Fixed Income was one of the active investment avenues in 2011 and will remain so in 2012 also. The interest rates are at a high and will move downward in the coming months. Read the below comparison as fixed income should definitely form some part of your investment portfolio. The percentage of fixed income securities in your portfolio can depend on your age, risk appetite goal of your investment etc. There are fixed income options which give return in the range of 8% to 12.5%.
We are listing down a comparison of various fixed income securities in India that investors can consider investing:
|Instrument||Bank Term Deposits||Post Office Term Deposits||PO Monthly Income Scheme (MIS)||Personal Provident Fund (PPF)||National Savings Certificate (NSC)||Kisan Vikas Patra (KVP)||Company Fixed Deposit|
|Interest Rate Range||8%-10%||6.5% - 8%||8.5%||8.8%||8.6%/8.9%||Discontinued||8% - 12.5%|
|Interest Payout||Qtly/Hyly/Yrly/On maturity||Quarterly||Monthly||Yearly||Half Yearly||Qtly/Hyly/Yrly/On maturity|
|Tenure Range||15 days - 10 yrs||1-5 yrs||5 yrs||15 yrs||5 /10 yrs||6 mths-3 yrs|
|Min Investment||Rs 100||Rs 200||Rs 1500||Rs 500 every year||Rs 100||Rs 10000|
|Max Investment||No Limit||No Limit||Rs 4.5 / Rs 9 lakh||Rs 70000||No Limit||No Limit|
|Premature Withdrawl||Allowed||Allowed||Allowed||Allowed||Not Allowed||Not Allowed|
|Tax Benefit||80C (> 5 yrs FD)||80C||Not available||80C||80C||Not available|
|Tax on Interest||Taxable||Taxable||Taxable||Tax Free||Taxable||Taxable|
Leave feedback on what your opinion is regarding this option of investment.