1 / 7

Investment Options for Fixed Income Source

Here are the best investment options to get a fixed income for your future. Invest here and get the benefit of getting a fixed income source.<br>Visit: https://www.ajmeraxchange.co.in/blogs/investment-options-for-fixed-income-source

Devangthakkar
Download Presentation

Investment Options for Fixed Income Source

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Investment Options for Fixed Income Source

  2. Description Fixed Income refers to the generation of a fixed stream of income basis the investment that is made by a person keeping in mind their investment objective. While equities are lucrative for growth capital, fixed income is considered to be steadier. Depending on investment purpose, there are various fixed income tools which are available in India. Government-backed savings schemes: Government schemes offer lucrative interest rates in an extremely low-interest rate scenario. These schemes include the Senior Citizens Saving Scheme (SCSS), Post office monthly income scheme (POMIS) & Pradhan Mantri Vaya Vandana Yojana Scheme ( PMVVY ). PPF is also a lucrative option as it helps in tax savings as well.

  3. Characteristics These schemes offer interest rates from 6.6 % to 7.4%. Another added advantage of these schemes is the tenure of payouts being monthly /quarterly or on maturity. However, one must keep in mind that interest earned on some of these securities is taxable in nature, but offer higher interest rates as compared to Bank FD or savings account.

  4. Debt Mutual Funds Debt mutual funds are mutual funds that invest in fixed income-generating securities such as treasury bills, commercial papers, and corporate bonds. These come with a pre-decided investment maturity amount. Although these mutual funds yield slightly higher returns depending on the investment grade, they are subject to certain risks such as default risk and liquidity risk. One must also read into the pedigree of the fund manager. Off late, we have witnessed certain accidents happening in the debt mutual fund space.

  5. PSU Bonds PSU bonds are debt instruments issued by Public sector enterprises. These bonds typically tend to offer bond yields on the higher end of the interest rate spectrum. These bonds tend to have a higher maturity period. Some of these bonds are also traded on the recognized stock exchanges. Although liquidity of these bonds could be an issue. Also, these bonds are available over the counter from some brokers who deal in such bonds. While they offer high bond yields, this could also be on account of the poor financial health of the company as a result of which they find it difficult to raise money from the market at prevailing rates.

  6. Corporate Bonds and FD Corporate Bonds and FD’s are a mechanism where an investor is lending their money to a company (not a bank). These companies offer a few percentage points of interest higher than the typical bank FD’s. However, the risk involved with these instruments is higher. One must also not solely rely on the credit rating of the issue before subscribing to such bonds & it is important to consider other factors as well.

  7. Thank You Visit: https://www.ajmeraxchange.co.in/blogs/investment-options-for-fixed-income-source

More Related