However, some of these schemes have a lock in period. For example, National Savings Certificate (NSC) has a lock-in period of five years and Public Provident Fund (PPF) has 15 years. Here, we give a lowdown on 6 investing schemes that can keep your capital safe.
6 schemes to stay free of volatility
I. Fixed Deposits (FDs): You can invest in a fixed deposit scheme of a prominent bank – public sector or private. Most banks offer anywhere between 5-6 percent per annum on one-year deposit. Some NBFCs and small finance banks offer relatively higher interest on deposits.
II. National Savings Certificate (NSC): These schemes offer 7.7 percent return. And one can open an account with a minimum contribution of ₹1,000 and in multiples of ₹100. There is no maximum limit of investment.
III. Public Provident Fund (PPF): This is another assured return scheme offering 7.1 percent return on investment. One can invest anywhere between ₹500 to ₹1.50 lakh per annum in a year. However, one thing to note is that it has a lock-in period of 15 years.
IV. Debt mutual funds: Another investment option is to invest in debt mutual funds. These also give assured returns just like fixed deposits. The return could vary widely between the category of scheme – money market, short duration, long duration, liquid and overnight.
V. National Savings Recurring Deposit: Known as one of the small savings schemes, this investment option delivers 6.7 percent per annum. The account can be opened with ₹100 and there is no maximum limit.
VI. Recurring Deposit: Also known as RD, these schemes enable investors to deposit small amount at regular intervals – say every month for earn a higher rate of interest. These accounts can be opened with a bank or post office. National Savings Recurring Deposit Account (RD) gives 6.7 percent per annum.
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