There are several investment plans available in the market that helps investors to start investing with small amounts. These are also known as Small Investment Plans. Here, the individuals can earn decent returns on small amounts of money. They are best for people looking to invest their extra funds for better returns without exposing them to high risks associated with large lump sum investments. Let us discuss some of the best ones.
Public Provident Fund
PPFs are one of the most sought-after small investment plans due to triple benefits associated with them- investment security, retirement funds and assured returns. It is a government-backed long-term saving plan where accounts can be opened from as low as Rs 100. Interest rates are revised every quarter by the Indian government. Any person who is an Indian resident can avail of this plan. It s best for people having no liquidity concerns but are looking to make regular savings. Tax benefits associated with this fund are also a big draw for many investors.
Post Office Monthly Income Scheme
This is a small investment plan backed by the Indian government and formulated by the Indian Post. It allows the investor to set aside a small sum of money every month on which interest is paid at the applicable rate monthly. The interest rates are revised and fixed every quarter by the government. It is best suited for retirees looking to get regular returns on their investment. The assured returns under this scheme make it a lucrative plan for many risk-averse individuals.
Systematic Investment plan
Also known as SIP, it is becoming very popular among people looking for small investment schemes with higher returns than other conservative plans. These plans allow the investors to invest in mutual funds and other market-linked securities at regular intervals. It can be started from as low as Rs 100. It has the potential of giving higher returns in the long term with the additional benefits of compounding power of money and rupee cost averaging.
National Savings Certificate
NSCs are popular tax-saving investment instruments that can be purchased at any post office. It is best for risk-averse investors who are looking to diversify their investment portfolio with a fixed income plan. Interest rates for these certificates are annually revised by the government. Investments under this plan start from as low as Rs 100 with no maximum limit.
Different investors have different investment objectives and risk tolerance that decides the plan they ultimately choose. Small Investment plans are best for investors who are neither capable nor willing to invest a big amount. For more details regarding such plans, call our financial experts today for better advice.