FIXED INCOME INVESTMENT

A regular source of risk-free fix income instrument. There are various options of investments in the form of Bank FD (private / PSU), Corporate FD (Various Listed Private companies).
Investor can choose tenure as per requirement and comes with various interest payment option like monthly, quarterly or annual pay-out. Senior citizens can avail marginal higher rate of interest.

A capital raising issuance by private companies, government entities or financial institutions. Bond holders get interest payment at regular intervals and capital invested at the end of tenure. Bonds are highly liquid assets traded on exchanges. In case of company defaults, bond holders are high in order of receivables from assets. It is considered low risk investments.

Non-convertible debentures are issued by public limited companies for their capital requirement. They are either secured or unsecured in nature and offer comparatively higher rate of interest. NCD are liquid in nature and traded on exchanges. In case of company defaults, NCD are low in order of receivables from assets. Higher corporate ratings of issuer can eliminate investment risk. It is considered medium risk investments.

Putting away a portion of your income in a chosen pension fund to accrue over a long period to secure you and your family’s financial future after retiring from regular employment can take care of most contingencies (like a medical emergency or children’s wedding). Relying solely on savings to get through your golden years is not recommended as savings get used up.

Subscription to government schemes like PPF, Sukanya Samriddhi Yojana, Kisan Vikas Patra etc. are extremely safe and long-term fixed investment instruments. These instruments are 100% backed by government and offers low rate of interest. There are certain caps of investment limits in few instruments.