There is a famous saying that a rupee saved is a rupee earned. However, in today’s day and age, just saving money is not enough. It is equally important to let your money grow as per the financial needs. In case, you are thinking about how to achieve that? Then you don’t need to worry much, as you can make your savings grow easily by simply making investments.Read more
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By making a smart investment, you can multiply your corpus and continue to save more at the same time.
As there is a wide range of short-term and long-term savings plans available in the market, you can choose to invest in one as per your own requirement and suitability. Further in this article, we have discussed in details some of the best investment options and savings plan to make your savings grow.
Bank fixed deposits are considered as the safest option of investment in India. As one of the best saving option, the individuals can choose to invest in bank FD in yearly, half-yearly, quarterly and monthly basis. The interest earned is added to the income of the individual and is taxed as per one’s income slab.
Equity mutual funds are one of the lucrative options of investment for investors who have a high-risk appetite and who want to create corpus over a long-term period along with the benefit of investment returns. In equity mutual funds, the investment is made in equity and equity-oriented investment instrument with an objective to create maximum return on investment. Along with a good return on investment, the investment in equities includes high risk and the ROI totally depends on the market performance of the fund. You can choose to invest in equity with an objective of long-term return.
Debt mutual fund are considered as another beneficial option of investment to make the savings grow. As one of the most lucrative investment option, these funds are best suitable for idividuals who wants to gain steady and regular returns on investment. In debt mutual fund, the money is majorly invested in fixed-interest securities like commercial paper, government securities, treasury bills, corporate bonds, etc. The major objective of making investment in debt fund is to create capital appreciation and receive intrest income.
Introduced by the finance ministry in year 1968, the Public Provident Fund (PPF) is a long term option of investment which provides the benefit of savings and tax return. The major objective of public provident fund scheme is to help the investors to make small savings and provide profitable return on savings. In PPF scheme, the investors can make a minimum annula deposit of Rs.500 and can invest up to maximum Rs.1.5 lakh in a financila year. However, PPF comes with a lock-in period of 15 years and the money invested canbe withdrawn as a whole only after the completion of the maturity period. Every year the value increases and the total sum are evaluated.
You avail tax exemption
The interest and maturity amount is not integrated into the income tax slab
No loan hassles, court attachments or the creditors
It is a very popular certificate which is mostly gained by rural civilians. The minimum investment of Rs 100 is acceptable and there is an option of 5 years or 10 years period for the maturity of the certificate. Every year rate of interest alters depending upon the budget and economy of the country. According to a rate of interest, 100 INR is reevaluated at 8.5% for at least 5 years and for 10 years the rate of interest is 8.8%.
Each year the Indian government fixes a rate of interest of PPF and NSC. However, this has been regarded as the best investment plans for the people who are considered in the poverty section.
This has gained consideration as the best investment plans for those who are above 60 years of age. The rate of interest for the senior citizen savings scheme is almost 9.2% in the current period. So if you are planning to gain better returns by the 5 years of span, then you can invest in this after your retirement.
Tax savings under section 80C applicable
High interest rate is given to the SCCS holder
Interest is paid quarterly if liquidity issues prevail
Hence, this may be known for years as the best investment plans but now people are losing interest because of the taxation issues. The interest which is received quarterly or after a certain said period is integrated into the tax slab
This can be said as the short term investment provision because they offer liquidity. As per the savings account, the MMF is giving higher interest to the account holder. Experts advise people to buy the fund from the market or the online sources for availing maximum benefits in the shortest time period. Even public and private banks are giving the policies and best investment plans in which money market funds are offered.
Various insurance providing companies are giving different money savings plans in which life insurance is also covered. In the saving cum life insurance plan, you will receive the maturity benefits, the sum assured and the bonus amount as per the paid premium cost if you survive till the end of the policy. In case the death of the insured person occurs, then the nominee will receive the assured benefits. There are very rare chances when these types of best investment plans fail or go in loose.
As there are plenty of short and long-term investment options available in the market, it is important to consider the fact that what is the end objective of your investment? Moreover, it is also equally important to decide the time period of your investment. You can make the best investment choices by evaluating how much money you will be required to fulfil the various long and short-term financial goals of life. As you set your long-term objective, you can consider investing in these safe long-term investment options in order to increase your savings grow.
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. Tax benefit is subject to changes in tax laws. *Standard T&C Apply
Past 10 Year annualised returns as on 01-12-2023
^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
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