Share Market Tips: There has been a decline in the Indian stock market on the last day of the trading week. In fact, the American market also remained in decline, due to which its effect was also shown on the Indian stock market and foreign investors sold fiercely. As a result, on Friday, July 1, 2022, the Sensex fell by 111 points and the Nifty fell by 28.20 points.
where to invest
At the same time, there is a sound of recession in the whole world. Many companies are also laying off their employees. Along with this, there was a decline in the stock market as well. In such a situation, there is a question in the mind of investors as to where to invest at such a time. So today we are going to tell you about some safe investments.
Bank Fixed Deposits (FDs)
Bank FDs are considered to be one of the safest investment options in India as there is hardly any incident of a bank defaulting on FDs. Bank FDs offer a much higher interest rate than a regular savings bank account. Investment in a 5-year tax saving FD is covered under Section 80C of the Income Tax Act, 1961 and by investing in it, investors can deduct up to Rs 1,50,000 annually. The salient features of bank deposits are that you get assured returns over time. Best suited for risk averse investors and partial withdrawal and balance loan is available.
Public Provident Fund (PPF)
PPF is a government backed investment scheme. PPF investment has a lock-in period of 15 years. PPF is considered as one of the safest investments as the scheme gives sovereign guarantee. Like bank FDs, PPF offers a much higher rate of interest than a regular savings bank account.
The salient features of PPF are that it is best suited for long-term financial goals as the scheme comes with an extended lock-in period of 15 years. The investment is not tied to the markets and hence provides assured returns over time. On maturity, you have the option to redeem the entire corpus or extend the account in blocks of five years.
National Pension Scheme (NPS)
NPS is another government backed retirement scheme. The scheme is managed by the Pension Fund Regulatory and Development Authority (PFRDA). NPS is a combination of various investments like liquid funds, fixed deposits and corporate bonds. There are many plans under NPS, you can choose according to your requirement. The rate of interest is also different in different funds. The salient features of NPS are that the scheme is open to the membership of employees working in all sectors. The scheme provides tax exemption up to Rs 2 lakh per annum under the provisions of the Income Tax Act, 1961.
Investing in gold is a traditional investment. Indians love to buy gold. Investing in gold is done in the form of buying gold jewelery and coins. Apart from holding physical gold, one can invest in gold by investing in Gold ETFs and Sovereign Gold Bonds.