The government has launched several investment schemes with the aim of helping all the children of the country in various ways. There are many government schemes that your children can use as great investment opportunities.
Parents can choose a scheme based on their investment objective, risk tolerance and tax liabilities. However, before taking any investment decision, complete information about the scheme should be taken in detail. So that you do not have to face any kind of problem in future. Here you are being given information about 5 government schemes.
Invest in these 5 government schemes
General Provident Fund Scheme: PPF scheme is a safe and long term investment option with better interest rates. Interest earned on PPF accounts opened by parents in the name of their children is tax free. Depending on your income and financial objectives, you can invest a minimum of Rs 500 and a maximum of Rs 1.5 lakh every year. Investing in Equity Mutual Funds: The rate of deposit in Equity Mutual Funds in Children Investment Plan is very high. They are one of the good options as it has time period options. Equity funds have historically given good annual returns in the range of 12 to 15 per cent. Equity-Linked Savings Scheme (ELSS): The lock-in period for ELSS, a mutual fund investment option, is three years. Higher returns are provided, and Section 80C tax exemption is available. This product helps you save tax while also giving you respectable returns. National Savings Certificate (NSC): NSC is a fixed income investment option with a lock-in period of five years and a fixed interest rate. Even though the interest is taxable, the investor can still claim tax exemption under section 80C. Sukanya Samriddhi Yojana (SSY): Sukanya Samriddhi Yojana is a scheme of the Government of India which encourages parents to set aside money for their daughters. You can open an account in any post office till the daughter is 10 years old. Every year the scheme accepts a minimum deposit of Rs 1000 and can deposit a maximum of Rs 1.5 lakh. Explain that the amount deposited in Sukanya Samriddhi Yojana can be deposited till the girl child turns 14 and maturity will be done after 21 years from the day of account opening. In this, interest is given at the annual compound rate of 8.6 percent. Partial withdrawal is also allowed after the child turns 18.
(PC rights of employees)
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