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Abundant Alternatives Available

Banks slashing Interest Rates, GOI Bonds which was giving highest returns 7.75% among govt. backed schemes closed down, Small Savings rates slashed last month, Debt funds has its own problems, Equity markets down and dusted, RE rental yield lesser than Savings rate, Gold has already risen by 40% in the last one year, not sure whether the rally continue here?

Any other options to invest at the current juncture? Here are some of the famous Debt Products you can look for investment.

1. Fixed Deposits from AAA rated NBFCs, these are very attractive currently and very soon they will also reduce the rates. Restrict only with good companies even if its AAA rated. Some of the deposits FundWallet recommends are HDFC limited, Mahindra Finance & Bajaj Finance deposits.

  2. Senior Citizen Savings Schemes which offers 7.4%  with 80C benefit and lock-in of just 5 years and maximum               investment limit of 15 lakhs.

3. Public Provident Fund– one of the best scheme to build secured, tax free long term Debt portfolio.

4. Pradhan Mantri Vaya Vandana Yojana – Its a Pension Plan with interest rate of 7.4% and available only for Senior Citizens.

5. Debt Mutual Funds- Though Debt funds had a nasty blow, but it was restricted within few schemes of selective Mutual Funds. There are few strong and quality schemes available for you to explore. Debt funds invested for more than 3 yeas can benefit from Indexation. These funds come with great liquidity.

Apart from the above, there are other selective options like Sukanya Samriddhi Scheme for someone who has Girl Child, scheme offers interest rate of 7.6%. Voluntary Provident Fund, though it fetches interest rate of 8.6% as per the last financial year,but this has a quite long maturity time and there is upper limit for investment. Tax Free bonds which are traded in the secondary market, though very safe investment but the yield is quite low.

These are options if you want Safe and Predictable returns.

Happy Investing!

R♥Vi

Disclaimer: The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. Views expressed cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice.