#best post office pomis scheme

[investmentadvisor01]

Securing Your Tomorrow: The Complete Guide to Investing in LIC and Post Office Schemes

When it comes to securing your financial future, Life Insurance Corporation (LIC) and Post Office Schemes stand out as two of the most reliable options available in India. As an investment advisor in Prayagraj and a seasoned LIC Agent in Prayagraj, I have seen firsthand the benefits these LIC schemes and Post Office schemes offer. With a history of stability and a range of products designed to meet various needs, these schemes offer a blend of security and growth. This guide will walk you through the essentials of investing in LIC and Post Office Schemes, helping you make informed decisions..

Why Choose LIC and Post Office Schemes? :

Trust and reliability are paramount when choosing where to invest your money. As an investment advisor in Prayagraj, I can confidently recommend LIC schemes and Post Office schemes. LIC, being a government-owned entity, has a long-standing reputation for trustworthiness and reliability.

Similarly, Post Office schemes are backed by the government, ensuring a high level of security for your investments. Both LIC and the Post Office offer various products catering to different financial goals and timelines.

Whether you're looking for life insurance, retirement plans, or short-term savings options, there's a scheme that fits your needs. Additionally, these schemes provide attractive returns. 

LIC policies often come with bonuses, while Post Office schemes offer assured returns, often higher than traditional savings accounts. For reliable and comprehensive LIC Agent service in Prayagraj, look no further.

Key LIC Products to Consider :

1. Endowment Plans: These plans combine insurance coverage with savings. They are ideal for those looking to build a corpus over a period while enjoying the benefits of life cover.

2. Term Insurance: For those seeking pure risk cover, term insurance is the best option. It offers high coverage at low premiums, ensuring financial security for your dependents in case of your untimely demise.

3. Pension Plans: LIC’s pension plans help you plan for a financially secure retirement. By investing regularly, you can ensure a steady income post-retirement.

4. ULIPs (Unit Linked Insurance Plans): ULIPs offer the dual benefit of insurance and investment. Part of your premium is invested in the market, potentially yielding higher returns, while the rest provides life cover.

Key Post Office Schemes to Consider :

1. Post Office Monthly Income Scheme (POMIS): Ideal for those seeking a regular income, POMIS provides a fixed monthly return, making it a perfect choice for retirees or those needing consistent income.

2. Public Provident Fund (PPF): PPF is a long-term savings scheme with tax benefits. It offers attractive interest rates and the security of government backing.

3. National Savings Certificate (NSC): NSC is a fixed-income investment offering tax benefits. It’s suitable for risk-averse investors looking for safe and guaranteed returns.

4. Sukanya Samriddhi Yojana (SSY): Aimed at the welfare of the girl child, SSY offers high interest rates and tax benefits, helping parents build a substantial corpus for their daughters’ future education and marriage.

How to Choose the Right Scheme :

1. Assess Your Financial Goals: Determine your short-term and long-term financial objectives. Are you saving for your child's education, a house, or retirement?

2. Risk Tolerance: Understand your risk appetite. LIC policies are generally low-risk, while ULIPs involve market-linked risks. Post Office Schemes are highly secure but may offer slightly lower returns compared to market-linked products.

3. Tax Benefits: Consider the tax implications of each scheme. Many LIC policies and Post Office Schemes offer tax deductions under Section 80C of the Income Tax Act.

4. Liquidity Needs: Evaluate your need for liquidity. While some schemes like POMIS offer regular returns, others like PPF have a lock-in period.

Conclusion :

Investing in LIC and Post Office Schemes can be a prudent choice for securing your financial future. They offer a blend of safety, reliability, and attractive returns, making them suitable for a variety of financial goals. By carefully assessing your needs and understanding the features of each scheme, you can make informed decisions that align with your financial aspirations. Secure your tomorrow by investing wisely today.

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Best Online Course on POMIS - ffreedom app

Get a stepbystep process on POMIS with the help of our successful mentors. Learn to invest in the Post Office Monthly Income Scheme to get monthly income.

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Post Office Saving Schemes, Saving Plans for Boy Child in India 2022

Below are the 6 best Post Office Schemes for Boy Child in India-

National Savings Certificate (NSC)

Ponmagan Podhuvaippu Nidhi Scheme

Post Office Monthly Income Scheme (POMIS)

Kisan Vikas Patra (KVP)

Post Office Recurring Deposit

Public Provident Fund (PPF)

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Here are top 6 post office investment plans :

National Savings Certificate (NSC)**This is a low-risk with fixed income scheme offered by the government and is available with the post-offices across India. This post office saving scheme for boy child is loaded with best features and benefits to aptly suit your child’s needs. It facilitates a fixed income and definite returns to generate best revenues. This plan is currently available at 6.8% rate of interest per annum.

Features:

Minimum investment – Rs.1000

Maximum investment – no max. limit

Interest Rate – 6.8%

Lock in tenure – 5 years

Tax Benefits – Up to Rs.1.5 lakh (as per Section 80C of Income Tax)

Benefits

The plan offers fixed return on investment higher as compared to FDs.

Offer Tax benefits under section 80C.

Available at an initial investment of Rs 1,000, which is very less.

The Plan is available with a maturity period of 5 years.

No TDS allowed so the insured can obtain full value at maturity.

Ponmagan Podhuvaippu Nidhi Scheme

The department of post, Tamil Nadu introduced the Ponmagan Podhuvaippu Nidhi Scheme in the year 2015,especially meant for the male child. The account for this post office saving scheme for boy child can be opened through a parent/guardian for a minor boy below 10 years of age, while minor boys above 10 years can open the account on their own name. This special plan is limited to the residents of Tamil Nadu only, and can be availed by parents before their son attains 10 years of age.

Features:

Minimum investment – Rs.500

Maximum investment – 1.5 lakhs

Interest Rate – 9.70%

Maturity period – 15 years

Tax Benefits – available under Section 80C of Income Tax

Benefits

The plan offers ways to increase your income.

Offer Tax benefits under section 80C.

Nomination facility available.

Payments can be made in lump sum or in 12 small installments.

Parents can avail loan facility from fourth year of the account.

Post Office Monthly Income Scheme (POMIS)

Post office monthly income scheme or POMIS is a saving scheme for boy child where you can earn a fixed monthly interest by investing a certain amount. This scheme is easy to open in any post office across the country and is packed with features and benefits. For this scheme, the one key requirement is to have a post office savings account.

Features:

Minimum investment – Rs. 1000

Maximum investment – 4.5 lakhs

Interest Rate – 6.6%

Maturity period – 5 years

Tax Benefits – TDS is not applicable but sum invested is not covered under Section 80C

Benefits

The plan offers capital protection until the plan matures

This is a low risk plan and safe.

It offers affordable deposit amount facility.

The scheme offers guaranteed returns.

Multiple ownership is also available under this scheme.

Kisan Vikas Patra (KVP)

Kisan Vikas Patra or KVP is an apt plan that suits perfectly to the low income as well as the middle-class income families in India. This is a short-term post office saving scheme for boy child in India that permit parents to invest on a particular lump-sum money per year.

Features

Interest Rate – 6.9%

Minimum amount – Rs.1,00

Maximum amount – No Upper Limit

Maturity period – 10 years and 4 months

Lock-in period – 30 months

Benefits

The plan offers guaranteed returns with zero risks.

It helps accumulate savings for future your child.

Allow parents to get loans with low interest rates.

Nomination facility is available.

Post Office Recurring Deposit (RD)

This another good saving post office schemes for boy child in India. This is a recurring deposit plan that offer high rate of interest as compared to regular saving account in a bank. Under this scheme, parents can save a particular amount in the account every month for 5 years.

Features

Interest Rate – 5.8%

Minimum amount – Rs.100

Maximum amount – No Upper Limit

Maturity period – 5 years

Benefits

The plan offers limited restrictions.

Nomination facility is available.

Transfer of funds is available from RD to savings account.

Allow parents to save enough for their male child’s future.

Public Provident Fund (PPF)

Public Provident Fund or PPF is a post office scheme for male child in India that help parents to save on taxes as well. PPF is a long term plan of investment available at an attractive rate of interest and offers god returns on investment.

Features

Interest Rate – 7.1%

Minimum Amount – Rs.500

Maximum Amount – Rs 1.5 lakh

Tenure/Lock-in period – 15 years

Tax Benefit – available up to Rs.1.5 lakh under Section 80C

Benefits

The plan offers low risk.

Nomination facility is available.

Allow parents to take loans against the invested amount from 3rd of scheme.

Transfer of funds is available under this savings scheme.

Long term savings with attractive interest rate.

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POMIS SCHEME - Post Office Monthly Income Scheme 2022

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Post Office MIS Calculator

Calculate monthly income from the post office on your investments with this online MIS calculator tool. All you need to do is enter the amount you have invested in the Post Office Monthly Income Scheme (POMIS), select the interest rate and click the 'Calculate' button. Find which are the best Post Office schemes to invest! https://miscalculator.xyz/

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Promising Investments for Your Retirement Money

One of the stepping stones to a peaceful post-retirement life is investing your retirement money in stable and efficient options. This allows you to sustain the lifestyle you had while working. Before choosing your plan, it is vital to keep in mind factors like your initial capital and monthly living expenses. There are many options available in the market and picking one that suits you best can be tiresome. To learn more about safe ways to build your ideal investment portfolio, keep reading!

Prerequisites for investing after retirement:

Review your profile and identify the associated risks. Try to keep your profile as balanced as possible and be well-informed about the consequences.

Calculate how much you will need to pay for your bills and other monthly expenses. Plan your investments so that these expenses do not deplete your initial amount.

Better safe than sorry, have a clear understanding of the investments you are making. Analyse the risk and returns of each investment before committing to it.

Divide your investments, don’t pour all your funds into one type of investment, and avoid losing more than you can afford.

Have a reasonable amount of emergency funds that can act as a safety net in the case of a medical emergency or a bad investment.

So, you’ve gone through all the prerequisites, checked all the right boxes, and are now looking at a vast ocean of investment opportunities. Here are some of the most recommended investment plans for retirees that allow you to avoid tax liability and have a steady source of monthly income.

1. Senior Citizens’ Saving Scheme (SCSS):

As the name suggests, this scheme is only for citizens above the age of 60. It is one of the most popular choices among retirees as it provides an assured way to protect your initial capital. It offers the highest post taxable returns compared to other fixed-income taxable products, allows premature withdrawal, and is eligible for tax benefits.

With an upper investment limit of 15 lakhs, the freedom to open multiple accounts, a five-year tenure with an extension of three years, and a current interest rate of 8.6% per annum, SCSS is a post-retirement investment opportunity you don’t want to miss out on.

2. Fixed Deposits (FD) For Seniors:

One of the safest forms of investments as it is free from market variables and provides a fixed monthly or quarterly return based on your preference. Banks generally offer higher interest rates on FDs for senior citizens, that range anywhere between 5 to 9%.

The tenure period ranges from 12 months to 60 months; FD also offers higher liquidity and enables you to withdraw money whenever you require. Everything considered, an FD is a stable option and you should include it in your investment portfolio.

3. Post Office Monthly Income Scheme:

This unique investment opportunity for seniors offers considerable returns at an interest rate of 7.6% as per rates announced in Q2 2019. The maximum deposit allowed is 4.5 lakhs for single ownership and not more than nine lakhs for joint accounts.

Like Fixed Deposits, POMIS offers monthly returns that are not affected by market fluctuations and are taxable. Unlike a Fixed Deposit, POMIS has a fixed maturity period of 5 years. The best part? The monthly interest is directly credited to your savings account, so you can add it to your arsenal of investments.

4. Mutual funds:

“Mutual funds Sahi hai.” we’ve heard this statement one too many times. To retirees who are economically stable enough to invest in higher-risk alternatives, mutual funds are an exciting option. Investing in mutual funds can provide high returns but they are also highly volatile and are subject to market risks.

Identify the right risk profile for your current situation and allocate your funds accordingly. Retirees are urged to steer clear of thematic and funds including mid or small caps.

5. Debt funds:

A debt fund is a type of mutual fund but doesn’t have as much risk involved because they focus on fixed-income investments. They can provide returns as high as 15% of your investment per annum, are flexible, and provide liquidity, but charges may apply, and money cannot be withdrawn immediately. Nevertheless, long-term debt funds offer high returns based on market performance.

After retirement, the money you have worked tirelessly to save should work on its own to provide for your monthly expenses. Retirees are advised to construct an efficient investment portfolio that distributes their funds to several options by weighing the risk involved and meets their monthly financial requirements.

Make your savings work for you while you sit back and get a kick out of your retirement.

To avail more important information and attend the helpful sessions for seniors you can install Evergreen Club which is one of the best social networking apps for older adults.

Respond

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Best Investment Possibilities

Special Situations Funds are a new subcategory of AIFs introduced by SEBI.

When it refers to the finest investing possibilities in India, many people have a lot of doubts. Each investor needs to put their money into the finest investment alternatives in India so that they could get the greatest return in the shortest amount of time with the least amount of risk. A few people invest for financial stability, while others invest to meet their investment objectives. Your investing alternatives should be determined by your risk tolerance, investment objective, financial plans, and liquidity requirements.

This is why astute investors are already on the hunt for the perfect investment opportunities in India, where they may quadruple their money over a set period with little or no danger. Therefore, it is harder to identify an investment strategy that offers both large returns and little risk.

Read More :  Special Situations Funds are a new subcategory of AIFs introduced by SEBI.

In actuality, returns and risks are precisely proportionate, meaning that the greater the risk, the greater the likelihood of a positive return. Financial and non-financial assets are the 2 main types of investment possibilities available in India.-We could further split financial assets into business securities including mutual funds, live investments, and other business securities, as well as fixed-income securities including Bank FDs, Public Provident Fund (PPF), Bank RDs, and other fixed-income products. Gold investments, property investments, treasury notes, and other non-financial assets are examples of non-financial assets.

While investing, it is necessary to align the investor's risk tolerance with the product's associated risk. There are a few investment plans on the marketplace that carry a high level of risk and also have the capacity to generate beneficial long-term returns when compared to other types of investments. On either side, while certain investment options have lesser risk, they also have lower returns.

You may not only attain your investment targets and also build a financial cushion for the upcoming to live a successful future by investing in the finest investment alternatives in India. This is why traders will always be on the lookout for the best investment programs that will allow them to double their money while remaining within their risk tolerance. We've also gone through in-depth the best investment possibilities in India that could allow investors to accomplish their financial objectives.

India's Best Investment Options

Any of the leading investment ideas in India 2022 that promise significant profits are mentioned below. When preparing for the future, you may want to explore integrating such investment options into your portfolio of investments.

Investment Options

Period of Investment (Minimum)

Who Can Invest

Risks

Returns Offered

Direct Equity

NA

An investor who knows to balance risk and return

High

NA

Senior Citizen Savings Scheme (SCSS)

5 years

Senior Citizens

Nil

8.7 per cent

Real Estate

5 years

Anyone

Medium

19-15 per cent

Gold ETF

NA

Anyone

Low - Medium

Market-linked

RBI Bond

7 years

Indian Citizen

Nil

7.75 per cent

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

10 years

Senior Citizens

Nil

7.4 per cent

Unit Linked Insurance Plan (ULIP)

Less or equal to 45 years

An investor keen on wealth creation and life cover

High

Depending on the investor’s profile

Post Office Monthly Income Scheme (POMIS)

5 years

Indian Citizen

Nil - Low risk

7.7 per cent

Initial Public Offerings (IPO)

NA

An investor should have a Demat cum trading account

Moderate-High

NA

Mutual Funds

Within a scheme like ELSS a lock-in period of 3 years

An investor who has an appetite for medium to high risk

Low-High

Market-Linked

National Pension Scheme

60 years

An investor looking forward to retirement plans

Low-High

Market-linked ( 8 to 10 per cent)

Public Provident Fund (PPF)

15 years

Long-term investment goals

Nil

7.9 per cent

Bank Fixed Deposits

7 days

One who doesn’t wish to take the risk or be exposed to an equity

Nil

Fixed Returns, different from bank to bank

Unit-Linked Insurance Plan (ULIP) is a type of unit-linked insurance plan (ULIP)

In India, unit-linked insurance plans are thought to be among the greatest financial possibilities. ULIP plans provide both insurance and investment benefits. Furthermore, ULIP plans offer the benefit of tax deductions. The lock-in duration for ULIP plans ranges from three to five years. A portion of the payment is being used for insurance coverage, while the rest is invested in market-linked instruments including stocks, bonds, and other investments.

ULIP's functions include:

Investing in a ULIP is adaptable since it allows people to invest according to their appetite for risk.

ULIPs are a long-term investment that helps you get the most out of your money.

You can get tax-free maturity with a ULIP.

It allows you to pay a charge at a pre-determined time and receive advantages for the duration of the policy.

2. The Public Provident Fund (PPF) is a government-run pension fund (PPF)

Among all investing alternatives in India, this is among the safe long-term investment options. It is a tax-free product. You could open a PPF account in the bank or a post office. The investment made is secured for a period of 15 years. Furthermore, you could receive compound interest on your investment if you choose this investment choice. You could also prolong the period for another five years. The sole disadvantage of a PPF account is that you can withdraw your money before the end of the sixth year. You could obtain a loan against the amount of your PPF account if you require money.

Interest Rates on PPFs from 2012 through 2022

Consider the following interest rates for a PPF account from 2012 to 2022:

Financial Year

Interest Rate

2012-2013

8.80

2013-2014

8.70

2014-2015

8.70

2015-2016

8.70

2016-2017

8.10

2017-2018

7.60

2018-2022

7.60

Characteristics of the Public Provident Fund:

The capital and income in a PPF account are secure and insured because it is a government-backed scheme.

It has a 15-year lock-in period after the investment. After the lock-in term has been completed, the lock-in period can be prolonged for up to 5 years.

The lowest premium amount to be invested on an annual basis is Rs 500 and can go up to Rs 1.5 lakh.

PPF also gives you the option of taking out a loan against your investment.

3. Investment Funds

Mutual funds, one of India's most popular alternative investments, are an excellent long-term investment plan that provides significant returns. It is a market-linked investment option that invests in a variety of financial products, including equity, debt, stocks, money market funds, and more. Returns are calculated based on the fund's market efficiency. Even while mutual fund investments have a greater risk profile, they provide enough higher returns when compared to other leading investing alternatives. Mutual funds provide two primary investment choices:

Equity Mutual Fund: are investments that are tied to the stock market. Equity mutual funds, which are among India's most popular mutual funds, provide a high return on investment by investing in stocks of firms with various market capitalizations. Equity mutual funds give significantly higher returns than other investment opportunities in India, such as debt or fixed deposits. Therefore, the danger is greater. The equity mutual fund scheme invests 65 per cent of its assets in equities and equity-related assets and 35 per cent in debt and money market securities.

Debt Mutual Fund: Debt mutual funds are one of the greatest investment opportunities for investors seeking a consistent return. Fixed-interest instruments such as corporate bonds, government securities, treasury bills, commercial paper, and other money market instruments are invested in debt funds. The primary goal of debt fund investment is to create capital growth and interest income.

Mutual Funds have the following characteristics:

Mutual funds allow you to diversify your investment portfolio while also assisting you in achieving your investing goals.

Each mutual fund program has an assigned financial adviser who assists you in selecting a profitable investment for the fund.

Mutual fund investments are particularly advantageous because you are excluded from the wealth tax.

Mutual fund investment is accessible, allowing investors to make well-informed decisions.

4. Fixed Deposits in a Bank

Fixed deposits are one of the most well-known fixed-pay investment options. FDs, as their name suggests, provide fixed returns for the course of the investment. Earnings are paid on a monthly, quarterly, or annual basis, depending on the bank's policies.

FDs come in both cumulative and non-cumulative forms, based on the bank. Whenever it relates to the non-cumulative choice, income would be given according to insurance, however, in the cumulative alternative, interest would be reinvested and paid at maturity.

As a result, it is one of India's best investment alternatives.

Fixed deposit investments could be done online or in-person at any branch of the bank of your preference. The rates of interest on FDs are attractive, with rates ranging from 6.50 (for standard account holders) to above 7 (for senior citizens) for a one-year term.

FDs come in a variety of terms (minimum 7 days, maximum 10 years), and investors could pick the one that best suits their needs.

Bank Fixed Deposits have the following characteristics:

Investing in bank fixed deposits provides financial security and a secure method for earning great returns on surplus capital.

Bank fixed deposits are simple to renew, and some banks offer overdrafts upon fixed deposits.

The fixed deposit is unaffected by market fluctuations, and the returns are also guaranteed.

5. National Pension Scheme (NPS)

Being among the greatest government-backed investment options that provide pension alternatives. According to the investor's preferences, the fund invests in bonds, government bonds, stocks, as well as other investment options.

It has two modes: automatic and active. The money is reinvested automatically in various assets under the automatic alternative, whilst the active option allows the investor to invest in assets of their option.

The length of the lock-in period is determined by the investor's age, as the scheme does not mature until the investor reaches the age of 60.

The collected interest is tax-free under this system. Whenever one opts for a lump-sum payout at maturity, 40 per cent of the profits are tax-free. The sum is taxable as regular income if the pension is received after the maturity date.

Elements of the National Pension Scheme:

While investing in an NPS, you have the option of choosing between an automatic and an active pension.

Partially withdrawing monies from the NPS is also possible.

Even when you retire, the NPS allows you to maintain your independence.

6. The Senior Citizen Savings Scheme (SCS) is a program that allows senior citizens to save

For elderly citizens over the age of 60, the Senior Citizens' Saving Scheme (SCSS) is one of the risk-free tax-saving investing choices available in India. It is among the greatest investment ideas for seniors so it provides them with a steady income. The scheme offers a competitive interest rate of 8.6% per year, making it an extremely profitable investment option.

SCSS is provided at post offices and banks all around India. A maximum of Rs 15 lakh could be invested in this program.

The program's initial term is 5 years; however, it can be renewed for another 3 years.

The Senior Citizen Savings Scheme has the following elements:

The nomination capability is available at the time of opening an SCSS account.

The program comes with a high-interest rate of 7.4 per cent.

In the event of a financial emergency, you have the option of withdrawing the funds early.

This investment strategy has a customizable duration.

7. Investing in Direct Equity

Direct equity is thought to be among the greatest long-term investment possibilities. Even though most investors perceive direct equity to be a high-risk investment opportunity, direct equity funds give larger returns than every investment opportunity in the industry.

Whenever it refers to direct equity investment strategies, it's important to think about things like buying the correct stock and knowing when to enter and exit the marketplace. While investing in direct equity, ensure that you understand how to examine a share stock. The one-year, three-year, and five-year investment returns are presently at 8, 13, and 12.5 per cent, accordingly.

Kindly note that to invest in a direct equity fund, investors must first register a Demat account.

Direct equity has the following characteristics:

The investor delves into the legalities of purchasing a company's ownership.

Direct equity investment yields a higher return.

8. Investing in Real Estate

Real estate is among India's extremely fast industries, with promising potential in retail, housing, manufacturing, commercial, hotel, and other areas. Among the investment choices available in India, purchasing a flat or plot is the greatest choice. Because the property's rate rises every six months, the threat is quite minimal. Real estate investment functions as a property and is regarded as among the best long-term investment projects with significant returns.

Characteristics of Real Estate Investing:

Real estate investment has a high tangible asset value.

Real estate investing also allows you to build a portfolio, which reduces volatility and gives significant profits.

Wait till the opportune time comes to sell the property and liquidate the investments.

9. RBI Bonds

The RBI Taxable Bonds have a 7-year maturity and a 7.75 per cent annual interest rate.

These bonds are only available in Demat format and are credited to the investor's Bond Ledger Account (BLA).

The bonds are issued for Rs. 1000, and investors obtain a Notification of Holding as verification of their investment.

The interest could be obtained as monthly earnings with the non-cumulative alternative; however, the cumulative opportunity offers re-invested interest. As a result, these bonds are one of India's best investment possibilities.

Taxable Bonds issued by the RBI have the following elements:

Any person could invest in this bond, and there is no maximum amount that could be invested.

Premature withdrawal for senior citizens is possible if specific conditions are met.

Interest could be paid in either a cumulative or non-cumulative form to an investment.

ETF that invests in gold

Gold Exchanged Traded Funds are financial instruments that combine gold investment and stock trading. The Gold ETF could be purchased and traded just like any other firm stock. Gold ETFs are inactive products that are based on the value of gold, making them accessible in terms of cost.

When market-linked instruments' risks are high, bigger returns are frequently provided. As a result, while you lock down a financial asset, you should perform research and obtain accurate information on the instrument and its market presence.

Gold ETFs have the following characteristics:

Gold ETFs have a high level of liquidity and are easily traded on the stock exchange.

The advantage of being able to choose the quantity you want to sell and acquire.

It can be used as collateral for secured loans and the transaction can be completed quickly.

11. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

The Pradhan Mantri Vaya Vandana Yojana is available to elderly adults aged 60 and up and provides them with an annual guaranteed return of 7.4%. The system pays pension income on a monthly, quarterly, semi-annually, or annual basis, depending on the option selected. Each month, the lowest pension payment is Rs 1,000 and the maximum amount is Rs 9,250. A maximum of Rs 15 lakh could be invested in the program, which has a ten-year time frame and would be offered till March 31, 2023. The amount invested would be paid to the relevant senior citizen upon maturity; however, in the event of the senior citizen's death, the payment will be paid to the nominee.

PMVVY has the following benefits:

At a certain point in time, an elderly citizen receives a regular pension.

If you keep the scheme for three years, you can get a loan for 75% of the purchase price.

A free look period is also available, as well as a secured pension.

12. Monthly Income Scheme of the Post Office

The Post Office Monthly Income Scheme, as its name suggests, is a monthly savings plan governed by India's Post Offices. A government-backed program that allows users to save money each month. Any Indian person could register a Post-office MIS account with a minimum deposit of Rs 1500. The maturity time of the scheme, which is 5 years, begins the day the account is created. Investors could also open a POMIS account, either individually or collectively. If an investor is seeking a tax-saving option, this instrument is not for them because it does not provide a tax rebate on either the maturity amount or the investments.

POMIS has the following features:

You could simply create a joint account with two or three persons.

It is feasible to make money in the form of interest each month.

You could easily register multiple accounts in your name and invest the funds in the same scheme when they mature.

13. Initial Public Offerings (IPOs)

An Initial Public Offering (IPO) is a type of offering in which a new business invites the public to buy shares in the firm before it is listed on a stock exchange. Firstly, the rates are low, and traders are likely to maintain an eye on potential businesses that aim to see the price of their stock rise overtime after the offering.

Whenever a firm is listed on the stock exchange, the price of its stocks fluctuates based on market situations, which has an impact on the firm's earnings, prospects, management, and a variety of other factors. This alternative can be regarded as a long-term and low-risk investment choice if the businesses are right. Though, IPOs come with their own set of dangers that must be considered when investing.

The IPO's features include:

Because it gives stock options, the company attracts top talent.

It is not necessary to repay the capital, and it does not charge interest.

It is advantageous for small business owners and venture capitalists to cash out their early investments.

Investment Options Types

It is critical to have a thorough understanding of various investment plans when beginning to invest. Let's look at the many types of investment possibilities in depth because most investors invest depending on the risk level (low, medium, and high threat).

1. Investing with low risk

These are investment choices that provide a consistent income independent of economic or company conditions. This category includes debentures, bonds, and fixed deposits. Other investing alternatives include EPF, PPF, Sukanya Samriddhi Yojana, Senior Citizen Savings Plans, and National Savings Certificates, all of which are government-sponsored schemes with low-risk guaranteed returns.

These investment programs provide predictable and predictable returns. Low-risk investment choices should be considered by investors who want no volatility in their investment portfolio and have a low-risk tolerance. Low-risk investment choices provide investors with secure and assured profits.

2. Investments with a moderate level of risk

These investment plans carry a certain level of risk, but they also offer a better rate of interest to investors. Medium-risk investment alternatives are better suited for investors with a moderate risk appetite who wish to earn larger returns and a more consistent stream of income than fixed-income assets.

This includes balanced mutual funds, debt funds, and index funds. Despite the fact that medium-risk investment opportunities offer some consistency and debt, their market-linked volatility could wreak havoc on the principal. Medium-risk investing alternatives offer some consistency and debt, but the returns' unpredictability might result in a loss of money. It is impossible to obtain a continuous fixed income depending on the market volatility connected with these products.

3. Investing in high-risk situations

Returns and hazards are exactly proportionate to each other in high-risk investment options. These investment plans provide a high return on investment, but the risk associated with them is equally significant. This includes equity mutual funds, company stocks, derivatives, and even individual equities. These investment alternatives are suitable for market aware investors with a high-risk tolerance appetite and a good understanding of the market. Even if there is no limit to the amount of money you can make with these investing alternatives, the danger is very great.

However, these investment opportunities could yield great profits, it is critical to know when to participate in a turbulent market and when to quit and remove money with high profits.

The Best One-Year Investment Strategy

If you intend to invest for a short period, say a year, you must stay away from stock options because they are volatile. Thus, when making a short-term investment, it is critical to ensure that the money you invest is secure, as you will not be able to retrieve your losses if market volatility occurs. These were some of the top one-year investing plans available for significant returns.

1. Fixed Maturity Strategies

These are closed-ended mutual funds that invest primarily in fixed-income assets with appropriate maturities. Instruments that could mature at the same time are chosen by the fund manager. Fixed maturity plans have a maturity time ranging from one month to five years. Fixed maturity plans keep the investment until maturity and are unaffected by interest rate fluctuations, even if they are high. The primary goal of a fixed maturity program is to produce a consistent return throughout the period.

2. Mutual Funds that Invest in Debt

Debt mutual funds are the finest short-term investment opportunity, with the top investment strategy for a year being debt mutual funds. These are open-ended funds that are better suited to investors with a low tolerance for risk. Debt mutual funds are among the safe and most effective investment projects with good returns, as the investment is mostly invested in high-rated debt securities including corporate bonds, government securities, and treasury bills. Debt mutual funds provide better returns when compared to any of the traditional savings bank accounts. This fund invests mostly in securities with maturities ranging from six months to one year.

3. Term Deposits at the Post Office

This is among the easiest and safe one-year investment plans available. Term deposits at the post office are available for 1 year, 2 years, 3 years, and 5 years. Deposits establish the interest rate, which is set by the government each quarter and guarantees the investment, in post-office terms. The entire investment made towards POTD interest accrues at the current rate. As a result, if an investor builds a new investment after the fresh interest rate is announced, the new investment would get earnings depending on the new rate of interest.

4. Mutual Funds that Arbitrage

This mutual fund's investors put money into subsidiaries and money segments to take advantage of the price market's and subordinate fragment's arbitrage opportunities. This open-ended fund is appropriate for those who wish to take advantage of a tax benefit and would like to invest for at least a year. The investment in an arbitrage mutual fund was low-risk. Furthermore, when compared to alternative investment options, the returns produced by these funds are also lower.

5. Deposits made regularly

The recurring deposit, as among the finest investment plans for a year, is better suited for investors seeking a safe investment choice and who wish to invest a small fixed sum with the bank on a routine basis. The person gets the lump-sum payment plus interest at the end of the insurance term with a recurring deposit. This is a profitable short-term investment opportunity since it encourages individuals to develop long-term saving habits.

6. Fixed-Income Investments

Fixed deposits are among the simplest and most luxurious investing opportunities, and one of the greatest one-year investment projects. If a person has a lump sum of money in their savings account, they could put it into a fixed deposit. Bank FDs offer a competitive interest rate, which is significantly higher than that of a conventional savings account. Furthermore, bank fixed deposits are regarded as very stable investments because they are fixed for the duration selected and there is no risk of theft.

Best Investment Strategies for the Next 5 Years

Short-term and low-risk investment options spanning from 1 to 5 years could assist a person to protect their collected wealth. An individual could invest without locking it away for a longer period with the finest investment strategy for 5 years. Investors must think about liquidity, risk, and tenor whenever deciding on the optimal investment program for the next five years. Let's have a look at some of the top investment plans for the next five years that you might want to explore.

1. Liquid Funds 

These are a sort of mutual fund scheme that invests in short-term government bonds and certifications, sometimes referred to as money market funds. Traders in this fund have the opportunity of withdrawing money when they want. This fund is better suited for investors looking to invest for a period of three to five years. Because the money invested in liquid funds is primarily invested in financial instruments, they pay a higher rate of interest of 7%.

2. Savings Account 

Savings accounts are a popular option for many individuals because they are one of the greatest investment plans for the next five years. This investment strategy provides maximum liquidity to investors, allowing them to withdraw cash at any time and from any location. Savings accounts with a 4% interest rate are appropriate for people who want access to all of their money regularly.

3. Time Deposits at the Post Office

These plans are regarded as among the greatest short-term investment projects as well as the best investment choice because they provide investors with guaranteed returns. The India Postal Service offers this plan, which is very famous in India's remote and rural areas. Post-office time deposits have a term of one to five years and provide high liquidity to investors. Every year, interest is calculated on the amount deposited. Let's take a view of the current interest rates for Post-Office Time Deposits.

Tenure of Account

Applicable Rate of Interest

1 Year

7.0%

2 Years

7.0%

3 Years

7.0%

5 Years

7.0%

4. Mutual Funds with a Large Cap

Huge-cap mutual funds, another opportunity for the top investment program for 5 years, invest mostly in stocks of large corporations to make a large profit in a short amount of time. With a duration of 3-5 years, this attractive short-term investment strategy could provide investors with fast and sensible profits. In addition to the high returns of 8% to 12% on investment, this fund also provides investors with a high level of liquidity. This is a low-risk short-term investment fund that is better suited for investors with a low-risk appetite.

5. Derivatives and the stock market

Commodities, stocks, and derivatives can be rewarding for investors with a thorough understanding of the market and a high-risk tolerance. Sharemarket investments could be undertaken for the short or long term, based on the investors' financial goals.

What should you do?

Some of the investment possibilities listed above are fixed-income investments, while others are market-linked investments. It is critical to comprehend the position of both forms of investment possibilities when attempting to build wealth for the future.

While market-linked investment options are subject to market volatility, their returns are large, fixed-income investment opportunities that allow you to accumulate money and achieve your financial goals. It is critical to create the greatest use of both investing possibilities to attain your financial targets, whether they are short-term or long-term. Have a judicious mix of investments, bearing in mind crucial factors including taxation, risk, and investment horizon.

Conclusion

The golden rule of sensible investing is to have a thorough awareness of the many sorts of investment opportunities available in the market. The goal of most investors' investments varies based on their financial objectives, time horizon, and risk tolerance, among other factors. To make money grow, an individual must invest in wise investment selections that will provide attractive long-term returns.

Furthermore, as an investor, you must distinguish between savings and investment. Even though saving is regarded as a distant approach to accumulating riches, creative investment tactics might help you in accumulating additional wealth.

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Post Office MIS Scheme in Hindi | Best Investment Plan

Post office MIS scheme in Hindi   ( POMIS )

MIS क्या है ?

इसके लिए किन दस्तावेजो की जरूरत होती है ? MIS में कौन कौन अपना खाता खुलवा सकता है ? Mis में कितनी ब्याज मिलेगी ? Mis का meturity period क्या है ? क्या mis रिस्क फ्री और टैक्स फ्री है ? कोन इस सुविधा का लाभ ले सकता है ? इन सब सवालो के जवाब हम देंगे अपने इस ब्लॉग में तो आइए जानते है

MIS क्या है –

MIS यानि मंथली इनकम स्कीम है । ये पोस्ट ऑफिस की एक बेहतरीन स्कीम है । इस स्कीम में आपको fd और RD दोनों से अछे रिटर्न है । यह स्कीम बाकि सब से अच्छी इसलिए भी है क्योंकि इसमें आपको हर महीने ब्याज मिलेगी ।

रिस्क फ्री – मन्थली इनकम स्कीम भी fd, RD, nsc की तरह रिस्क फ्री स्कीम है जो निवेशक रिस्क ज्यादा नहीं ले सकते है उनके लिए ये एक बहुत ही अच्छी स्कीम है ।

खाता कौन खोल सकता है – 18 साल से ऊपर का हर भारतीय नागरिक इस स्कीम का फायदा ले सकता है । परन्तु यदि आप माइनर का 10 साल से ज्यादा लड़का / लड़की का खाता खोलना चाहते है तो खाता खुल जायेगा परंतु उसे ऑपरेट माता पिता ही कर सकेंगे ।

ट्रांसफर – मंथली इनकम स्कीम पोस्ट ऑफिस की एक बेहतरीन स्कीम है । आप अगर किसी वजह से एक शहर से दूसरे शहर में चले गए तो आप अपना खाता ट्रांसफर भी कर सकते है ।

ब्याज – मंथली इनकम स्कीम में आपको 7.9% ब्याज मिलती है । पोस्ट ऑफिस की ब्याज हर तीन महीने में बदलती रहती है । परंतु इस स्कीम में ब्याज 7-9% तक रहती है ।

टैक्स – इस स्कीम में आपको सेक्शन 80c के तहत आपको टैक्स में कोई भी छूट नही मिलेगी । अगर आप साल का 10000 से ऊपर रिटर्न कमाते हो तो आपको वहाँ टीडीएस कटेगा । परंतु यदि आप रिटर्न फाइल करते है और आप इनकम टैक्स की सूची में नही आते तो आप का टीडीएस नही कटेगा ।

Meturity period – MIS का meturity period 5 साल का होता है ।

आ���को पैसे कैसे मिलेंगे – इस स्कीम में आपको हर महीने ब्याज मिलेगी । आपको ये पैसे आपका यदि पोस्ट ऑफिस में सेविंग खाता है तो आपके पैसे वहाँ जमा हो जाएंगे नहीं तो आपको चेक के द्वारा आपके पैसे मिल जायेंगे ।

कितने पैसे जमा करा सकते है – आप इस स्कीम में कम से कम 1500 रुपए तक जमा करा सकते है । यदि इस स्कीम में एक अकाउंट होल्डर है तो वह 4.5 लाख रूपए तक जमा करा सकता है । परंतु यदि 2 या 3 अकाउंट होल्डर है तो इसकी लिमिट 9 लाख तक है । आप ये पैसे यानि 1500 से ज्यादा आप जितने भी जमा कराना चाहते हो तो आप एक ही बार में करा सकते है ।

Pre -mature closure –. इस स्कीम में आप पहले साल यानि एक साल में आप अपने पैसे को नहीं निकाल सकते । यदि आप 1 से 3 साल के बीच में पैसो को निकलते है तो आपको 2% का जुर्माना लगेगा । यदि आप 3 से 5 साल के बीच में पैसे को निकलते है तो आपको 1 % का जुर्माना लगेगा ।

नॉमिनी – मंथली इनकम स्कीम में आप अपनी फैमिली के किसी एक मेंबर को नॉमिनी बना सकते है ।

ट्रांसफर – मंथली इनकम स्कीम पोस्ट ऑफिस की एक बेहतरीन स्कीम है । आप अगर किसी वजह से एक शहर से दूसरे शहर में चले गए तो आप अपना खाता ट्रांसफर भी कर सकते है ।

Calculation – अब हम देखते है calculation कर के की आपको कितने रुपए मिलेंगे – यदि आप 1 लाख रुपए जमा करवाते हो तो आपको हर महीने 690 रुपए मिलेंगे । अगर आप 2 लाख जमा करवाते है तो आपको 1380 रुपए हर महीने ब्याज मिलेगी । यदि आप 9 लाख यानि जो इस स्कीम की लिमिट है उतना जमा करवाओगे तो आपको 6210 रुपए हर महीने मिलेंगे।

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अगर आप MIS या किसी भी और इंवेस्टमेंट के बारे में कुछ पूछना चाहते है या कोई सुझाव देना चाहते है तो आप मुझे कमेंट कर सकते है या आप मुझे ईमेल भी कर सकते है wadhwatarun321@gmail.com . ऐसे ही अन्य जानकारी के लिए TarunBlogs को फॉलो करते रहें|

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Locate some Best Investment Schemes for Senior Citizens in India

Senior nationals never again rely upon others to settle their money related problems.They now, from at an early stage begin assembling a strong retirement portfolio.This guarantees that they put their capital assets judiciously.Investing in just a single section won’t give them the required returns.They need to put their fingers in shifted pies to get remarkable returns.

Obviously, senior subjects confront certain hiccups, for example, swelling, rising restorative expenses and the way that senior natives are living more than over, that implies that retirees must guarantee that they don’t outlast the retirement reserves. Indeed, one resigns at 58-60 while they can live till 80 or 90. In this way, here are some best speculation choices for senior subjects that you should investigate to get a customary stream of pay.

The Perfect Investment Options for Senior Citizens – Explore and Invest

· Senior Citizens Savings Scheme-

This venture is ideal for individuals who are 60 or who are beyond 60 years old. Deliberate retirees can likewise contribute once they achieve the age of 55. You can open a shared service with your life partner. As far as possible is Rs. 15, 00,000 and it is regardless of the quantity of records you have. The present rate of intrigue is 8.5%. The intrigue is paid quarterly.

· Senior Citizens Pension Plan or Varistha Pension Bima Yojana

-This is an annuity arrange for where the installments are made intermittently to the policyholder. It is appropriate for anybody over the age of 60. As far as possible is Rs. 63,960 and the most extreme sum can go up to Rs. 6, 39,610. The benefits is assessable and regularly scheduled payouts are conceivable. The profits are around 8%.

· Post Office Monthly Income Scheme (POMIS) -

This is accessible for whoever is 10 years or more established can contribute. The base venture constrain is Rs. 1500 and the most extreme go up to Rs. 4, 50,000 on account of a solitary record holder and twofold the sum Rs. 9, 00,000 on account of a shared service holder. The settled month to month financing cost is 7.7%. Regularly scheduled payouts are additionally conceivable. At the point when the sum achieves development it can be re-put resources into POMIS.

· Bank and Company Deposits

-This may end up being one of the most established types of venture alternatives for senior natives, it is as yet one of the more bankable types of speculation. One can put cash in the organization stores for more noteworthy premium returns. The rate of premium is considerably higher than the Bank FD loan fees. As far as possible is 10 years or more seasoned for a performance represent a shared service it can be more youthful than 10 years. As far as possible ranges from Rs. 5000 to in excess of a crore relying upon the bank or organization. The Interest rate is 0.5% higher than ordinary settled store rates for senior nationals. It is from 4%-8% for banks and for Company stores it is 8%-8.90%.

·Mutual Funds

-Senior subjects can put some sum in Mutual Funds, particularly the ones which have a lower hazard. They can put resources into obligation stores, fluid supports et cetera, that put resources into different business paper, diverse bonds, and government securities et cetera. They can give great returns and can beat expansion. Month to month pay designs can give standard wage. Be that as it may, shared assets are liable to certain market dangers.

· sans tax securities

- sans tax securities, (not accessible in the essential market) can turn out to be a basic piece of a retiree’s portfolio. There are government-sponsored foundations that issue these bonds. A portion of the foundations are as per the following, National Highways Authority of India (NHAI) Indian Railway Finance Corporation Ltd (IRFC), Power Finance Corporation Ltd (PFC), Housing and Urban Development Corporation Ltd (HUDCO), Power Finance Corporation Ltd (PFC), NTPC Ltd and Indian Renewable Energy Development Agency, Rural Electrification Corporation Ltd (REC) et cetera.

· Immediate Annuities –

Senior residents can attempt their hand at putting resources into prompt annuity plans of disaster protection organizations. The annuity remains at around 5-6 percent for each annum and it is totally assessable. In any case, the sum used to purchase the annuity isn’t returned.

Senior natives can likewise appreciate a decent post-retirement life on the off chance that they prepare and make well-thoroughly considered budgetary speculations. Along these lines, simply ahead and contribute right and make the most of your dusk a very long time in peace and agreement.See more info:

financial plan for senior citizens

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What is the best investment for senior-citizen for monthly income plan?

You are not 60 years old, you are 60 years wiser. You have done your fair share of service and now you would like to sit back and relax. After retirement, your work is done but your bare necessities aren’t over. So who do you turn to? Your kids, pension or savings? Your sure don’t want to be at the mercy of your children and you aren’t sure how long your savings will last. Being the modern age senior citizens, you would want to flow into your retirement years gracefully. And what better way to ensure that than investing.

Investments in India has grown its popularity over the years and now people have chosen a smarter and more secure way to live their life with it. There are plenty of investments schemes for senior citizens, the only problem is to choose the right one. There are many options like bank fixed deposits, mutual funds, pension plans, senior citizen saving scheme, et al. We have understood that after retirement, you don’t want to risk your money by investing in the stock market as it’s a risky business and you are also looking for a monthly flow of stable returns. Monthly income schemes for senior citizen are the type of investment tool which ensures a monthly flow of returns in form of dividends. This is probably one of the safest forms of investments as you don’t really have to worry about the risks or keep a constant eye on the market. Let’s discuss some of the monthly income investment plans options available to you. Senior citizen saving schemes (SCSS) are government backed schemes which ensure security and safety features. It’s a long term savings scheme with a higher rate of interest. It comes with a lock-in period of 5 years and an additional 3 years can be added.

Another option to explore would be the mutual fund monthly income plan. If you are looking for stable returns for a longer period of time with medium returns and lesser risks then mutual funds are your solution. Your savings will eventually run out and you need the money to keep growing so it’s better to invest in equity-backed mutual funds. You might be dubious between equity and debt and our answer would be an experiment! Diversify your portfolio and try out both. Equity provides you with better returns while debts are very stable. Remember, higher the return means higher the risk. One of the well-paid investing options is post office monthly income scheme or POMIS. It is a one-time investment and comes with a 5-year lock-in period. But there is a downfall to it, that is the interest earned on POMIS are taxable.

Now that you are financially aware, you want to be financially independent too. It all boils down to being able to live a secure and happy life. If you haven’t started planning on your investments, you should get to it. Investing could be one of the best ways for you to keep living with dignity and delight. Your corpus is to be invested safely and securely so do not forget to go with an investment option which matches your portfolio. Life doesn’t end at the 60s, a new phase has just started. Enjoy a happy retirement!

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Best Investment Options for Senior citizens in 2020 to generate regular income

Due to the falling interest rate, the risk involved in equity, and debt space, many senior citizen investors are now in a huge problem to generate a decent return for their survival. What are the best investment options for senior citizens in 2020 to generate regular income?

Before jumping into available products, you have to first clear yourself with what are you looking for while investing.

# Is it for income generation or growth?

You have to be very clear whether the investment is for income generation for your regular survival or investing to grow your accumulated corpus.

# What is your tax slab?

You have to look for post-tax returns always rather than the pre-tax return. Because if you are falling under the highest tax bracket, then a major portion of return will be eaten by the tax.

Hence, understand the product at first, then your tax slab and after that take a concious decision.

# You can stagger your investment

If your idea is to generate a constant stream of income, then you can use a bucket strategy. Where you are putting your first 10-15 years requirement in safe products (a first bucket) and accordingly the future requirements splitting into a different bucket and taking the calculated risk slowly as the required term is higher.

If you can’t do that, then hire a fee-only financial planner to help you in this.

# Higher RISK always not HIGHER returns

Higher risk always does not mean higher returns. There is a probability of higher loss also. Hence, never heed anyone blindly. Understand the risk properly and then decide yourself.

# Inflaiton RISK

Never think or not be in the wrong assumption that if you have a sufficient amount today then that sufficiency will remain the same. Due to inflation, whatever may be a good income for you will not be sufficient for your requirement. Hence, always consider inflation while investing.

# Interest Rate Risk

The majority of products offers around 5-10 years. Hence, once the maturity is over, then it is not sure whether you will be able to generate the same returns or not. For example, if you opted the SCSS scheme, then it is 5 years product. Once the 5 years completed, then you have to face the interest risk. Because after 5 years, the same SCSS may not offering you the same interest rate as what you are getting today. Hence, understand this factor properly.

# Liquidity

Look for the product which offers you certain liquidity. Because we don’t know when you need money. Hence, it is always wise to choose a product wisely which offers the highest liquidity.

# Make a nomination and WILL

Wherever you invest, make sure you have nominated and if possible create a WILL also. So that your dependents or family may not be in a tussle in your absence.

Best Investment Options for Senior citizens in 2020 to generate regular income

In this post, I am concentrating only on SECURED products. I am not suggesting any market-linked debt or equity instruments. Because to invest in such products, you need someone’s guidance or you have to do your own research. Hence, rather than forcing you to experiment on any such options, in this post, I am sharing the best investment options for senior citizens in 2020 to generate regular income.

# Bank or Post Office FDs

I know that currently Bank FDs are offering you around 5% to 6.5% interest rates. However, recently few banks started to offer higher interest rates for senior citizens if they are booking the FDs for 5 years to 10 years. Refer my latest posts on that “SBI WeCare Deposit Vs Senior Citizens Savings Scheme (SCSS) – Which is the best?” and “HDFC Senior Citizen CARE FD Vs SBI WeCare FD Vs Senior Citizens Savings Scheme (SCSS) – Which is the best?“.

When I say Bank FDs, I am suggesting nationalized banks or big private sector banks like ICICI or HDFC. I am not suggesting any Co-Operative Banks.

You can explore the Post Office FDs also. The current interest rate is 5.5% to 6.7%, which is almost equal to the bank FD rates. You can refer to the latest interest rate at my post “Latest Post Office Interest Rates April-June 2020“.

You have an option to get the interest rates either on monthly/quarterly or at maturity. If you are really looking for the safety, then I suggest Post Office Term Deposits over the Bank FDs.

# Senior Citizen Savings Scheme

Post Office and certain recognized Banks offer you this wonderful product. The term is 5 years and the maximum amount you can invest is Rs.15 lakh. The current rate of interest is 7.4%. The interest will be payable on a quarterly basis.

You can refer to the complete details about the Senior Citizen Savings Scheme at “Post Office Senior Citizen Scheme (SCSS)-Benefits and Interest Rate“.

# Pradhan Mantri Vaya Vandana Yojana (PMVVY)

It is a wonderful product launched by the Government of India. It is a 10 years product. The current interest rate is 7.4%. This product is currently available up to 31st March 2023. You can buy this from LIC. In fact, you can avail of the loan on this. The maximum limit to invest is Rs.15,00,000.

You can refer to the complete details about Pradhan Mantri Vaya Vandana Yojana (PMVVY) at “Pradhan Mantri Vaya Vandana Yojana (PMVVY) 2020 – 2023 – 5 Changes you must know“.

# Post Office Monthly Income Scheme (POMIS)

As the name suggests, the Post Office will pay you the interest on a monthly basis. It is a 5 years product. The maximum limit is Rs.4.5 lakh. The current interest rate is 6.6%. Refer my article on this product “Post Office Monthly Income Scheme or MIS – A complete guide“.

# 7.75% Government of India Savings Bonds (Taxable)

It is a 7 years bond where the current interest is at 7.75%. There are options like cumulative and non cumulative also. The Bonds will bear interest at the rate of 7.75% per annum. Interest on non-cumulative Bonds will be payable at half-yearly intervals from the date of issue (The date of issue of the Bonds in the form of Bonds Ledger Account, will be opened (issued) from the date of tender of cash or the date of realization of draft/cheque.) or interest on cumulative Bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal.

You can refer my post for a complete detail at “How to buy/invest in 7.75% Government of India Savings Bonds?“.

# Tax Free Bonds

Currently there are no tax-free bonds offerings. However, you can buy them from the secondary market. You will get the tax free interest up to maturity. You will get various maturing tax-free bonds. You can refer my post for a complete detail at “Best Tax Free Bonds 2020 in India – Should you invest?“.

The yield may vary based on the date of maturity and coupon. Hence, you have to understand your requirement at first then jump into buying such bonds.

# Immediate Annuity Plans by Life Insurance companies

Life Insurance companies including LIC offer such immediate annuity plans. For example, you can check LIC’s Jeevan Shanti plan. This particular plan offers around 10 various options based on your requirement.

This product will give you GUARANTEED returns for the specified period based on the option you opt for. Hence, there is no question of interest rate risk.

Conclusion:-As per my knowledge, these are the Best Investment Options for Senior citizens in 2020 to generate regular income. As I pointed out earlier, I have not listed any debt funds or equity funds where you can invest and use the strategy called a systematic withdrawal plan. Because they are not suitable for those who are looking for a safe and constant stream of income.

Refer our latest posts:-

Best Investment Options for Senior citizens in 2020 to generate regular income

Pradhan Mantri Vaya Vandana Yojana (PMVVY) 2020 – 2023 – 5 Changes you must know

HDFC Senior Citizen CARE FD Vs SBI WeCare FD Vs Senior Citizens Savings Scheme (SCSS) – Which is the best?

Mutual Funds Inter-Scheme Transfer – Hybrid Funds are risky now?

SBI WeCare Deposit Vs Senior Citizens Savings Scheme (SCSS) – Which is the best?

Who is eligible for Pradhan Mantri Awas Yojana (PMAY) 2020 – 2021?

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5 Safe Investment Options with High Returns for FY 2017-18

Investors looking at growing wealth in a low risk manner have quite a few options. Based on their objectives and individual risk profiles, they can choose from these best investment plans and options in India,preferably by diversifying money across investments.

While investors are specific in their quest for safe investment options and plans in India, it’s important to understand that safe investment options don’t really exist in India or any part of the world. As they say – the only safe investment option is the savings bank account. And even then, your money won’t earn a return. In fact, it won’t even survive the eroding effects of inflation. So you may actually lose money in a savings account in terms of purchasing power.

So what investors should really gun for are low risk investments that offer a reasonable return. While there are quite a few of them in the market, we shortlist the five options that are worth considering:

i. Fixed deposits Fixed deposits (FDs) are a low risk investment that can help grow money over time. Investors can choose from bank FDs or company FDs. Certain FDs also offer  income tax  benefits.

While investing in FDs may seem simple, investors must consider a few points while selecting the FD most suited to their needs:

   Credit profile – this helps determine whether the company will honour all capital and interest payments – higher rated FDs (AAA/FAAA) should be preferred    Interest rate – this is the rate of return on the FD, so a higher rate is obviously preferable. However, make sure you do not compromise on the credit rating for a higher return.    Interest payout frequency - FDs are known to offer interest payouts at varying frequencies - monthly, quarterly, annually or a one-time payment on maturity. You must opt for the one that meets your needs. The one-time payment or ‘on maturity’ option generates the highest return, thanks to the effect of compounding.

ii. Post-office schemes

Favoured by conservative investors, they include:

The schemes are ideal for individuals with long term investment. They have varying tenures, interest rates and tax implications. Your choice best investment option/plan in India depends on your specific needs and financial goals.

   NSC (National Saving Certificate)    PPF (Public Provident Fund)    POMIS (Post office monthly income scheme)    POTD (Post-office time deposit)    KVP (Kisan Vikas Patra)

iii. Endowment plans

Insurance companies launch endowment plans to offer life cover combined with savings. In insurance parlance, they are ‘with profits’ plans. Endowment plans assure a payout regardless of whether the policyholder survives the tenure or not. iv. Bonds Bonds work in much the same way as FDs, with the exception that certain bonds are traded in the secondary market which makes them liquid. Given the similarities between the two, bonds must be analysed in the same manner as FDs. So if you want to invest in them, it’s a good idea to consider parameters like credit rating of the bond, rate of interest and the frequency of compounding. Certain bonds, like infrastructure bonds, also offer tax benefits. v. Bond funds As the name suggests, debt funds or bond funds invest in fixed income securities like corporate bonds, government securities (gsecs/gilts), money market instruments, among the best investment plans in India. They are offered by mutual funds as also life insurers. Bond funds have more variety, greater flexibility, higher liquidity and superior tax benefits compared to bonds.