Mother's Day 2024: Public Provident Fund (PPF) among six investment options for single mothers
Investing in PPF is an excellent option for single mothers. “The lock-in period of 15 years helps them achieve their long-term financial goals, such as raising funds for children's higher education and purchasing the dream house," said Archit Gupta, Founder and CEO, of ClearTax Investing in mutual funds is an excellent option for single mothers and everyone else. There are different types of mutual funds, so investors should pick the one that fits their financial goals, risk tolerance, and investment timeline.
According to Archit Gupta, consider equity funds, especially large-cap or blue-chip funds, if you aim for long-term investment growth. For medium-term goals, hybrid funds are a good choice. To meet short-term financial goals, consider arbitrage and liquid funds.
Investing in mutual funds through a monthly systematic investment plan (SIP) can help you build financial discipline. Government banking schemes cater specifically to retired individuals, offering attractive interest rates on investments. “Single mothers over 60 can benefit significantly from schemes like the Pradhan Mantri Vaya Vandana Yojana.
The PMVVY offers an interest rate of 7.4%, deposited monthly into the policyholder's account. This provides a reliable source of income, especially when compared to conventional FDs. Additionally, while there's a maximum investment limit of INR 15 lakh under this scheme, the returns can be significantly higher," aid Bhuvan Rustagi, Co-founder & COO, Per Annum.
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