Small Savings Schemes are more of social welfare schemes. Recently govt mooted idea to cut interest rate of small savings schemes. Any revision in the interest rates of such schemes faces opposition from various quarters. The worst part is that this protest is without any logic and reasoning. As a citizen of India, we should understand the mathematics behind the decision. After thorough understanding, we can debate and discuss the merits or shortcomings. Also, we should review each and every decision 360 degrees. Any myopic view of the same will give biased approach. This post is not a ... Read More
Debt Mutual Funds – 7 Hidden Risks
Till few years back i was quite bullish on Debt Mutual Funds. The Great Crash of Debt Mutual Funds in July 2013 shattered my faith in Debt Mutual Funds. The most impacted funds were Liquid Mutual Funds that are considered to be safest among all. Liquid funds invest in money market instruments. The lower maturity period makes them best investment option for short term. I regained my faith in Debt Mutual Funds and invested in Long Term Debt Mutual Funds. The last one year is also not good, especially for long-term/gilt debt mutual funds. We will discuss this later in detail. The 1 month return ... Read More
Unbreakable Bank Fixed Deposit
Unbreakable Bank Fixed Deposit as the name suggests cannot be withdrawn prematurely. In other words, people cannot break their bank fixed deposit before the end of maturity period. Reserve Bank of India has allowed the banks to offer Unbreakable Bank Fixed Deposit at higher interest rate. It will provide an option to earn higher interest to people who don't need funds for certain period. Unbreakable Bank Fixed Deposit is not a new concept. It is being borrowed from more mature markets. In India, Fixed Deposit means fixed interest rate but actually it is term deposit i.e. deposit for fixed term ... Read More