If you are a conservative investor who prefers consistent returns over uncertainty, national savings certificate (NSC) could prove to be a good start. This savings bond is offered by India Post (as one of its savings schemes) and is backed by the government, which means that your returns will be guaranteed and your deposits will be safe.Features of NSC:
Like any investment, you will want to know what are the benefits of investing in the scheme.
Investing in a National Savings Certificate is better than equity-linked savings schemes (ELSS) in terms of market risks associated with them. ELSS, however, could fetch you higher returns in a period of 3 years, if you willing to risk your deposits. NPS (National Pension Scheme) gives you a higher return (8 to 10 percent), but your funds will be locked till retirement and are exposed to market risks as well. PPF (Public Provident Fund), on the other hand, gives you the same provisions as NSC and also the same interest rate but you cannot withdraw from the scheme for 15 years. Consider your investments as per your goals (retirement or short-term funding) and how much risk you are willing to take with the money you set aside.