5 Smart Investment Options for Salaried Employees
by priyanka roshan | july 10, 2024
1. Employee Provident Fund (epf)
The EPF is a government-backed scheme providing financial security during retirement.
Both employee and employer contribute, earning tax-free interest. It’s ideal for long-term savings.
2. Public Provident Fund (PPF)
PPF is a risk-free, long-term savings scheme offering attractive interest rates and tax benefits under Section 80C.
It has a 15-year lock-in period, with partial withdrawals allowed after the 7th year.
3. Equity-Linked Savings Scheme (ELSS)
ELSS are equity-focused mutual funds offering high returns and tax savings.
With a three-year lock-in, they provide tax deductions under Section 80C & have the shortest lock-in among tax-saving options.
4. National Pension System (NPS)
NPS is a government-backed pension scheme that builds retirement savings through equities, bonds, and securities.
It offers tax benefits under Sections 80C & 80CCD(1B) and provides annuity options post-retirement.
5. Mutual Funds
Mutual funds invest pooled money in a diversified portfolio of stocks, bonds, and securities, offering flexibility, liquidity, and significant returns.
They provide diversification, professional management, and schemes for various investment goals.