Investment: These investment schemes are best for your wife, and you will get good returns in the future...
In today's times, simply saving money isn't enough. If you want your wife's future to be secure and financially strong, making the right investments is crucial. Smart investments can build a substantial corpus for your wife over the long term and make her financially independent. Let's explore five excellent schemes that are both safe and offer good returns.
Equity Mutual Funds (via SIP): Bumper Returns in the Long Term
If you're willing to take a little risk, equity mutual funds are a great option. Investing small amounts through SIPs can build a substantial corpus over the long term. You can start a SIP in your wife's name with ₹500 and invest in large-cap or multi-cap funds with a good track record. Over the long term, these can deliver significantly higher returns than FDs or PPFs. Keep in mind that mutual funds are subject to market risk, so seek complete information before investing.
Public Provident Fund (PPF): A Safe and Tax-Free Investment
PPF is a government scheme that is completely safe and offers 7.1% annual compound interest. The money earned is completely tax-free. You can open an account in your wife's name at a bank or post office and deposit between ₹500 and ₹1.5 lakh annually. Over a period of 15 years, this fund can grow exponentially. The biggest advantage of PPF is that there is no risk of capital loss, and the money grows rapidly with tax savings.
National Pension System (NPS): Both Retirement and Tax Saving
NPS is an excellent retirement scheme for the long term. You can choose to invest in both equity and debt. You also get an additional tax deduction of ₹50,000 under Section 80CCD(1B) of the Income Tax Act. This scheme provides retirement security for your wife and helps build a large corpus over the long term. NPS also has lower expenses and offers investment flexibility.
Sovereign Gold Bond (SGB): The benefit of a gold security and interest
Buying physical gold involves the worry of theft or making charges, but SGB offers an easy solution to this problem. Government-issued SGBs offer 2.5% annual interest on the market value of gold, along with a maturity period of 8 years. Withdrawals are available after 5 years. No capital gains tax is levied on maturity. This investment offers a great combination of gold-like security and returns for your wife.
Flexi-Cap Mutual Funds: Benefits in All Market Conditions
Flexi-cap funds give the fund manager complete freedom to invest in large-, mid-, and small-cap companies. This offers the potential for good returns even in changing market conditions. You can start a SIP in your wife's name and benefit from long-term wealth creation. Diversification also reduces risk.
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