With falling markets and rising inflation, where to invest now?

As famously quoted by Warren Buffett “Never depend on a single income. Make investment to create a second source”. 

Investments are wise but they are risky as well. And, who wants to lose their hard-earned money? 

With rising inflation in the country, and currently stock markets being very volatile, there are a lot of risks in investing in equity. If you do not want to take big risks and you are aiming at a guaranteed long-term return, there are certain investment options available in India which are really good for new investors.

PPF

Public Provident Fund (PPF) is one of the most important and simple long-term investment options available in India. This is perfect for individuals who don’t want to take any risk in investing.

In 1968, the Finance Ministry’s National Savings Institute launched the PPF scheme, intending to help individuals make small savings and provide returns on the savings. PPF investment plan provides small savers with attractive interest rates and tax benefits to the investors.

Any citizen of India can open a PPF account, except a minor. One can open a PPF account with just a minimum investment of Rs 500 and the current PPF interest rate for Q1 FY 2022-23 is 7.1%.

Post office deposits

Post office deposits, also known as post office time deposits, are an easy and convenient alternative fixed deposit option provided by the Indian Postal Services, where an individual can earn guaranteed returns. 

These deposits are very similar to bank deposits where you save money for a certain period of time, earning guaranteed returns during a fixed tenure.

The objective of POTD is to provide an assured return of the deposit, depending on the duration of the deposit. There is no risk associated with this investment. 

Any Indian citizen above the age of 10, preferably with a post office savings bank account, can open an account with a minimum investment of Rs 1000, with an interest rate of 5.5% to 6.7% depending on the tenure of the deposit.

 

Therefore, don’t wait, invest your saved money and get long-term guaranteed returns.