Best Investment option: In the last few years, the popularity of SIP has increased rapidly. The reason for this was the one-sided rise in the market and investors seeing huge returns. Now when the market has fallen drastically, investors are worried.
The mutual fund in which they have been doing SIP for the last 4 years has given negative returns. That means the returns have ended and there is a loss in the principal as well. If you are also among those investors, then it is important for you to understand that SIP is not the only option in the market. By investing in fixed return investment products, you can not only keep your money safe but can also get a fixed return. Let’s take a look at the investment products available in the market other than SIP and mutual funds.
Fixed Deposit (FD)
Fixed Deposit (FD) is an evergreen product for investors who want low risk and fixed returns. The risk in this is almost negligible and the return is fixed. There are many other benefits of FD. You can withdraw it anytime if needed. Banks also provide loan facility on FD. There is also relief in income tax. You can choose the duration of FD as per your need. You can withdraw money from this whenever you need it.
Public Provident Fund (PPF)
PPF is a popular savings scheme in India. Currently, PPF is offering interest at the rate of 7.1%. This saving scheme is completely safe with government guarantee. The maturity period of PPF is 15 years which can be extended for five more years. By investing in PPF, tax exemption can also be availed under section 80C of Income Tax.
Recurring Deposits (RD)
Recurring Deposit or RD is a savings plan offered by banks and post office that allows small investors to deposit a fixed amount at regular intervals for a fixed period. RD is considered a safe investment plan, ideal for individuals looking for short-term investment avenues. If you want to run an RD account, then RD account can be opened in any bank or post office in the country. The post office is offering an annual interest of 6.7 percent on 5-year RD. If you do an RD of Rs 5000 every month in the post office, then your total investment in 5 years will be Rs 3,00,000. At an interest rate of 6.7 percent, after 5 years you will get a total fixed amount of Rs 3,56,830. This includes interest of Rs 56,830.
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