Best government investment scheme.

[Anika]

As a student, which type of government investment scheme is best? I have a small amount of ₹500-1000 monthly, so recommend me some specific options that give me a favorable return rate but have a low risk rate.

[Ritika]

For a student, here are some government-backed schemes suitable for you:

1. PPF is a secure and long-term investment scheme that gives you a 7.1% interest rate. You can start investing with ₹500 up to ₹1.5 lakh annually. It gives you tax benefits also.

2. RD is also another suitable option for savings; it gives you a 7-8% interest rate annually.

These schemes are extremely secure and provide returns in the end; there is no risk involved. But if you can handle some risk, then Mutual funds are also a suitable option. You will get good returns, but there is some risk factor involved.