Is there a more secure Investment choice than the one offered by the Indian government? Government schemes and programs are the best options for investors who wish to see their funds grow over time while taking on limited risk. Not only are government plans suitable for low-risk traders, but they are also suitable for investors trying to broaden their portfolios while benefiting from tax deductions.
Many investors want to secure investments with explosive returns as quickly as possible, without the risk of losing the original amount. They seek an investing strategy that will allow them to double their initial investment with little or no risk.
Unfortunately, in everyday life, a low-risk, high-return combo is not attainable. In actuality, profits and risks are precisely related to one other they go hand in hand. This means that the larger the returns, the bigger the absolute risk, and vice versa.
Many people believe that the returns on government schemes are lower than those on personal savings plans, however, this is not the case. Government schemes provide a positive return on investment while posing little or no risk.
Here is a list of the Best Government Schemes that you must consider while investing your funds
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Sukanya Samriddhi Yojana Government (SSY schemes)
The Sukanya Samriddhi Yojana Scheme was established to encourage families to invest in the future of their girls. It was established in 2015 by India’s Pm Narendra Modi as part of the ‘Beti Bachao, Beti Padhao’ mission. Additionally, this program is aimed at minor female children.
From the girl’s childbirth to any period before she becomes 10 years old, and SSY account can be opened in her honor. The lowest investment for this program is INR 1,000 and the highest investment amount is Rs 1.5 lakh annually. However, the Sukanya Samriddhi program is valid for 21 years from the date of its inception.
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National Pension Scheme (NPS)Â
The National Pension Scheme, or NPS, is one of the most well-known Government schemes provided by the Government of India. It is a retirement account plan available to all Indians, but it is compulsory for all government workers. It intends to offer retirement funds to Indian citizens.
This Government scheme is open to Indian residents and NRIs between the ages of 18 and 60. You can invest in stocks, corporate debt, and government assets under the NPS scheme. Investment opportunities ₹ 50,000 are eligible for section 80 CCD deductions (1B). Investment opportunities of ₹ 1,50,000 are exempt under Section 80C of the Income Tax Act.
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Public Provident fund
PPF is also one of the Ministry of India’s ancient retirement programs. The amount invested, the interest received, and the money withdrawn are all tax-free. As a result, the Public Provident Fund is not only secure but can also help you pay taxes.
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The scheme’s official interest rate (FY 2020-21) is 7.1 percent per annum. PPF allows for tax exemptions of ₹ 1,50,000 under section 80C of the Income Tax Act. The investment has a longer duration of 15 years, so the overall impact of tax-free compounding income is enormous notably in the later years.
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National Savings Certificate (NSC)Â
The Government of India has introduced the National Saving Certificate to encourage Indians to save. This scheme has a minimum spend sum of Rs 100 and no maximum investment value.
Each year, the NSC interest rate fluctuates. The interest rate on NSC is 6.8 percent compounded yearly and paid at maturity. Section 80C of the Income Tax Act allows for a tax deduction of INR 1.5 lakh. Only Indian citizens are eligible to engage in this scheme.
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Prime Minister Vaya Vandana Yojana (PMVVY)
Prime Minister Vaya Vandana Yojana, or PMVVY, is a retirement benefit program for elderly individuals over the age of 60. For ten years, the scheme pays a fixed amount with an interest rate ranging from 8% to 8.3%. After acquiring for Rs. 1.5 lakhs, it provides a monthly annuity of Rs. 1000.
Furthermore, after purchasing a top price of Rs. 15 lakhs, the plan pays a monthly income of Rs. 10,000. The scheme provides a credit of up to 75% of the original cost. When an owner dies, they can designate nominees for this program under the conditions of the policy.
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Atal Pension Yojana (APY)
The Atal Pension Yojana, abbreviated as APY, is a social security system provided by the Government of India for those working in unorganized sectors. The program is the ideal alternative for economically disadvantaged parts, as it provides ways to choose a pension plan for a brighter future.
Significantly, it is one of the greatest investment schemes in India for residents age 18 to 40. Depending on the duration and investment payment, investors would get a guaranteed pension sum range of Rs. 1000 to Rs. 5000.
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Pradhan Mantri Jan Dhan Yojana (PMJDY)Â
Pradhan Mantri Jan Dhan Yojana was created to give Indians fundamental financial services such as savings, a deposit account, insurance, and pensions, among other things. The government of India wanted to give the impoverished and needy sections of our society simple entry to financial solutions such as savings and deposit accounts, transfer, healthcare, credit, and pensions.
In this method, the age requirement for a minor is ten years. Alternatively, any Indian citizen over the age of 18 can open this account. Whereas, an individual can only leave this plan after they reach the age of 60.
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Sovereign Gold Bonds
The Govt of India issued Sovereign Gold Bonds in Nov 2015. Its goal is to provide a profitable alternative to owning and saving gold. Furthermore, the program is recognize to fall within the category of Debt fund. Sovereign Gold Bonds, or SGBs, not only aid in monitoring the entire import-export value of a certain asset, but also in assuring transparency.
SGBs are government-backed securities. As a result, they are considered fully safe. The monetary value is expressed in several grams of gold. SGBs have grown in favor among investors since they are the safest alternative to actual gold.
Read More:Â What is a National Savings Certificate (NSC) And How To Invest In It?