Which of the following are advantages of National Small Savings Fund 1 They offer above market rate ...........

Economic Affairs Public Finance and Debt Management

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Which of the following are advantages of National Small Savings Fund?

1.They offer above market rate of interest.

2.They are almost risk free investments.

3.They provide favorable tax breaks both at the time of deposit and withdrawal.

Select the correct answer using the codes given below

1 only

3 only

2 and 3 only

1, 2 and 3

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Explanation:

They offer above-market rates of interest. (Correct - National Small Savings Fund (NSSF) schemes often offer competitive interest rates, which can be above the market rates.)

They are almost risk-free investments. (Correct - Investments in NSSF are considered relatively safe as they are backed by the government, and there is minimal risk involved.)

They provide favorable tax breaks both at the time of deposit and withdrawal. (Correct - NSSF schemes may offer tax benefits at the time of deposit and withdrawal, making them tax-efficient investment options.)

So, the correct combination is "1, 2, and 3," which corresponds to option 4.