Safe Investment Options

August 17, 2016 Finance Talk Valli Sarvani No comments

Many investors are interested in safe investments. Safe investments make sure you don’t lose your capital. This is the reason many chose not to invest in risky instruments like equities, equities mutual fund.

When you are investing, here are certain things you need to consider. Look at the Investment Horizons, Liquidity, and Taxation. Here are some of the best safe investment instruments available in India.

Bank Fixed Deposits

Bank fixed deposits are probably the most common financial instrument invested in. The interest gained on these investments tend to range from 6.6 to 7.5 per cent depending on the bank. The returns you gain on these deposits are taxable based on your tax slabs. If it exceeds Rs. 10,000 in a year, then it will be taxed as per tax slabs.

Recurring Deposit

Recurring deposits are also very common. They give investors regular monthly income. It is good for savings as well. TDS is also applicable on interest on recurring deposits now. Just like with bank deposits, TDS is applicable for sums of over Rs 10,000.

Public Provident Fund

Public Provident Fund (PPF) is a favorite among many conservative investors. It has many advantages. The interest gained on PPF is not taxable. You will also get tax benefits under Sec 80C of the Income Tax Act. This makes it useful for retirement funds.

Monthly Income Scheme

Monthly income scheme is by post office. It is a low risk option with decent returns. It is quite common for senior citizens or retired employees.

Sukanya Samriddhi Account

Sukanya Samriddhi Account is made for promotion of girl child education. It can be opened at post offices and commercial banks. The account also offers tax benefits under Sec 80C of the Income Tax Act.

Debt Mutual Funds

Debt mutual funds have the advantage of giving you higher returns than bank deposits. This is because, some of the money is parked into equities.

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