Financial planning for wife
In today’s time, merely saving money is not enough. If you want your wife’s future to be secure and financially strong, then it is very important to make the right investment. Smart investments can create a huge corpus for your wife in the long run and make her financially independent. Let us know 5 best schemes which are safe and also give good returns.
Equity Mutual Funds (via SIP): Bumper returns in the long run
If you are willing to take some risk, then equity mutual funds are a great option. By investing small amounts through SIP, a big fund can be created in the long run. You can start a SIP with ₹500 in your wife’s name and invest in large-cap or multi-cap funds with a good track record. In the long run, it can give much higher returns than FD or PPF. Note that mutual funds are subject to market risk, so get complete information before investing.
Public Provident Fund (PPF): Safe and tax-free investment
PPF is a government scheme which is completely safe and it gives 7.1% compound interest annually. The money received on this is completely tax-free. You can open a bank or post office account in your wife’s name and deposit ₹500 to ₹1.5 lakh annually. This fund can grow manifold after a period of 15 years. The biggest feature of PPF is that there is no risk of capital loss and money grows faster with tax savings.
National Pension System (NPS): Both retirement and tax saving
NPS is a great retirement scheme for the long term. In this you can choose the option of investing in both equity and debt. An additional tax exemption of ₹ 50,000 is also available under Section 80CCD(1B) of Income Tax. This plan helps in creating a bigger corpus in the long run along with retirement security for your wife. NPS also reduces expenses and provides flexibility in investment.
Sovereign Gold Bond (SGB): Benefits of security and interest of gold
There is a worry about theft or making charges in buying physical gold, but SGB is an easy alternative to this problem. In SGB issued by the government, you also get 2.5% annual interest along with the market value of gold. This is for a period of 8 years, but you can withdraw it after 5 years. There is no capital gains tax on maturity. This investment is a great combination of gold-like security and returns for your wife.
Flexi-cap mutual funds: Benefits in every market condition
Flexi-cap gives the fund manager complete freedom to invest in large, mid and small-cap companies. Because of this, there is a possibility of getting good returns even in changing market conditions. You can start SIP in your wife’s name and enjoy the benefits of wealth creation in the long run. Risk also reduces due to diversification.