Investment options available in India are divided into a few categories such as:
- Bank Deposits
- Mutual Funds
- Stocks
- Savings Plan
- Insurance
Bank Deposits are of 2 types Savings Accounts and Fixed Deposits
Mutual Funds mainly consist of Money Market Funds, Bond Funds, Stocks Funds, ELSS (Equity Linked Saving Schemes)
Stocks are investments in Company shares and the Bullion market
Insurance happens to be Life and Unit linked insurance
Savings plans include Saving Schemes, PPF and NPS
In this short post, I will only discuss about these Saving Plans.
My emphasis in this video is on these Saving plans.
Saving Schemes have various options such as Monthly Recurring Deposits – A plan where you invest a small amount monthly, Monthly Income Schemes – In this plan certain amount is invested and you get a return monthly, National Savings certificates – In this scheme, a lumpsum amount is invested for a period of 8 years and Kissan Vikas Patra – This also similar to National Savings Certificate, however, these are open-ended certificate which is not issued in the specific name so are the riskiest investment. There are some specific schemes like Senior Citizen Savings Scheme for Senior citizens and Sukanya Samridhi Account for girl child welfare. Then we have Public Provident Fund, which is a long-term savings plan for private company employees and self-employed persons. Also recently Govt has also introduced a National Pension System for pensions for private company employees and self-employed persons as they don’t have the backup of govt pensions in old age.
In my future videos, I will share the detailed benefits of these schemes
Thanks a lot, dear friends
