INSUBCONTINENT EXCLUSIVE:
Fixed income instruments are ideal for risk-averse investors, say experts.Diwali is considered to be the most auspicious time for making
People invest, buy properties, trade in equities and engage in financial transactions around Diwali
For people who are aggressive investors, investment in equities is a top bet
Investment in fixed deposits (FDs), public provident fund (PPF), recurring deposit, national savings certificates (NSC), and Kisan Vikas
Patra (KVP) may be considered by investors looking to make safe returns.Here are five investment ideas that guarantee safe returnsFixed
deposits (FDs): FDs are secure instruments that guarantee pre-determined returns
FD interest rates are decided on the basis of the tenor of the instrument
Leading banks like State Bank of India (SBI), HDFC Bank, ICICI Bank and private lenders such as Yes Bank and Kotak Mahindra Bank offer FDs
Usually small finance banks offer higher returns on FDs than larger peers
FD accounts can also be opened in post offices.Public Provident Fund (PPF): PPF is a long-term investment scheme which comes under the
exempt, exempt, exempt (EEE) status
This means that returns are exempt from tax, the maturity amount is tax-free and the main investment qualifies for a deduction under section
80C of the Income Tax Act
fetch an annual return of 8 per cent
PPF accounts can be opened d in banks and post offices.Recurring Deposits (RDs): Instead of depositing a lump sum amount, RDs require
RDs help customers build on their savings in small, regular pay-outs
RDs do not offer any income tax benefit
RD accounts can be opened in banks as well as in post offices.National Savings Certificates (NSCs): NSC certificates, which mature in five
years, can be purchased from post offices
Interest rates on NSCs are fixed at 8 per cent per annum for the quarter ending December
For example, if you a purchase an NSC certificate of Rs 100, it grows into Rs 146.93 after five years
NSC deposits qualify for deduction under Section 80 C of the Income Tax Act.Kisan Vikas Patra (KVPs): KVP certificates, which mature in 2.5
years, can be purchased from post offices
For the quarter ending December, KVP certificates are offering a return of 7.7 per cent per annum
At this rate, the amount invested doubles in 112 months (nine years and four months), says India Post.
