|
5 things to look at in an FD
-
personalfn.com
Given the important role played by an FD in the risk-averse investor's portfolio, we present a 5-step strategy to help investors select the right FD.
Should you invest in Bhavishya Nirman Bonds?
-
personalfn.com
Assured return schemes tend to account for a significant share of an investor's portfolio. As the name suggests, these schemes offer assured returns i.e. investors know upfront how much return they are going to earn from their investments. Therefore, there is less uncertainty i.e. lower risk associated with investing in such schemes. Notwithstanding the benefits offered by these schemes, not all assured return schemes make worthy investments.
How to ace falling FD and FMP returns
-
personalfn.com
Investors would have noticed that returns on fixed maturity plans (FMPs) aren't what they used to be. Gone are the days when you could expect double-digit returns on FMPs (we are talking of the period around March 2007); presently FMPs yield a return of around 8%. It's the same story with fixed deposits (FDs) as well, with banks revising their deposit rates downwards. This has got risk-averse investors very worried and they are forced to re-evaluate their options.
Case Study: When experts err!
-
personalfn.com
While retail investors can be excused for making inappropriate investment decisions, one would certainly expect experts to do a better job.
Assured return schemes: Lost and Found
-
personalfn.com
Rationalisation loomed large over the assured return schemes segment in the year 2005. Omission of Section 80L (which entitled investors to tax-free interest income) and restrictions on investors eligible for participating in small savings schemes were some of the events that defined the segment in 2005. With declining returns and trimmed down tax sops, investors clearly had little reason to cheer.
3 options for FD investors
-
personalfn.com
Fixed deposits (FDs) have conventionally been popular investment avenues among risk-averse investors. With the proposition of assured returns and safety of capital, FDs are right up the alley of risk-averse investors. However, FDs have their fair share of inadequacies as well.
The FD option for retirees
-
personalfn.com
Investing for retirees can be a tricky proposition. Since retirees have no alternative sources of income like salary to fall back upon, ensuring that the investments provide for regular and stable income becomes pertinent. There is also a need to ensure that capital preservation is given the highest priority. Hence assured return schemes should typically occupy a larger portion of the portfolio vis-a-vis high risk-high return avenues like equities/equity-oriented funds. Given the constraints, retirees have a limited number of options to choose from.
More options for assured return investors
-
personalfn.com
Investors in assured return schemes can heave a sigh of relief. The Finance Minister has chosen to maintain status quo on the much-dreaded "EET" front. As a result, conventional tax-saving avenues like Public Provident Fund (PPF) among others will continue to remain tax-free on maturity for now. Most importantly, the Finance Minister placed fixed deposits on the comeback trail as far as tax benefits are concerned.
Fixed Deposits: On a comeback trail!
-
personalfn.com
For sometime now, we at Personalfn have advocated that investors should gear up for rising interest rates. Recent events like a hike in reverse repo rates in the Monetary Policy, uptick in home loan rates and fixed deposit (FD) rates only substantiate this view. In our view, the economy is undeniably headed for higher interest rates (higher than what most people expect) and investors on their part need to make necessary adjustments in their portfolios to gear up for the situation. In this article we shall discuss strategies for fixed deposit investors.
FDs, now moving with the times!
-
personalfn.com
Fixed income instruments are often condemned by critics on the grounds that in a rising rate scenario (like the present one), assured returns lead to a notional loss for investors. While investors in freshly issued instruments rake in returns at higher rates, existing investors continue to languish with lower returns at historical rates. Effectively the instruments' characteristic feature i.e. "assured returns" turns into a detriment.
|