Finance Advisior
196 Points
Joined May 2016
1. Fixed deposit: Fixed deposit investment is an evergreen solution. It has been the top choice for individual investors when the investment options were really scarce, and it remains so even when there is an infinite number of investment schemes available in India. The factors that make a fixed deposit so popular are:
- Investment safety: Investment in fixed deposit has very rare chances of depreciation, and it happens only when the inflation rate increases beyond the offered interest rate.
- Fixed sum upon maturity: Investment in the fixed deposit is free from market fluctuations and hence a fixed sum is guaranteed upon maturity.
- Tax saving scheme: Income generated from fixed deposit investment of up to Rs 10000 is non-taxable.
2. Post office schemes: Post office PPF schemes are quite similar to regular FD but they offer a better return on investment compared to the latter. The only drawback for many is, PPF scheme has a lock-in period of 15 years and the complete amount can be withdrawn only after the maturity.
3. Long-term equity-linked scheme: Equity-linked scheme are a bit risky but they are worth a try. If the luck plays on your side, you can expect more than twice the return on investment as compared to any scheme.
You can try these and you can even choose the alternatives Mr Umang and Mr Pawan have suggested.