I am a 27 year old from India, My salary is 4,20,000 per annum.
I don't have any insurance or any other investment plan right now.
I want to invest 50,000 Indian rupees, such that I get a good return and minimize my taxes too.
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Fundamental rule of investing money :
Now come to the point, best money investment
Best way to invest around 50k Indian rupees and save Tax
There is nothing "Best". There are multiple options that are available under 80C and you need to select one that suites you best. There are market linked options like ELSS, or assured returns like 6 years FD, or PPF or Term Insurance or other such options.
The best way to invest 50k Indian rupees is in a 5 Year NSC(National Saving Certificate which can be obtained at the Post Office) yielding interest 8.1% p.a. (at present), which is more than the effective FDR interest rate offered by any bank in India. Investment in an NSC also permits a deduction u/s 80C of the Income Tax Act, 1961. So, investing in an NSC will save tax and get a higher return/benefit for your investment.