Skip to main content

Featured Post

How to Pick Mutual Funds That Beat the Market

  Smart Strategies for Investing in Mutual Funds: A Guide to Maximising Your Returns One of the most well-liked investing options for people looking for expert management and diversification without having to choose individual equities is a mutual fund. One of the easiest ways for people to accumulate wealth over time is through mutual fund investments. Mutual funds combine the capital of numerous individuals to invest in a diverse portfolio of stocks, bonds, and other securities, in contrast to direct stock market investing, which necessitates considerable time, study, and risk tolerance. Mutual funds are a well-liked option for both new and experienced investors due to their expert management and diversification. But merely investing in a mutual fund and crossing your fingers seldom yields the best outcomes. A comprehensive approach that matches the appropriate fund selection and management strategies with your financial objectives, risk tolerance, and investment timeline is nece...
Post a Comment

These five income options other than FD are good for senior citizens

 

These five income options other than FD are good for senior citizens



Bank fixed deposits are the preferred investment option for many people. However, senior citizens mostly depend on interest income for their expenses. However, recently a difficult phase is going on as the interest rate on fixed deposits has come down drastically. The economy is unlikely to recover soon from Corona, so seniors need to rethink their portfolios. In this news, we will tell you about four investment options where senior citizens can get high returns on investment given the current situation.

 

Senior Citizen Savings Scheme (SCSS): A maximum of Rs 15 lakhs can be invested in SCSS in multiples of Rs 1,000. The interest in this scheme is payable every quarter, so it can be used as regular income. The SCSS account matures in five years, after which one can extend it for a block of three years. Despite the large reduction in the interest rates of small savings schemes, SCSS was paying 7.45% for the April-June quarter, which is much higher than any other fixed-return scheme available to senior citizens.

 

Pradhan Mantri Vay Vandana Yojana or PMVVY Scheme: This pension scheme has a policy term of 10 years and the pensioner can opt for pension monthly, quarterly, half-yearly or annually. Now the interest in Pradhan Mantri Vaya Vandana Yojana (PMVVY) is higher than the Fixed Deposit Scheme proposed by SBI. This scheme will give 7.40% per annum in FY 2021. Any person who is 60 years or above 60 years of age can avail the Pradhan Mantri Vyavandana Yojana (PMVVY) scheme. The scheme also offers a death benefit. Under this, the purchase price is refunded to the nominee. Earlier this policy was open for a very short period. Then its duration was extended to 31 March 2020. Now it has been increased to 31 March 2023 for another three years.

 

RBI Savings Bonds: These floating-rate bonds are issued by the RBI in electronic form only at 7.15% per annum (0.35% above the current NSC rate). Its rates are reset every six months. Individual (including joint holdings) and Hindu Undivided Family (HUF) are eligible to invest in it. NRIs cannot invest in these bonds. There is no maximum investment limit in bonds. The minimum investment starts at Rs 1,000 and is in multiples of Rs 1,000.

 

Post Office Monthly Income Scheme: POMIS is a good option for senior citizens seeking a steady income. Currently, the scheme offers a 6.60% interest. While the minimum required investment in this is Rs 1,000, the maximum is Rs 4.5 lakh for a single account and Rs 9 lakh for a joint account. To open a POMIS account, you have to open a savings account in the same post office branch. Interest earned in POMIS is taxable.

 

Debt Funds: Since these are mutual funds that focus on fixed-income investments, they are considered more secure than other funds. Long-term debt funds can offer you higher value based on market performance. They give a high rank in return on investment and provide you with returns that can increase up to 15% per year. They also provide high liquidity, although you may have to pay a fee for withdrawals before the minimum investment period.


Labels:

Comments

Post a Comment

Popular posts from this blog

Know All About Sovereign Gold Bond Scheme (SGB)

    The first time Sovereign Gold Bond Scheme was first introduced by the Government of India in the Union Budget of 2015-16. It was introduced by the Government of India to reduce the demand for the physical gold form and a part of this physical gold is bought every year in the form of gold bands for the purpose of invest in SGB.   Latest on Sovereign Gold Bond Scheme    A tenth tranche of the buy SGB Series – The Sovereign Gold Bond Scheme 2021-22 - Series X in which the Reserve Bank of India (RBI) sell gold bonds linked to the market price of gold on behalf of the government made available for investment will be open for buy SGB for the period from February 28th to March 4th.   What is Sovereign Gold Bond?   The Sovereign Gold Bond is an initiative taken by the Government of India to reduce the demand for physical gold as per the Reserve Bank of India as the increasing import of gold is affecting the growth and investment of India. Large quantities ...
Post a Comment
Read more

Know that senior citizens get many special concessions in income tax

  People above 60 years of age, i.e., senior citizens, not only get the benefit of income tax exemption but also receive special relief from income tax on investments and returns. Elderly citizens do not have to pay any income tax on income up to Rs 3 lakh.   Exemption in tax limit under 80C limit: The tax exemption limit for old citizens in a financial year is Rs 3 lakh, while a common man gets tax exemption only up to Rs 2.5 lakh. For very senior citizens who are above 80 years of age, it is Rs 5 lakh. That is, if the annual income of a senior citizen is up to Rs 3 lakh and TDS has not been deducted, then he need not file an income tax return. Similarly, very senior citizens need not file income tax returns if they do not have an annual income up to Rs 5 lakh.   If the age is more than 75 years then no return is required: Those above 75 years of age are not required to file tax returns. There is no any need to file ITR for people above 75 years of age who are ...
Post a Comment
Read more

SEBI introduces a new category of funds flexi-cap in mutual funds

  Securities and Exchange Board of India (SEBI) has introduced a new fund category, Flexi-cap, in mutual funds. According to the circular, mutual funds in this category need to invest at least 65 per cent of the portfolio in equities. However, there is no restriction in terms of allocation to market capitalization range and they can dynamically shift across large-cap, mid-cap and small-cap. So, effectively, the new category of the fund in a mutual fund is how SEBI used to define the multi-cap category until it changed the category's mandate.   On September 11, 2020, SEBI issued a circular informing about the change in the mandate of the multi-cap fund's category. According to the new guidelines of SEBI, multi-cap funds need to allocate 25 per cent of the portfolio to each-large-cap, mid-cap and small-cap stocks, increasing the minimum equity allocation to 75 per cent. AMC has been given time until January 2021 to make the required changes in the portfolios of their multi-c...
Post a Comment
Read more