1 Lakh Investment Plan

1 Lakh Investment Plan: Options to Explore

To generate a steady source of income without risking too much of your funds, you can explore the following investment plans:

Mutual Funds

Mutual funds offer a smart and reliable opportunity for investors seeking to generate returns without a substantial investment. The best part? Mutual funds are managed by professional fund managers who offer a sense of security that your money is invested in a profitable fund. Here’s what you can explore:

• Equity Mutual Fund: These are mutual fund schemes that primarily invest in equity stocks, offering stable and steady returns.
• Debt Mutual Funds: These are mutual fund schemes that primarily invest in fixed-income instruments, such as corporate debt securities, government and corporate bonds, and money market instruments.

National Pension Scheme

The National Pension Scheme is a government-backed scheme regulated by the Pension Fund Regulatory and Development Authority. Under the scheme, you can choose to invest your money in various types of assets, such as liquid funds, corporate funds, and fixed deposits, and generate returns through interest payments.

What You Should Know?

• Under the NPS, there are two types of accounts: Tier I and Tier II.
• A Tier I account is primarily a pension account with restricted withdrawal options, while a Tier II account is a voluntary account that can be used for liquidity purposes.
• You can claim tax deductions up to ₹2 lakhs in one financial year under the Income Tax Act.

Public Provident Fund

The Public Provident Fund is a government-backed scheme that offers a reliable option for long-term investment, even with a small investment amount. PPF has become widely popular due to its typically impressive returns.

What You Should Know?

• The Public Provident Fund has a lock-in period of 15 years and can be extended indefinitely every 5 years.
• A PPF account can be opened at any authorised post office or a bank branch.
• Any individual above the age of 18 years can open a PPF account.
• Under the PPF account, the maximum number of deposits that can be made in one year is 12.

Pro Tip: Try depositing your investment into your PPF account before the 5th of every month to earn interest for the entire month. This is primarily because interest on a PPF account is credited at the lowest balance from the close of the fifth day and the end of every month.

Bank Deposit

If you are looking for a safe investment option that does not have a high minimum investment requirement and generates steady returns, then bank fixed deposits are worth exploring. Opening a bank fixed deposit is a straightforward process and does not require tedious paperwork.

What You Should Know?

• Bank fixed deposits can be opened with your respective bank branch.
• You can generate returns through interest payments.

Did You Know that as a depositor under a bank fixed deposit, you are insured up to a maximum of ₹5 lakhs for both principal and interest amounts according to the Deposit Insurance and Credit Guarantee Corporation?

Senior Citizen Savings Scheme

The Senior Citizen Savings Scheme was introduced under the Post Office Savings Scheme by the Government of India in 2004. The scheme focused on helping individuals aged 60 years and above generate a steady source of income, even with a minimal investment amount.

What You Should Know?

• Any resident of India above the age of 60 can open an account under the SCSS.
• The SCSS account has a tenure of 5 years and can be extended for an additional 3 years.
• SCSS account holders can easily deposit their amount up to ₹1 lakh through cash.

Did You Know that the interest payments under the SCSS account are quarterly revised by the government, and for the first quarter of FY 2025-2026, the interest rate is fixed at 8.2%?

Summing up

Investing in a promising instrument is not all about entering with big pockets. You can start small to explore the market and build capital as you go further. Just as with any other investment decision, be sure to conduct thorough due diligence.

To explore investment options with promising returns and additional benefits, you can simply head to the jioinsure.in.