Looking to invest? Small savings schemes back in favour with Indian public

Among other factors responsible, the real estate sector is unable to offer returns to the public owing to a crisis after demonetisation, implementation of GST, and creation of a real estate regulator

Confirming the recent shift in public preference for parking money in financial instruments like mutual funds and insurance schemes rather than bank deposits and physical assets, small savings schemes have re-emerged as a lucrative investment option for the Indian public.

Investments by the public in small savings schemes rose to Rs 1.55 trillion in 2017-18, a 33 per cent rise over Rs 1.17 trillion in 2016-17,  the data with the National Savings Institute (NSI) accessed by Business Standard shows. 

More importantly, contributions to the National Small Savings Fund—a pool of all small savings schemes—have reached a record in 2017-18 from