Independence Day: To get freedom from volatility, explore THESE 6 investment options

This Independence Day, you can aim to get freedom from volatility by choosing to invest in safe investing schemes which provide assured returns. These schemes make sure that the capital of investors is protected and the return moves in one direction only i.e, upward.

However, some of these schemes have a lock in period. For example, National Savings Certificate (NSC) has a lock-in period of five years and Public Provident Fund (PPF) has 15 years. Here, we give a lowdown on 6 investing schemes that can keep your capital safe.

6 schemes to stay free of volatility

I. Fixed Deposits (FDs): You can invest in a fixed deposit scheme of a prominent bank – public sector or private. Most banks offer anywhere between 5-6 percent per annum on one-year deposit. Some NBFCs and small finance banks offer relatively higher interest on deposits.

II. National Savings Certificate (NSC): These schemes offer 7.7 percent return. And one can open an account with a minimum contribution of ₹1,000 and in multiples of ₹100. There is no maximum limit of investment.

III. Public Provident Fund (PPF): This is another assured return scheme offering 7.1 percent return on investment. One can invest anywhere between ₹500 to ₹1.50 lakh per annum in a year. However, one thing to note is that it has a lock-in period of 15 years.

IV. Debt mutual funds: Another investment option is to invest in debt mutual funds. These also give assured returns just like fixed deposits. The return could vary widely between the category of scheme – money market, short duration, long duration, liquid and overnight.

V. National Savings Recurring Deposit: Known as one of the small savings schemes, this investment option delivers 6.7 percent per annum. The account can be opened with ₹100 and there is no maximum limit.

VI. Recurring Deposit: Also known as RD, these schemes enable investors to deposit small amount at regular intervals – say every month for earn a higher rate of interest. These accounts can be opened with a bank or post office. National Savings Recurring Deposit Account (RD) gives 6.7 percent per annum.

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