Neutral impactEconomy
PPF, NSC, KVP or SSY: How many small savings schemes should you have in your investment portfolio
Mint 3 hrs ago·6 Sept 2026, 1:55 am
Small savings schemes like the Public Provident Fund (PPF), National Savings Certificate (NSC), Kisan Vikas Patra (KVP), and Sukanya Samriddhi Yojana (SSY) are popular for their safety and tax advantages. However, holding all of them simultaneously is often unnecessary and can reduce portfolio efficiency. These schemes serve different purposes, and spreading your money across too many can make it difficult to manage or miss out on better opportunities elsewhere.
For most investors, selecting one or two schemes that align with specific financial goals is a better strategy. For instance, SSY is ideal for a daughter's future, while PPF offers a mix of safety and long-term tax savings. Experts suggest focusing on liquidity, returns, and tax benefits to build a more streamlined portfolio. This approach helps in maximizing the benefits of your investments without cluttering your financial plan.
Moving forward, investors should review their existing holdings to see if they are overexposed to these schemes. Balancing them with other asset classes like equities or mutual funds can further diversify risk. It is also important to stay updated on interest rate changes, as these schemes are periodically revised by the government. A focused and goal-oriented approach will ensure your savings work effectively for you.
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- Category: Economy.
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