Best Government Schemes to Invest In

Most investors opine that investing is all about getting super-quick returns. In fact, many actually follow that strategy. After all, who does not want a quick and high return for their investment, right? However, that does not work like that in the real world. That being said, there are government top investment plans which may double your investment with minimal risk, if at all.

In the real world, high return and low risk investments do not exist. These are not real, and whoever is telling you otherwise is trying to sell you something cheap and super-risky. You see, the more risks you take, the more returns you can expect. Thus the more returns you get, the more is your risk.

When picking investment avenues, you need to match your own risk tolerance levels. You may find some investment avenues which require a high tolerance level. These have a higher earning potential too. Others are more inflation-adjusted in comparison in the long term.

Top government investment schemes

Want to invest in the best government investment schemes? Here are the top five!

Sukanya Samriddhi Yojana or SSY

 This investment scheme was launched to encourage parents to give their daughters a good future, It was launched in 2015 under the Beti Bachao Beti Padhao initiative by the Prime Minister Narendra Modi and was for minor girls. One can open SSY accounts in the name of such a girl from her birth to the time before her 10th year. The minimum investment is Rs. 1000 and the maximum is Rs. 1.5 lakh. 

National Pension Scheme (NPS)

This is one of the best and well-known investment schemes offered by the Indian government. This is a retirement saving scheme which anyone can take advantage of, but government employees must take it mandatorily. NPS seeks to give an income after retirement. Anyone between 18 and 60 years of age can invest in the National Pension Scheme. Here you can divide your investment between equity, government securities and corporate bonds.

Public Provident Fund or PPF

The PPF is one of the oldest retirement schemes in the country offered by the Indian government. The amount you invest here, the interest you earn and the amount you withdraw are all tax-free. Investing in the PPF can thus save you money, apart from keeping your money safe from market upheavals. The current interest rate is 7.1%. You can have tax deductions under PPF of up to Rs. 1,50,000.

It has a comparatively longer investment time: 15 years. However, due to compound interest and it being tax-free, you save and gain a lot of money. It is safe since the investment principal amount is backed by the respective sovereign guarantee.

National Savings Certificate or NSC

It is given by the Indian government to promote saving among people. The minimum investment amount here is Rs. 100. There is no maximum investment amount. Its interest rate changes each year. You can have tax deductions under this till Rs. 150000. You can invest in the NSC only if you are an Indian citizen.

Atal Pension Yojana or APY

It is one of the most well known investment schemes offered by the government. It is directed at the workers of the unorganized sector. To be eligible, you need to be between 18 and 40 years, having a valid bank account. It was launched to encourage the poorer sections of the populations to save for their retirement. One can also take the APY if one is self-employed, considered the person fulfills all the other conditions as well. You can apply for this at your bank and post office. However, you can make contributions only till the age of 60.