by public companies and our government. This motivates and encourages individual to earn money while investing it for a specific period.

One must understand various investment plans before starting to invest in a specific scheme. You should plan investments in a manner that savings would suffice your future financial needs.

These are some investment schemes that can meet your future needs:

1. Fixed Deposits (Fixed Deposit)

This is a safe option where in a fixed sum of money is invested for a particular period that helps one to get interest at a fixed rate of return.

2. Public Provident Fund (PPF)

This is a tax free long term government investment scheme in India. The interest earned from the said fund is also not taxable. Here money gets invested for a term of 15 years where this term can be further extended for another 5 years. Compound interest earned on this investment is about 7.90%. Minimum yearly investment is Rs.500 and maximum is Rs. 1, 50,000.

3. National Savings Certificates (NSC)

This investment is a popular government backed saving scheme that can be done for a term of 5 years from any post office. NSC interest rates are fixed and revised every quarter by the government. The minimum investment for this scheme is Rs. 500 with no upper limit of investment.

4. Mutual Funds

This is a good option to invest for benefits in equities and debt fund. This also aids to balance risk and returns based on one’s preference. Rather than directly investing in stock trading this is a better option.

5. Equity Linked Saving Schemes (ELSS)

This is a mutual fund with tax benefits. When one invests in ELSS scheme one can avail of tax deduction upto Rs. 150000/- under section 80C that comes with a lock in period of 3 years. In ELSS all investments are made in equity funds so this can aid to beat inflation.

One can benefit tremendously with the help of these saving schemes. R.S. Financial services can help you to get useful tips and resources that will equip you to invest in several small saving plans. For more information visit www. rsfinanceservices.com.

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