Investment Advice for Defence Personnel
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Investment Advice for Defence Personnel

  • Highlights

  • DSOP Fund is a convenient investment

  • Tax-free bonds generate regular income

  • ULIP helps as both an investment and insurance

  • Company fixed deposits offer high returns

Defence personnel know how important it is to make calculated decisions and the same rule applies to investments. It is wise to focus on investment options that are not volatile. You want to be able to provide financial security to your family no matter what the circumstances. Keeping these factors in mind, here are four secure investment options that suit your line of work.

DSOP Fund or Defence Services Officers Provident Fund

Being a risk-free investment, the DSOP Fund or Defence Services Officers Provident Fund is recommended for defence personnel. It is easy to manage and maintain as the subscription instalments are automatically deducted from your monthly salary and credited to your provident fund account. This makes the investment hassle-free. It is also easy to keep a track of your investment as you receive a payslip on a monthly basis.

Tax-free bonds

Tax- free bonds help generate a regular source of income. They are issued for a fixed period of time and carry a coupon rate of interest. The interest gained on these bonds is completely tax-free which makes it a suitable choice. These bonds are long-term investments as the tenor is usually 10-20 years. So, ensure that you can keep aside those funds till the maturity date. The companies are also listed on stock exchanges.

The bonds are tax-free, redeemable and non-convertible. IRFC, NTPC, HUDCO, NHAI, PFC and REC are some of the public undertakings that raise funds by issuing tax-free bonds.

ULIP

The Unit Linked Insurance Plan is another recommended investment for defence personnel. This investment also includes insurance. The policy can be paid for on a monthly or annual basis. Part of the premium amount is used to establish and maintain life insurance while the remaining amount is put towards the investment. The term of the policy can start from 5 years and go up to 15 years while accumulating units. You can choose between investing in equity or debt.

3 Common Myths about Fixed Deposits Bajaj Finance

Company fixed deposits

Company fixed deposits are known to provide a higher rate of interest than banks. Reliable companies with a stable rating like ICRA’s MAAA and CRISIL’s FAAA are high credible and safe. The Bajaj Finance Fixed Deposit is one such company fixed deposit that offers an attractive interest rate at 7.85% in addition to other benefits like flexible tenors, assured returns, nominal investment amounts and online account application and management.


The above options provide a good rate of returns along with security and convenience. Opt for these to build your savings while securing your family’s future.

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