Invest in Bonds If you feel uncomfortable in investing in mutual funds and direct equity market investments, then you can try investing in bonds.
Investing in bonds can be one of the best investment options since there are many good bonds which actually provide a high rate of return on investments. There are bonds that are under the regulation of government, for example, a bond for 10 years which is currently giving a rate of interest of 7. Bank fixed deposit FD Fixed Deposits are a very popular fixed-income-providing investment vehicle, as they offer fixed returns over the investment tenure.
The returns are payable monthly, quarterly or annually, as per the bank guidelines. Depending on the bank, FDs offer cumulative and non-cumulative options.
In a non-cumulative option, the interest is paid as per underwriting, whereas in the cumulative option, the interest is reinvested within the FD and is then payable at maturity.
Investments in Fixed Deposits can be made online or by visiting any branch of the bank of your choice. The interest rates are attractive, as they range from about 6. FDs offer a range of tenures minimum – 7 days, maximum – 10 years and the investors can choose what suits their needs best. They offer a whopping 8. These are available across India through post offices and certified banks. The maximum amount one can invest in this scheme is Rs. While the tenure of the scheme is 5 years, it can also be extended for another 3 years.
The bonds are issued at a price of Rs.
The interest can be availed as regular income in the non-cumulative option, whereas the cumulative option includes the interest reinvested.
The fund invests in equity, bonds, government securities, and investment alternatives as per the will of the investor. It offers two choices: Under the former, the funds get automatically invested in various assets, whereas the latter allows the investor to make this choice. The lock-in period for any investor depends on their age, as the scheme only matures when the investor turns The accumulated interest is tax-free in this scheme.
Sukanya Samriddhi Yojana The Sukanya Samriddhi Yojana was introduced to mainly promote the welfare of the girl child, which is why the account can only be opened by a legal guardian of the girl child.