NPS, PPF, Fixed Deposit: Top 5 investment plans that will give you financial stability

Whatever investment plans you choose, remember that the most important thing is to start investing early and regularly.

New Delhi: Building a home is similar to investing for long-term financial security. You need a strong foundation (a secure investment strategy) to achieve your long-term goals, including a roof over your head. Like a home, your investment plan should be tailored to your individual goals and available budget.

The following five investment techniques can help you build a solid foundation for financial security:

National Pension Scheme

Currently, one of India’s top high-return, low-risk investments is the National Pension System (NPS). The NPS is a long-term retirement-oriented savings program set up by the Government of India under the Ministry of Finance.

The plan poses much less danger because it is backed by the Indian government. Meanwhile, returns are market-based and can range from 8% to 12% or more, according to a report in Bajaj Finance.

Public Provident Fund

The Public Provident Fund (PPF), another long-term savings alternative backed by the Government of India, is an easy and hassle-free investment choice with high returns and low risk. You are required to make a minimum contribution under this plan of Rs 500 in any given fiscal year. There is also a maximum contribution limit of 1.5 lakh rupees per fiscal year, the report said.

Gold

Since the beginning of time, gold has stood for wealth. It still hasn’t lost its appeal as an investment choice that can outperform inflation. The yellow metal is traditionally purchased in physical form as gold. However, it has disadvantages such as additional production, design or storage costs. You can buy gold through mutual funds and ETFs to get around these restrictions, according to a report in ET Money.

Unit-Linked Insurance Plans (ULIPs)

Unit-Linked Insurance Plans (ULIPs) combine life insurance and investing. To build wealth over the long term, part of your premium is invested in assets such as bonds and stocks. Your premium also includes a part for the life insurance policy.

However, ULIPs have a history of exorbitant fees. However, new ULIPs do not have such high costs. However, they have a 5-year lock-in period, the report added.

Post Office Fix Deposits

Post offices offer FDs, like banks. You can deposit your money for short to medium terms with these investment options, also known as National Savings Term Deposits. Because they generate higher returns than banks, National Savings Time Deposits have an advantage over them. And that too without added risk because the Indian government supports these programs, the report added.