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The COVID-19 pandemic has badly infected the economy, which is backed by a wave of lockdowns. It has affected employees, household, commercials, etc. As a result, investors want to invest in fixed and secure income investment options during this pandemic stage. Keeping this in mind, we have categorised 4 different types of investment that not only provide assured returns but also ensure the safety of  your capital.

Investment options that offer guaranteed returns

Following are different types of investment that offer guaranteed returns:

Post Office Monthly Income Scheme (POMIS)

It is a government-backed retirement scheme that assures guaranteed and fixed returns to the investor. It is a low-risk investment option that offers good and stable returns. Thus, it is ideal for or senior citizens conservative investorswho have a low-risk appetite. Any Indian citizen can invest in this scheme, which has a tenure of 5 years.One should not consider investing in POMIS if they are looking for tax-saving investments as these schemes do not provide any tax exemption.

Public Provident Fund (PPF)

PPF is a government-backed, tax-saving investment scheme that provides a fixed rate of interest. It is a popularlong-term investment option due to the combinedbenefits of safety,returns, and tax-saving attributes. All Indiancitizensare eligible to open a PPF account. PPF accounts have a lock-in period of 15 years, but investors can make a partial withdrawal after 6 years. These schemes fall under the EEE (Exempt-Exempt-Exempt) category,wherein the interest earned, principal amount and the maturity amount is exempt from tax. The amount deposited towards PPF account in aparticular year can be claimed u/s 80C.

Bank Fixed Deposit (FD)

Fixed deposits are one of the safest investment options available to investors. These investment vehiclesare provided by banks and other NBFCs that permit investors to earn a fixed rate of interest. From the ease of flexibility to several options offered, bank fixed deposits are a boon to investors spread across varying income levels and age group. FDs are unaffected by market fluctuations, that ensures superior safety of the investments. Returns on bank FDs are pre-determined, and there is minimal risk to the capital; but they do have a lock-in period. The interest earned on fixed deposits is taxable, but investments are exempt under Section 80C of the IT Act. Thus, you can avail tax benefits up to Rs.1.5 lakh by investing in these tax-saving investments.

Senior Citizen Savings Scheme (SCSS)

It is a government-sponsored savings scheme offered to Indian residents aged 60 and above. The Government of India introduced this scheme with an intent to offer a steady and secure source of income to retired senior citizens. The maturity of this scheme is five years, which can be further extended by three years. The interest rate on SCSS is declared during the time of investment. It remains constant throughout the tenure and is unaffected by any subsequent alterations. SCSS offers one of the highest interest rates as compared to other savings-oriented investments in India. SCSS also offer tax benefits of up to Rs1.5 lakh under Section 80C. An investor can apply for the scheme through the public and private banks or the post office.

Risk-averse investors can also consider investing in debt mutual funds. Always consider your risk and investment goals without choosing the apt investment option for your portfolio. You can also take the services of an expert who can help you with the journey of financial planning. Happy investing!

Amit Kumar
Author: Amit Kumar

Amit is the founder of YoursNews. This is a next generation blog, proved that blogging is an art; focus on valuable ideas and genuine stories, rest everything will fall into place.

Amit Kumar

Amit is the founder of YoursNews. This is a next generation blog, proved that blogging is an art; focus on valuable ideas and genuine stories, rest everything will fall into place.

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