Mathematical accuracy and performance in real time are different ballgames altogether. The maths and the returns might look perfect on paper but the discrepancies soon show as some investment performances fail to meet your expectations. Hence, the corpus created is inadequate for the fulfilment of the goal. Saving and investing… Continue reading
Tax savings fixed deposits have a minimum lock in period of five years. Withdrawal before the expiry of the lock in period will attract tax treatment on the principal. Tax rebate for such a scheme is extended only for the principal and not for the interest unless it is reinvested…. Continue reading
Sukanya Samriddhi Scheme (SSS) is an investment option for you only if you have a girl child of ten years or below. The age limit is 11 years only for 2015. The return for the FY2015-2016 is 9.2%. In ELSS good returns can be earned due to exposure to equities… Continue reading
NSC is a scheme launched by the Government of India. It is a fixed income earning instrument and the interest rates are almost at par with other Government tax savings instruments. NSC is compounded half yearly and the interest rates are declared annually. The current rate of interest is 8.5%… Continue reading
NPS is more of a retirement solution than an investment solution. It invests partially in equities but the lock in period is till the retirement age of 60. This may be restrictive for young investors who are aiming for higher returns in a relatively medium period time. If you are… Continue reading
It is a traditional scheme of the Government of India often used by tax payers to save tax up to 1,50,000 INR u/s 80c of the Income Tax Act. The lock in period of the scheme is as long as fifteen years and can be extended in block of five… Continue reading
ULIP has a lock in period of three to five years. ULIP has often been criticized due to lack of transparency along with high costs. The overhead costs such as the premium allocation charge and the policy administration charges in the investment of ULIPs have often been known to eat… Continue reading
The first conflict that you may have in mind is instead of investing in one scheme and putting all eggs in one basket, it is probably better to invest individually in equity schemes and debt schemes. One of the myths concerning balanced funds is regarding the usage of the word… Continue reading
These are a fund that constitutes of investments in equities, debt and occasional investments in short term money market all in a single fund. Balanced funds have a fixed percentage of investment in every asset class. An Equity Oriented Balanced Fund will have minimum 65% of equity and 35% of… Continue reading
Large Cap Funds are those mutual funds, which focus on investing primarily in large blue chip companies. Each of the fund houses have their own definition of deciding which stock falls in which category based on market capitalisation. But generally companies with a market capitalisation of Rs 1000 – 1500… Continue reading