Top investment and Saving schemes in India

Saving money is important, but investing your savings is more important. Here are some popular savings schemes to invest in India.

An investor in India has many investment options today. Government-backed plans, such as the Employees' Provident Fund (EPF), Public Provident Fund (PPF), and National Pension Scheme (NPS), are secure investments because they are backed by sovereign money. Fixed deposits (FDs) and recurring deposits (RDs) are just as safe, and work perfectly for investors with a low risk appetite.

The following is a list of the best savings schemes in India you can invest in today.

Equity Linked Savings Scheme (ELSS)

When compared to PPF and other investing schemes, ELSS offers greater return. That makes it a strong contender for the title of the best savings scheme in India. It is a tax-advantaged mutual fund that allows you to save money on taxes under Section 80C. It has a shorter lock-in period of three years, and any earnings exceeding ₹1 lakh are taxed at 10% as LTCG (long-term capital gain). ELSS provides the same returns as stocks, which is expected to be around 12% in the future.

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Tax Saving Fixed Deposit

A tax-saving fixed deposit is an alternative to consider if you're searching for a reasonably low-risk, safe investment choice. In any fiscal year, you can claim a maximum tax deduction of ₹1.5 lakhs under section 80C of the Indian Income Tax Act of 1961. If you choose to invest your savings in a tax saving fixed deposit at IDFC FIRST Bank, you can enjoy high interest rate, which maximises your profit.

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Equity Mutual Funds

Equity mutual funds, as the name implies, invest largely in equity. 65% of an equity mutual funds’ assets must be invested in stocks and other types of securities, according to the Securities and Exchange Board of India (SEBI) regulations. An equity mutual fund is professionally managed by a fund supervisor, who makes investment decisions based on market capitalisation and other business fields. Because the assets are mostly traded on stock exchanges, they are riskier, although the reward is high as well. The average rate of return is predicted to be 12%, depending on the mutual funds you choose to invest in.

National Pension System

NPS is a long-term financial programme geared towards retirement. The Pension Fund Regulatory and Development Authority (PFRDA) manages the NPS. According to the investor's preferences, the fund invests in stocks, bonds, fixed deposits, liquid funds, government bonds, and so on. You can determine what portion of your money can be placed in equities through this programme.

The minimum yearly payment for an NPS Tier-1 account to stay active is ₹1000. The collected interest in this programme is tax free. Because this program matures only when the investor reaches the age of 60, the lock-in duration is determined by the investor's present age. You can only remove 60% of the tax-free amount once you have turned 60.

The remaining 40% of the fund is meant for regular pension. As of August 2019, the average return for NPS over the last three years has been approximately 8.5%, and over the last five years, it has been over 11%. Because of high rate of return and its viability, NPS has often been termed the best savings scheme in India.

Public Provident Fund

PPF is among the best savings schemes in India, as it is a safe investment tool that helps you in the long term. You can start a PPF account with a post office or a bank. For 15 years, the money invested is locked in. After 6 years, you can only access a portion of the money in your PPF account. Because PPF is a long-term investment, you can prolong the term of your investment for an extra five years once the 15-year period has passed. You get compounded interest on your cumulative profits when you invest in a PPF.

While the investment tools mentioned here are among the best savings schemes in India, you can also invest in other schemes. If you are in the market for an investment that will get you the best returns, you can head to the IDFC FIRST Bank website, where you will find be able to choose from the best of the best savings schemes in India. From mutual funds and insurance to senior citizens savings scheme (SCSS), you can invest in any instrument through IDFC FIRST Bank. APPLY NOW!

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