1. Public Provident Fund (PPF)
Those planning to invest in the scheme should keep one thing in mind because the scheme comes with an initial lock-in period of 15 years.
- The scheme is currently offering an interest rate of 7.1 percent per annum
- 15 years lock-in period
- PPF falls under the Exempt-Exempt-Exempt (EEE) category
- Central government scheme
- It’s a risk-free investment scheme
Note: The contribution of PPF is tax-deductible & Maturity returns are also tax-free.
2. Sukanya Samriddhi Yojana
Sukanya Samriddhi Account is a Government of India-backed saving scheme that targets the parents of girl children and encourages parents to build a fund for the future education and marriage of their female child.
- Government of India-backed saving scheme
- It is currently offering an interest rate of 7.6 percent per annum
- The maturity period is 21 years from the account opening or upon her marriage after completing 18 years
Note: The contribution of Sukanya Samriddhi Account is tax-deductible & Maturity returns are also tax-free.
3. Unit Linked Insurance Plans (ULIPs)
These are life insurance plans for long-term investors with a wide range of investment features – some unique ULIP features include multi-fund allocation, automated portfolio management, and goal safety.
Note: The contribution of ULIP is tax-deductible & Maturity returns are also tax-free.
4. Equity Linked Savings Scheme (ELSS)
The contribution of ELSS is tax-deductible.
An individual planning to invest in Equity Linked Savings Scheme should keep one thing in mind capital gains from ELSS up to Rs one lakh in a financial year are tax-free, whereas capital gains over Rs. One lakh are subject to long-term capital gains tax of 10%.
5. Employee Provident Fund (EPF)
Employee Provident Funds, also known as EPFs, are government-sponsored retirement plans that fall under the Exempt-Exempt-Exempt (EEE) category.
The contribution of EPF is tax-deductible & The maturity amount is tax-free but only on the completion of 5 years.