Investing In Balanced Funds

This is something much safer than stocks and equities while giving as much tax benefit. Balanced funds invest in both stocks and fixed income instruments with the dual aim of supplying you with a fixed income and in the long term, the growth of your capital amount. The long term capital gains from balanced funds is tax free and so is the dividend gained from balanced fund. Then there's the assuring prospect of receiving a regular income.

Public Provident Fund (PPF)

The Public provident fund (PPF) is run by the government of India, where you can invest up to 1, 00,000 in a year. The lock in period is 15 years. You receive the interest amount in regular intervals. The most attractive feature of the PPF is the interest you earn on your investment is tax free. And your investment makes you eligible for a deduction on your income under article 80c of the Income Tax Act.

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