Before investing in government schemes, consider the interest rate and its growth over 10-20 years. For mutual funds, analyze the fund's average returns before investing.
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SIP Investment
SIP Investment:
SIPs allow investors to regularly invest a fixed amount in mutual funds. However, SIP investments are subject to market risks but have yielded annual returns from 12% to 15%.
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National Pension Scheme (NPS)
National Pension Scheme (NPS)
NPS is a government-regulated pension savings scheme offering market-linked returns, typically 8% to 10%. Investors benefit from tax exemptions under sections 80C and 80CCD(1).
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Senior Citizens Savings Scheme
Senior Citizens Savings Scheme (SCSS)
SCSS is for those aged 60 and above, offering a fixed 8.20% annual interest rate for five years, extendable for three more.
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Public Provident Fund (PPF)
Public Provident Fund (PPF)
PPF is a long-term investment with a 15-year lock-in, currently offering 7.10% annual interest. PPF investments are tax-exempt under Section 80C.
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Retirement Planning
Investing Rs 10,000 monthly for 20 years: With a 10% annual return in SIP, your investment becomes Rs 76 lakhs. In NPS, with 9% return, it's Rs 66 lakhs. In PPF, at 7.10%, it's Rs 52 lakhs.
