You must learn to live with it. And I concede FD rates have gone down sharply. I copy the current FD rates from the SBI website. A common refrain is, “Fixed Deposits are giving nothing. I want to invest in debt mutual funds to get a better return”. Why? Because when we compare past 1-year returns of a debt mutual fund with the current 1-year Fixed deposit rates, … [Read more...] about Bank FD rates have gone down sharply. What should you do?
If you are looking for a one-word answer, my answer is “Yes”. You must continue investing in Public Provident Fund (PPF). In the remainder of the posts, we look at why. PPF interest has been cut to 7.1% p.a. for the April-June 2020 quarter. This is the lowest PPF interest rate has ever been. The impact of the rate cut in PPF and SSY (Sukanya Samriddhi Yojana) accounts … [Read more...] about At 7.1% p.a., Should you invest in PPF?
NPS vs PPF is not an easy question to answer, but why should you face such a question? Because no one has an unlimited amount of money to invest. Therefore, when we must make an investment choice, "This or That" or "X vs Y" or "Which is better" questions invariably pop up. Whether we talk about tax-saving or retirement or creating wealth, you will face such dilemmas. … [Read more...] about NPS vs PPF: Which is better?
Every few months, we see Non-convertible debenture (NCD) issues from various companies. As on date (September 7, 2019), the NCD issues from Tata Housing, Aadhar Housing Finance and IndiaBulls Commercial Credit are live. Should you invest in such NCDs? Well, in this post, I will not review any particular issue of NCD. I will focus the benefits and risks involved in investing … [Read more...] about Should you invest in Non-Convertible Debentures (NCDs)?
Last week, the interest rate for PPF, Sukanya Samriddhi Scheme, Senior Citizen Savings Scheme, NSC and other small savings schemes were cut by 0.1% p.a. Let’s look at what the rates are. Latest Interest Rates for PPF and other Small Savings Schemes I am copying a snapshot from Ministry of Finance notification dated June 30, 2017. Here are the latest interest … [Read more...] about Interest rate for PPF and other Small Savings Schemes cut by 0.1%. What should you do?
With non-participating traditional life insurance plans, returns are known upfront. Unlike participating plans such as LIC New Jeevan Anand, the final outcome depends on annual bonuses and final bonus. There is no such concept in non-participating plans. The name (non-participating) itself suggests that the policyholders will not participate in the profits on the insurance … [Read more...] about Non-Participating Traditional Life Insurance Plans: Why this fixation with Sum Assured?
PPF interest rate has been cut from 8% p.a. to 7.9% p.a. for the April-June quarter. This is the first time PPF interest rate has fallen below 8% p.a. By the way, PPF is NOT the only investment product for which the interest rates have been cut. Interest rates for other small savings schemes (Sukanya Samriddhi Scheme and Senior Citizens Savings Scheme) have also been cut by … [Read more...] about PPF rates cut again and the Equity brigade will rejoice
A few weeks back, a prominent person in MF industry published an article in Economic Times arguing that investors should completely PPF in favour of equity funds (ELSS to be specific). The primary argument was the PPF provides returns which may not beat inflation. Moreover, returns from equity funds have outperformed PPF over the long term. This came at a time when PPF rates … [Read more...] about Should you ditch PPF?
I have maintained bank branches remain the worst places to seek financial advice. I have done a post on the same topic a few months back. Read: Why banks are the worst places to seek financial advice? In this post, I will write about an incident when a client walked into branch of a leading private bank to open a PPF (Public Provident Fund) account. If you have visited a … [Read more...] about Please, let me open a PPF account
In one of the previous posts, I had discussed about how clubbing provisions could be attracted if you invested in the name of family members. In this post, let’s look at some of the ways where you could invest in the name of family members and still avoid/reduce the impact of clubbing provisions. Must Read: PFP Primer: Clubbing of Income 1. Invest in instruments that … [Read more...] about 9 ways to Save Income Tax on Investment Income