Published: 02nd Aug 2024
By: Value Research
ULIPs are hybrid investment products that combine term insurance and investments. However, they fare quite poorly in terms of transparency, liquidity, returns and coverage.
Launched in 2015, SSY is a tax-free small savings scheme for the girl child. The scheme offers an annual interest rate of 8.2%, and has a tenure of 21 years. Parents or legal guardians of a girl child aged 10 years or below are eligible to open an SSY account.
The NSC is a government-backed small savings instrument that combines tax savings with guaranteed returns. It requires a minimum investment of Rs 1,000 per annum and has a five-year lock-in period. Presently, the interest on NSC is 7.7%, compounded annually.
It is a long-term savings instrument established by the Government of India. To open a PPF account, you need a minimum investment of Rs 500 and a maximum of Rs 1.5 lakh per annum. It offers an interest of 7.1%, compounded annually and has a tenure of 15 years, that can be extended in blocks of five years upon maturity.
NPS is an initiative by the central government to extend pension benefits to all Indian citizens. It is a long-term investment avenue that helps you on two fronts. One, it can build a sizable retirement corpus. Two, it helps you save additional tax.
ELSS funds are a type of equity scheme that have a three-year lock-in period. It is one of the few tax-saving instruments that can help investors earn inflation-beating returns in the long run.
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