Small Savings Small Cut
June 3, 2017
After staying put in the March quarter, the government has finally cut rates on small savings schemes offered by the post office in the April-June 2017 quarter. A rate cut was overdue. G-Sec yields, to which post office schemes rates have been linked , are down sharply over the past year. Even so, the government has been kind. The quantum of the latest rate cut- just 0.1 percentage point accross small savings schemes except post office savings accounts – has been mild. The government going by its formula to fix these rates, had the leeway to wield the knife more forcefully. So, the PPF and NSC will now get 7.9 per cent, while the Sukanya Samriddhi and Senior Citizens Schemes
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EPF Vs NPS
March 26, 2016
Employees’ provident fund Tax exemption on employee’s contribution under Section 80C. No tax on employer’s contribution. Interest earned is not taxed. Withdrawal is not taxed. National Pension System Tax exemption on contributions under Section 80CCD(1). Tax deduction on employers contribution under Section 80CCD(2). Extra tax deduction of up to Rs.50,000 on voluntary contribution under Section 80CCD(18). Options for a subscriber at the time of retirement at 60 years; a) Must use 40 per cent of the corpus to buy an annuity b) Can use the remaining 60 per cent of the corpus to buy an annuity income from a life-insurance company c) Can withdraw 40 percent of the 60 per cent corpus tax-free, and withdraw 20 per cent and pay
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PFC Tax Free Bonds
September 26, 2015
Issue Updates Issue Opens on 05th October, 2015 Allotment : First come First Serve Basis Issue Size : Rs. 700 Crores Allocation: QIB 10%—————-Rs 70 Crores Corporate. 25%—————-Rs 175 Crores HNI— 25% ————– Rs.175 Crores Retail 40% ————– Rs. 280 Crores Interest Rates for Retail Individuals Investing upto Rs. 10 lacs 10 years—- 7.36 p.a 15 years— 7.52% p.a 20 years—- 7.60% p.a For Non Retail ( QIB, Corporate, HNI) 10 years—- 7.11% p.a 15 years— 7.27% p.a 20 years—- 7.35% p.a Rating: AAA Issuance: Demat and Physical mode
NTPC Tax Free Bond
September 23, 2015
Issue Overview Public issue by the Company of tax-free secured redeemable non-convertible Bonds for an amount of Rs. 400 crore with an option to retain oversubscription of up to Rs. 300 crore for issuance of additional bonds aggregating to a total of up to Rs. 700 crore during fiscal 2016. Issue Date : September 23, 2015 – September 30, 2015 Allotment : First Come First Serve Basis Issue Price : Rs. 1000/- per Bond Face Value : Rs. 1000/- per Bond Minimum Application : 5 Bonds (Rs. 5,000/-) (individually or collectively, across all Series of Bonds) and in the multiple of One Bond (Rs. 1,000/-) thereafter Nature of Instrument : Tax-free secured redeemable and non-convertible Listing : BSE & NSE
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Longevity of investments maximises returns
August 26, 2015
Insights from an analysis of mutual fund data by CAMS In general, the returns generated from the markets are a function of the entry timing, longevity of investment and exit timing. Mutual fund data analysed by CAMS points to a strong correlation between the longevity of an investor’s investments and return maximisation in equity funds.. CAMS identified five growth plans of equity category schemes. This comprised two diversified equity schemes, two balanced funds and one ELSS fund which had the highest NAV. The current corpus of investment in the schemes was further classified based on ageing of investment — less than one year, one to three years, three to five years, five to 10 years, 10 to 15 years, more
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