Best Investment Scheme / A fund of lakhs can be created with just ₹1000 every month, know which scheme is the best.

Best Investment Scheme: People often think that investing requires a large sum of money, but the truth is that if you invest small daily savings in the right place, you can build a substantial corpus over time. Today, we'll tell you how much money you can accumulate if you save just ₹1,000 every month and invest in four different schemes—PPF, SIP, SSY, and Post Office RD—and which scheme might be best for you.

1. PPF: A Safe and Tax-Free Investment

The Public Provident Fund (PPF) is a government scheme that is not only completely safe but also offers tax exemptions. Currently, PPF offers an annual interest rate of 7.1%, calculated on a compounded basis.

Investment period: 15 years

Monthly investment: ₹1,000

Total investment: ₹1,80,000 (1,000 × 12 × 15)

Interest: Approximately ₹1,45,457

Maturity amount: ₹3,25,457

Features: PPF offers partial withdrawals after 5 years, allowing you to withdraw funds if needed. Additionally, this scheme offers tax-free returns, ensuring no tax on your savings.

Best for: PPF is a great option for those who are risk-averse and looking for a safe investment for the long term.

2. SIP: Smart Investment in Mutual Funds

Systematic Investment Plan (SIP) is a popular way to invest in mutual funds. If you are willing to take a little risk and want higher returns, SIP can be an excellent option. Equity mutual funds can yield an average annual return of 12% (although this depends on market risk).

Investment period: 15 years

Monthly investment: ₹1,000

Total investment: ₹1,80,000

Estimated return: Around ₹2,95,931

Maturity amount: ₹4,75,931

Features: With SIPs, you can withdraw money at any time and increase your monthly investment amount over time. This flexibility makes it attractive for those seeking higher returns over the long term.

Who is best for: SIPs are a great option for young investors who have the ability to take risks and understand the ups and downs of the market.

3. SSY: Best scheme for daughters

Sukanya Samriddhi Yojana (SSY) is a special scheme launched by the government for daughters. This scheme can only be opened in the name of daughters under the age of 10 and currently offers an annual interest rate of 8.2%.

Investment period: 15 years (maturity at 21 years)

Monthly investment: ₹1,000

Total investment: ₹1,80,000

Interest: Approximately ₹3,74,206

Maturity amount: ₹5,54,206

Features: Interest earned under SSY is completely tax-free. This scheme helps build a large corpus for major expenses like daughters' education and marriage.

Who is best for: SSY is the best scheme for parents with daughters who want a safe and tax-free investment option for their daughters' future.

4. Post Office RD: A Small But Safe Investment

Post Office Recurring Deposit (RD) is a simple and safe investment option, suitable for those who want to make regular savings with low risk. It currently offers an interest rate of 6.7% per annum. The tenure of an RD is 5 years, which can be extended for another 5 years.

• Investment Period: 5 Years
• Monthly Investment: ₹1000
• Total Investment: ₹60,000
• Interest: ₹11,369
• Maturity Amount: ₹71,369

For 10 Years (Two 5-Year Term):

• Total Investment: ₹1,20,000
• Maturity Amount: ₹1,70,857

Pros: RD investments are completely safe and are good for those who want to invest for a short period.

Who's Best For: For those seeking a safe investment for a short period and needing to develop a regular savings habit, RD is an easy and effective option.

Which plan is best for you?

• If you're risk-averse and want tax benefits: PPF and SSY are better suited. SSY offers higher returns, especially for daughters.
• If you're willing to take a little risk for higher returns: SIP is right for you, as it can deliver the highest returns over the long term.
• If you're looking to invest for a short period: Post Office RD is an easy and safe option.