4. Open a Public Provident Fund (PPF) account

Investor who is planning for a long term goal, a public provident fund is one of the best options. Public Provident Fund or PPF is one of the most accepted investment options in India for fixed income purpose. The PPF allow the members to make contributions to the fund and also avail certain tax exemptions under the provisions of the Income Tax Act.

The minimum amount of investment in a PPF account is Rs 500 which makes it very convenient for any one with any level of income to start it. It comes with a lock-in period of 15 years which makes the PPF account a long term investment option. Once the tenure is complete you can also opt to extend the lock-in period of the account up to a block of 5 years. The limits on investment, tax exemptions and rate of interest remain the same even during the extension period.

Want To Transfer Your PPF Account? Here's How

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