We all love income investing strategies that can generate consistent income month on month. For this we help you to invest in following investment options.
Fixed Deposit
Fixed Deposits are one of the oldest and most common methods of investing. When it comes to assured returns, choosing the right type of savings scheme makes all the difference. Fixed Deposits let you make the most of value-added benefits as you create wealth at low risk.
Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits.
Types of Companies offering Fixed Deposits
- Financial Institutions
- Non-Banking Finance Companies (NBFCs).
- Manufacturing Companies
- Housing Finance Companies
- Government Companies
Features and Benefits
Company Fixed Deposits offer comparatively higher returns than banks. We help to choose the best options from a wide range as per your convenience. Also You can choose how frequently you want to receive your interest payments:
Lump sum with Maturity
» Yearly
» Half-yearly
» Quarterly
» Monthly
- Company Fixed Deposits are non-transferable that means there is no fear of FD receipt being stolen. In case it falls into wrong hands, it cannot be misused.
- Premature encashment of deposit is available any time subject to payment of prescribed penalty.
- Diversify Risk- The deposits should be spread over a large number of companies engaged in different industries. This way, you'll be able to diversify your risk among various industries/companies.
- Wide Choices- Many companies operating in the Company Deposit market. This will help you decide whether to renew or reshuffle the deposit.
- Attractive rates as applicable from time to time.
GOI Bonds
An investment avenue in which an investor loans money to the government or corporate, that borrows funds for a defined period of time at a fixed interest rate. Bond market has not attracted retail investors to it.
Advantage: the rate of interest is high.
Disadvantage: no security, interest earned is taxable. So before investing in bonds do check the credibility of the company offering the bond and past record of the company.
RBI Bonds
Bonds as issued by the Reserve Bank of India (RBI). The rate of interest offered is 7.5 per cent, payable half yearly with cumulative and non-cumulative option available. Tenure is six years.
Advantages: safety with guaranteed return.
Disadvantage: interest is taxable.
Government securities
Retail investors have not tapped this investment avenue as much as others. It is good for investors looking for reasonable returns with no risk of default as the securities the Government offers these securities. These securities can be held in a Demat format. The market is limited so liquidity can be a problem. Investors need to have a thorough knowledge of this investment format to invest in them.
Well, then if you are the one who prefer the comforts of safety to the greed of high returns all the above debt instruments are yours to invest in.
