Risk-proof your future with equities
Given the diminishing returns on risk-free investments, even cautious investors need to look beyond them -- at equity, for example
Investors with a low risk appetite have seen their returns fall quite dramatically in the recent past, be it on small savings instruments like Public Provident Fund (PPF), National Savings Certificates (NSC), Kisan Vikas Patras (KVP) and Post Office Monthly Income Schemes or fixed/ recurring deposits in banks. Unlike the early 2000s that saw double-digit rate of returns, the interest rates for small savings instruments are currently hovering around 8 per cent.
Interest rates on small savings schemes have been linked to government bonds since 2011. The 15-year PPF account currently offers 7.6 per cent interest, the same as NSCs, while KVPs offer 7.3 per
