Investment Planning Tips

Company deposits , also popularly known as company fixed deposits (CFDs), are fast getting the investor attention they deserve, especially in the past decade. This is largely on the basis of higher returns compared with other popular debt options such as bank FDs along with many other advantages. These include high-interest rates of about 8.25%, flexible deposit tenures, and high credit ratings such as ‘AAA’. These factors are increasingly driving investors towards corporate deposits . Let’s look at the 6 simple facts that you must know well before investing in CFDs: What are the promised annual returns? One of the most important considerations, before you invest in a corporate deposit , is checking the promised returns. In case the company floating the CFD promises annual returns of up to 8.25% or more, then that CFD becomes an effective investment option for you since you will be getting returns approximately 0.25% higher than bank FDs. What is the flexibility in ter...

National Pension System (NPS) is a pension scheme that was commenced by the government of India in January 2004. Earlier, it was for new government recruits, but today, it’s open to all types of investors. For the central government employees, NPS is mandatory, which is also the case for certain state government employees who joined on or after January 2004. May 2009 onwards, the government of India opened NPS to all investors. The main objective behind this was to help build investment discipline and culture among Indians to ensure that they have a secure retired life. An NPS account can be opened by any Indian resident who falls in the age group of 18-60 years. The best part is that investors can open an account for the National Pension Scheme online . Under the NPS, you can claim up to a maximum of Rs.1.5 lakhs of the amounts invested for tax deductions under your overall permissible yearly limit under section 80C. That said, the biggest difference NPS brings is the additiona...