10 Savings Cum Investment Plans You Should Consider

1. Mutual Funds (MF)

• Mutual funds are financial vehicles that allow you to diversify your portfolio by investing in stocks, bonds, and real estate.
• This is an excellent alternative for people who want to diversify their risk and earn big returns over time.
• Mutual funds are the greatest savings option for beginners who have no prior knowledge of the market.
• In India, several fund firms offer a diverse range of funds for investors with varying risk appetites.
• Investors can also invest in mutual funds through SIP (Systematic Investment Plan) on a monthly or quarterly basis.

2. Equity Linked Savings Scheme (ELSS)

• ELSS funds are a kind of mutual fund that invests in stocks.
• It provides tax advantages as well as the possibility of significant returns, making it an excellent choice for anyone wishing to increase their money over time.
• With a three-year qualifying term and minimal maintenance costs, it's not just about saving money, but also about ensuring that your investment grows.
• This is a tax-saving fund that offers tax benefits up to 1.5 lac under Section 80c of the Indian Income Tax Act, 1961.

3. Fixed Deposit (FD)

• A fixed deposit is a type of savings plan in which you invest your money for a set period of time and receive a set return.
• It is simple to liquidate FDs. They are the most effective way to save for an emergency fund.
• For ordinary residents, the rate of interest on FDs ranges from 2.8 percent to 6%.
• Senior persons, on the other hand, can earn up to 7 percent interest in some institutions.
• This is an excellent choice for people seeking security and assured profits.

4. Post Office Savings Scheme (POSS)

• The Indian post office offers this plan, which provides tax benefits as well as substantial investment returns. It's an excellent choice for people seeking a secure and consistent savings strategy.
• The minimum deposit required to start a post office savings account is Rs 500. Accounts can be opened in single or joint ownership by both persons residing at the same location, as well as their respective family members including their spouse.
• The saving scheme offers a 4% p.a Interest rate.

5. Sukanya Samriddhi Yojana (SSY)

• The government offers this scheme to encourage parents to put money aside for their daughters' education and marriage.
• The plan provides tax advantages as well as high returns, making it an excellent choice for parents who want to put money down for their children's future.
• Sukanya Samriddhi Yojana accounts are solely available to girls. The maximum age of a girl kid should not exceed ten years.
• The scheme is currently offering 7.6% per annum as of 2022.

6. Gold Savings Scheme

• This plan allows you to invest in gold and provides a number of tax advantages as well as the possibility of big profits.
• It's an excellent choice for people who want to secure their money against inflation and market volatility.
• Many jewellers provide a gold savings plan in which you pay a set number of monthly instalments and the jeweller adds a bonus at the end of the period.

7. National Pension Scheme (NPS)

• This scheme is geared at retirement savings and has a number of tax advantages as well as the potential for large profits. It's a fantastic choice for people wishing to put money aside for their golden years.
• Pension money accumulates over time with a compounding impact till retirement.
• As a result of the low account maintenance costs, the subscriber's cumulative retirement wealth benefit grew over time.

8. Unit Linked Insurance Plans (ULIPs)

• ULIPs are insurance plans that combine the possibility of significant profits with the security of life insurance coverage.
• They're a terrific choice for people seeking a savings plan with both security and opportunity for development.
• ULIPs are also designed to assist you to maximise your profits by allowing you to move money across funds.

9. Child investment plans

• These schemes allow parents to save for their children's education and other future needs.
• It provides tax advantages as well as significant returns, making it an excellent choice for parents who want to secure their children's future.
• These schemes are the most effective savings strategies for protecting your children's future.

10. Senior Citizen Saving Scheme (SCSS)

• This scheme is designed for retirees and offers tax advantages as well as significant investment returns. It's one of the smartest ways to park your money aside for retirement.
• You may start with as little as Rs 1000 and go up to Rs 15 lakh.
• The scheme is currently offering 7.4% per annum.