Sunday, November 25, 2012

Fixed Income Investment Options - Comparison

5 comments
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:


InstrumentBank Term DepositsPost Office Term DepositsPO Monthly Income Scheme (MIS)Personal Provident Fund (PPF)National Savings Certificate (NSC)Kisan Vikas Patra (KVP)Company Fixed Deposit
Interest Rate Range8%-10%6.5% - 8%8.5%8.8%8.6%/8.9%Discontinued  8% - 12.5%
Interest PayoutQtly/Hyly/Yrly/On maturityQuarterlyMonthlyYearlyHalf Yearly
Qtly/Hyly/Yrly/On maturity
Tenure Range15 days - 10 yrs1-5 yrs5 yrs15 yrs5 /10 yrs6 mths-3 yrs
Min InvestmentRs 100Rs 200Rs 1500Rs 500 every yearRs 100Rs 10000
Max InvestmentNo LimitNo LimitRs 4.5 / Rs 9 lakhRs 70000No LimitNo Limit
Premature WithdrawlAllowedAllowedAllowedAllowedNot Allowed
Not Allowed
Tax Benefit80C (> 5 yrs FD)80CNot available80C80CNot available
Tax on InterestTaxableTaxableTaxableTax FreeTaxableTaxable

Leave feedback on what your opinion is regarding this option of investment.
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5 comments:

  1. This is a nice comparison. Company fixed deposits are definately worth looking into - especially for some of the good companies. That way you get good return plus investment is secure. Never say never but fairly secure - especially when compared to equities and mutual funds.

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  2. Good comparison ! Company deposits & PPF seems to be the best option !!

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  3. can u tell me wat % of money in portfolio can go to company fixed deposit to regular fixed deposit ..

    and how safe is company fixed deposit .. citing there r few complaints of non repayment issues ??? which is a safe company deposit in the pack ?

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  4. Unni: There is no one size that fits all so the percentage of money that should be put in company fixed deposit vs regular fixed deposit should be decided by you based on the risk that you perceive you should take. One can consider risk and average return of the entire portfolio. Checkout this article which was posted couple of years back on due diligence required for company fixed deposits: http://www.myfamilyinvestment.com/2010/06/company-fixed-deposits-due-diligence.html

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  5. Also, if you want to see the comparison of various company fixed deposits, checkout this article: http://www.myfamilyinvestment.com/2010/12/latest-company-fixed-deposits-as-of.html

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