These are one of the safest investment choices; they have low risk attached and offer guaranteed returns. They have lower return rates (varies across banks) but 5-year FDs offer tax benefits u/s 80C of the Income Tax (IT) Act. The tenure of FDs can vary from as little as 7 days to 10 years.
It is a flexible investment option provided by mutual funds and known for offering good returns. The tenure (lock-in period) for this scheme is 3 years. However, to fetch better returns, it is advisable to stay invested even post that. Along with tax deduction benefits u/s 80C IT Act, an ELSS also boosts your income by investing in the equity market.
They have a steady rate of returns (variable between 6.5% and 8%), primarily due to fixed-interest mutual investments in corporate bonds, government securities, treasury bills, and commercial papers. They are less volatile and less risky in comparison to equity funds. The tenure of debt fund varies from around 3 months to 1 year.
Precious metals are a safe and instantly redeemable investment option, but have a risk factor of market rise and drop attached to it. Avenues include jewellery, gold coins, gold ETFs, and Sovereign gold bonds.
They have a long tenure of almost 15 years. The rate of interest changes each year, the current rate being 7.9% pa. PPF offers tax benefits u/s 80C of the Income Tax Act. Moreover, it is considered as a safe investment option, as it is backed by the Government.
This is a long-term investment plan focused on retirement and is a mix of equity, fixed deposits, corporate bonds, liquid funds and government funds, among others. It has a return rate that varies between 8.5%-11% and also offers tax advantages u/s 80C, 80CCC, and 80CCD of the IT Act.
These are insurance plans that offer dual benefits of investments and insurance. You are not only covered financially but also given an opportunity to save. You can either get a fixed amount when the policy ends or you choose to receive it in instalments throughout the policy period. The tenure of such plans varies from 10 to more than 20 years.
These are also dual-benefit plans that offer growth of money and insurance. However, in these plans; the person insured gets an assured sum at regular intervals, instead of receiving a lump sum at the end of the term. These plans are best suited for individuals who are risk-averse and who prefer to invest through insurance and receive the benefits of liquidity periodically. The average tenure/maturity period for this plan is around 20 years.
This is a good investment plan if you already have a lumpsum amount available to invest and are looking for a regulat payment for lifetime. There are multiple type of annuity plans available in the market from which you can choose as per how you wish to get back your regular payments.
- First job: ELSS, Equity, and term insurance.
- Marriage: Health insurance for self and family.
- Birth of a child, buying a house, child education: ULIPs, savings plan.
- Retirement: Money back plans, Unit linked retirement plans, Immediate annuity plans.
What is the best investment for beginners?
What are the safe investments?
What are the risks involved in investments?
Which is better – short term investment or long-term investment?
How to secure your investments?
Another way to secure your investment is by getting a term plan or insurance. This is important if you have planned your investments for your family or loved ones like – bought a house on loan, invested for a house, car, children’s education, future travel aspirations etc. Such insurance plans provide financial protection and a significant amount of life cover at affordable premium rates. This ensures that in case of an unfortunate event, your family will have the required money to continue the investments which you have planned for them.
Where should I put my retirement money?
^ Amount equal to total of mortality charges and policy administration charges deducted in the policy will be added back to the fund value at maturity, provided all due premiums have been received. This amount will be allocated among the funds in the same proportion as the value of total units held in each fund at the time of allocation. This shall exclude any extra mortality charges and taxes levied on the charges deducted as per prevailing tax laws. Return of Mortality Charges and Policy Administration Charges is not applicable for Whole Life option.
* Tax benefits under the policy are subject to conditions under Sec. 80C, 80D,10(10D) and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.