Outlook Money
FDs are low-risk investment instruments that offer attractive interest rates and guaranteed returns.
Mutual funds are valuable instruments for wealth building, offering both long- and short-term returns.
PPF has a 15-year lock-in and provides steady income, attractive interest rates, tax benefits, besides a premature withdrawal facility.
Physical gold, Gold ETFs, SGBs, and Gold mutual funds are suitable for risk-averse investors seeking modest returns.
REITs allow investors to own real estate in units traded on the stock exchanges and gain from rental income and capital appreciation.
ELSS schemes have three-year lock-in and provide capital appreciation and tax benefits under Section 80C of the Income-tax Act.
NPS offers Tier 1 and Tier 2 accounts; the former offers tax relief up to Rs 2 lakh in a financial year for contributions, and the latter works as a regular investment plan.
Corporate FDs offered by NBFCs carry slightly higher risks than bank FDs but provide higher interest rates, so thoroughly evaluate the company's creditworthiness.
Compiled By Himani Verma