Some Tax Saving Tips
Fixed Deposits (FD) —> You will get cumulative and safe interest but deposit money in a bank FDs which are “Tax Savings” for a fixed tenure.
Tax Saving Mutual Funds (“MF”) —> This is the highest return given option and also the riskiest one. This option has a lock in period( generally 3 years). One who deposit in it can’t get back their money within the locking period, from the time you put them into MF.
Public Provident Fund (PPF) —> This is almost same as normal provident fund, the difference is it is a scheme for a tensure of 15 years and you can withdraw the amount only once and that too after 5 years. PPF account can open from any SBI branch or post office. You have to deposit minimum amount i.e. one entry per year to continue healthy scheme.
Life Insurance Corporation India(LIC). —> It is advisable to secure your life against any danger. LIC providing various schemes out of which you can opt the best suited one.
NSC bonds —> NSC stands for National Saving Certificate bonds. These are available at Post-Office and you will get ssafe return on this after a fixed tenure.
These are the widely used investment plans now a days. If you are a risk taker then go for 100% MF, if you are a moderate risk taker then go for 60% MF, 20% PPF and 20% FD. If you don’t want any risk then go for 100% PPF,FD and/or NSC.