JUST a decade ago, the most sought after investment option were small savings +schemes.

Though many investors have taken a liking to equities now, some allocation to safe fixed income investments helps to balance the portfolio.

Here are the popular small savings schemes you can include in your investment portfolio.

1. Kisan Vikas Patra (KVP)
The Kisan Vikas Patra or KVP was launched with an eye on the large potential in the rural areas. Investments in KVP double every 8 years and 7 months. The rate of interest is 8.41 per cent pa approximately.

• Certificates are available in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000, Rs 10,000 and Rs50,000.
• You can purchase the certificates at any Post Office.
• There is no maximum limit on the number of certificates purchased.
• An identity slip will be issued to you on request.
• On maturity, you can encash the certificates at the issuing post office. They can also be encashed at any other post office, once the officer-in-charge verifies your identity.
• You can also nominate someone to receive the money.

2. Post Office Monthly Income Scheme
If you want to receive a monthly income, this scheme may be right for you.

• You can open an account with any post office either singly or jointly, with a nomination facility available.
• Interest rate of 8 per cent pa is payable monthly.
• Minimum investment amount is Rs 1500 and maximum is Rs 450,000 for single accounts and Rs 900,000 for a joint account.
• Maturity period of the scheme is six years.
• You can transfer your account from one post office to another across India, without any cost.

Read:

• Giving the bonus a MIS
• Bond with the best

Photograph: Koichi Kamoshida/Getty

1 | 2 |  

e-mail: Team Wealth

Suggest a story idea! Write to us!