The National Pension Scheme or NPS which was launched on 1 May 2009 was a major move by the government to convert the pension system from a defined benefit scheme to a more flexible defined contribution scheme with a range of investment options for the investors. But even after more than five years since it started, despite the government’s backing and low charges, it is yet to take off as a popular tool to save for retirement. This could be attributed to firstly the difficulties faced in opening the account – in post offices and the specified banks, where many times the employees themselves are not aware of the product and secondly the product limitations.
Over the last couple of months most of us are likely to have heard of the recently launched low cost Pradhan Mantri Schemes, thanks to the huge publicity through advertisements, hoardings and our personal bankers sending us emails on how to avail of these. Though most of these are low premium, low benefit schemes primarily targeted at the lower income group, it is open for all. If one does not need these for himself or herself, he or she can help their domestic helps/workers and businessmen can encourage their employees to subscribe to these. More details as follows-
Pradhan Mantri Jeevan Jyoti Bima Yojana Continue reading →
The Sukanya Samriddhi Scheme was launched in January 2015 by the Indian Prime Minister under the “ Beti Bachao, Beti Padhao” initiative of the Government of India. The objective of this scheme is to financially secure the future of the girl child – who is still considered a liability on parents in many sections of our society.
Accurate estimation of the return on investment is important to an investor. It not only gives him a clear picture of how his investments have fared, but also enables him to compare the returns of fundamentally different investment options available in the market. The EAR and CAGR are two of the most important concepts/calculators, which cover the investments with a fixed rate of return and those which do not grow at a constant rate and fluctuate widely over the holding period.
Effective annual rate (EAR) Continue reading →
We are in the month of March and the mutual fund market is flooded with new fund offers from almost all the leading asset management companies. Most of these are closed ended debt oriented plans with tenure of three years and above.
Three months have passed since the last late of filing individual tax returns, which was 31st of July. Many of us who applied for a tax refund have already got it, and some are still waiting, and a few may have to wait longer or may not get the refund at all. The general tendency is to blame the Income Tax Department – calling it a typical Indian public sector organization, inefficient, slow, lacking professionalism etc. While this may have been somewhat true in the past, it is not the case today, with the new online version of Income tax India introduced a few years ago.
The finance minister increased the maximum investment ceiling in PPF (Public Provident Fund) from Rs 1 Lakh to Rs 1.5 Lakhs per financial year in the last budget. This makes the already popular PPF more attractive. The PPF is one of the very few investment avenues which still enjoys the EEE benefit – the investment is exempt from tax and eligible for tax rebate, the interest is tax free, and the maturity amount too is tax free.