There was a lot of pressure on the stock market in March. Nifty 50 fell by about 11%, which is the biggest fall since 2020. The main reason for this was tension in West Asia and supply disruption in the Strait of Hormuz, due to which crude oil prices increased and concerns about inflation increased. In such an environment, investors are now paying attention to options with stable returns.
National Savings Certificate (NSC)
NSC gives around 7.7% returns, whose tenure is 5 years. It is supported by the government, so there is very little risk in it. Tax exemption is available on investment, but the interest is taxable.
Public Provident Fund (PPF)
PPF is a long term investment (15 years), which gives returns of around 7.1%. Its biggest feature is that the interest and maturity amount are tax-free.
RBI Floating Rate Savings Bond
These bonds of Reserve Bank of India are giving returns of about 8.05%. Their tenure is 7 years and interest is paid every 6 months.
Government Bonds (G-Secs)
Government securities give returns of 6% to 7.5%. These are safe, but if sold before maturity, the price may fluctuate.
debt mutual fund
These funds invest in government bonds, corporate bonds and money market instruments. Returns are not fixed and depend on the market.
- Liquid funds: 47%
- Short Duration Fund: 6.5-7.5%
- Long Duration Fund: High volatility
Company Debenture (NCD)
These debentures issued by companies can give returns up to 79%. There are both secured and unsecured types. With higher returns the risk also increases.
Corporate Bond and Company FD
These common banks give more interest than FD, which can range from 7% to 12%. But before investing in it, definitely check the credit rating of the company.
Recurring Deposit (RD)
Post Office RD gives around 6.7% returns. In this, a fixed amount has to be deposited every month, which makes disciplined saving easy. Amidst the uncertainty in the stock market, investment options with 68% returns are becoming attractive for investors. Government schemes are the safest, while debt funds and corporate investments can give better returns but investments should be made only after understanding the risks.