Most investors wish to ensure investments such that they are able to obtain sky-rocketing returns as early as possible without having the risk of obtaining losses on the principal amount. This is the reason why most of the investors keep looking for top Investment plan through which they can consider doubling the overall investment with minimal or no risk.
However, unfortunately, a low-risk and high-return combination is not possible in a real life scenario. On grounds of reality, returns and risks tend to be directly proportional to each other –going hand in hand. This implies that higher the returns, the higher is going to be the overall risk, and vice versa.
When you are selecting some investment avenue, you are required to match your own risk with the risks involved in the given product before you make the investment. You can come across some investments featuring higher risks. However, these also reveal the potential to yield higher returns that are Inflation-adjusted in comparison to other asset classes on a long-term basis.
Sukanya Samriddhi Yojana (SSY)
Sukanya Samriddhi Yojana Scheme was launched with an aim to encourage parents to secure the future for their daughters. This scheme was launched in the year 2015 by The Prime Minister of India Narendra Modi under the ‘Beti Bachao, Beti Padhao’ campaign. This scheme is targeted towards the minor girl child. SSY account can be opened in the name of the girl from her birth to any time before she turns 10 years old. The minimum investment amount for this scheme is INR 1,000 to a maximum of INR 1.5 lakh per year. Sukanya Samriddhi Scheme is operative for 21 years from the date of opening.
National Pension Scheme (NPS)
National Pension Scheme or NPS is one of the famous schemes offered by the Government of India. It is a retirement saving scheme open to all Indians, but mandatory for all government employees. NPS aims to provide retirement income to the citizens of India. Indian citizens and NRIs in the age group of 18 to 60 can subscribe to this scheme. Under the NPS scheme, you can allocate your funds in equity, corporate bonds, and government securities. Investments made up to INR 50,000 are liable for deductions under section 80 CCD (1B). Additional investments up to INR 1,50,000 are tax-deductible under Section 80C of the income tax Act.
Public Provident Fund (PPF)
Public Provident Fund or PPF is also one of the oldest retirement schemes launched by the Government of India. The amount invested in this scheme, interest earned and the amount withdrawn is all exempt from tax. Thus, the Public Provident Fund is not only safe but can help you save Taxes at the same time. The current interest rate of the scheme (FY 2020-21) is 7.1% p.a. In PPF, one can claim tax deductions up to INR 1,50,000 under section 80C of the Income Tax Act. As PPF tends to feature a longer tenure of 15 years for investment, the overall influence of compounding interest that is tax-free tends to be significant especially during the later years. Moreover, as interest gets earned and the invested principal gets backed by the respective sovereign guarantee, it is known to make up for a safe investment. It is important to note that the overall rate of interest on PPF gets reviewed every quarter by the Indian Government.
National Savings Certificate (NSC)
National Saving Certificate or NSC is launched by the Government of India to promote the habit of savings amongst the Indians. The minimum investment amount for this scheme is INR 100 and there is no maximum investment amount. The interest rate of NSC changes every year. For FY 17-18 the interest rate of NSC is 6.8% p.a. One can claim a tax deduction of INR 1.5 lakh under Section 80C of the Income Tax Act. Only residents of India are eligible to invest in this scheme.
Atal Pension Yojana (APY)
Atal Pension Yojana or APY is a social security scheme launched by the Government of India for the workers in the unorganized sector. An Indian citizen in the age group of 18-40 years with a valid Bank account is eligible to apply for APY. Atal Pension Yojana is launched to encourage individuals from the weaker section to opt for a pension, which would benefit them during their old age. The scheme can also be taken by anyone who is self-employed. One can enroll for APY with your bank or post office. However, the only condition in this scheme is that the contribution must be made until the age of 60. Pradhan Mantri Jan Dhan Yojana (PMJDY)
Pradhan Mantri Jan Dhan Yojana or PMJDY was launched to provide basic banking services like a Savings Account, deposit account, insurance, pension, and so on, to the Indians. The government of India aimed to provide easy access to financial services such as Savings and Deposit Accounts, Remittances, Insurance, Credit, Pension to the poor and needy section of our society. The minimum age limit in this scheme for a minor is 10 years. Otherwise, any Indian resident over the age of 18 years is eligible to open this account. An individual can only exit this scheme after reaching the age of 60 years.
PMVVY or Prime Minister Vaya Vandana Yojana
This investment scheme is meant for senior citizens aged above 60 years of age. The given scheme is known to offer them a guaranteed return of around 7.4 percent per annum. The scheme offers access to a pension scheme that is payable on a monthly, annually, and quarterly basis. The minimum amount that is received in the form of pension is INR 1000.
Sovereign Gold Bonds
The Sovereign Gold Bonds were introduced by the Government of India in November 2015. The given investment scheme by the Government of India is aimed at offering the investors a lucrative alternative to own and save gold. Moreover, the given scheme is known to belong to the category of Debt fund. Sovereign Gold Bonds or SGBs not only help in tracking the overall Import-export value of the given asset but also helps in ensuring transparency throughout. SGBs refer to government-based securities. Therefore, these are regarded as completely safe. The respective value gets denominated in multiple grams of gold. As it serves to be the safest substitute for physical gold, SGBs have witnessed immense popularity amongst investors.