Question

Your uncle wants to invest some money in any saving scheme. Name any two schemes which could help him. Write two benefits and two drawbacks of these schemes.

Answer 1

1. PPF 

Benefits:- 

1 Safe method 

2 Can take loan in the 5^th year 

3 Interest is exempted from tax

Drawbacks: 

1 Duration is long 

2 Can’t invest more than 1,50,000/- per annum

2. LIC 

Benefits:- 

High rate of interest 

Safe method 

Loans can be taken

Drawbacks: 

No liquidity 

Long term policy