Investing in the stock market and mutual funds can be profitable, but it comes with risk. If you want safe and steady returns, these schemes are ideal:

🔹 1. Public Provident Fund (PPF)

· Safety: 100% government-backed

· Returns: Around 7–8% per year (tax-free)

· Tenure: 15 years (extendable)

· Benefits: Tax-free interest and principal under Section 80C

· Why it’s good: Your wealth grows safely with compounding, and you can even start a PPF account for your children

🔹 2. Kisan Vikas Patra (KVP)

· Safety: Government-backed small savings scheme

· Returns: Doubles your investment in ~10 years depending on current rates

· Tenure: Varies based on rates

· Benefits: Guaranteed returns, no market risk

· Why it’s good: Ideal for long-term wealth creation with full security

🔹 3. National Savings Certificate (NSC)

· Safety: Backed by the government

· Returns: Around 6–7% per year (compounded annually)

· Tenure: 5 years

· Benefits: Eligible for tax deduction under Section 80C

· Why it’s good: Safe, fixed returns, and good for middle-term goals

🔹 4. Senior Citizens Savings Scheme (SCSS)

· Safety: Government-backed for senior citizens

· Returns: Around 8% per year, payable quarterly

· Tenure: 5 years (extendable)

· Benefits: Tax benefits under Section 80C

· Why it’s good: Perfect for retirees seeking steady income with low risk

🔹 5. Fixed Deposits (FD) in Banks/Post Office

· Safety: High safety, especially in government banks or post office

· Returns: 6–7.5% depending on tenure and institution

· Tenure: Flexible (from 7 days to 10 years)

· Benefits: Option for monthly/quarterly/yearly interest payouts

· Why it’s good: Liquidity options and predictable returns

💡 Pro Tip

Combine PPF, KVP, NSC, and FDs to create a balanced, safe portfolio. This ensures steady wealth growth while minimizing risks, especially during uncertain market conditions.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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Kokila Chokkanathan

31/10/2025 03:07 PM