As Human beings we all are the same and so are our ambitions, desire for growth and pursuit of a secure future. It’s never too late to plan for an investment. H.W. Lewis had stated that, “Those who are unwilling to invest in the future haven’t earned one.” We always tend to procrastinate when it comes to our investment plans but the best time for it is right now! A way to save you from the burden of taxes, investment can be your savior in your present as well as future.
Let’s check these few investment options which can give you high returns.
1. Public Provident Fund (PPF):
This investment is my personal favorite due to its attractive fixed income option and an interest rate of 8.7% as of 2014.
A minimum deposit of Rs. 500 to a maximum of Rs. 1.5 lakhs can be made to the PFF account.
PFF has a lock in period of 15 years after which the matured amount can be withdrawn along with the interest, all of which is tax-free.
2. Equity-Linked Savings Scheme (ELSS):
Equity-linked savings scheme are offered by mutual funds. They are high risk investments as it is market linked, but they also have potential to give high returns.
It has only 3 years of lock in period which is considerably short.
3. National Pension Scheme (NPS):
Planning for your future and retirement is inevitable. National Pension Scheme by the Indian government allows you to plan for your retirement. A Tier-I NPS account allows tax-exemption with a minimum investment of Rs. 6000 per year to a maximum limit of 1 lakh.
Any withdrawal can be made only after you turn 60.
4. Fixed Deposit (FD):
Fixed Deposits have been very popular form of investment due to its safe nature and high interest yielding returns.
Tenure to create an FD can range from 7 days to 10 years.
Loans can be availed against the FDs. And tax is exempted until the interest returns on the FDs reaches Rs. 10,000 in a year.
5. Life Insurance:
Life insurance policy involves a payment of the designated sum of money upon death or illness of the insured person.
Upper limit of 1 lakh per annum is available for tax deduction with returns not taxed as well.
However the premium paying aspect of the investment can be a hassle with the lapse of the policy upon one missed premium.
6. Home Loans:
A home loan maybe huge but it entitles you with two benefits.
One, it helps you with tax deduction of up to 1 lakh a year
Two, it provides you with an ‘Appreciating Asset’ in the form of a property.
Below are the investments along with the interest rates, as per the financial year 2014.
While a few investment types are listed here there are many other ways you can save your penny for the rainy day.