Can I use P2P lending as a fixed income investment in my portfolio?

A reader wants to know if he can use P2P lending as a fixed-income instrument in his portfolio. Many portals that facilitate P2P lending flash double-digit returns with slogans like “better return that FDs”. But are they worth your time and money? P2P lending, or peer-to-peer lending, is a method of borrowing and lending money…

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Is there a place for high-interest rate fixed income products in a portfolio?

It is quite easy to see extreme reactions to many aspects of personal money management. Yield-chasing or seeking to invest in high-interest rate fixed income products is no different. Many investors vehemently believe that there is no place for risk in a portfolio. “We have enough risk from equity, so why take on more risk…

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EPF rate cut is a wake-up call! The “It’s still better than the rest” argument will not wash!

The reduction in the EPF interest rate from 8.5% to 8.1% for FY 2021-2022 is a wake-up call for the retail investor. Particularly the young earner. The “EPF rate is still higher than other instruments” argument is of little use for most investors. As discussed several times before, the fiscal prudence of EPFO is far…

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PPF rate cut reversed but do not reverse your decision to reconsider it!

The finance minister in a tweet announced, “interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn”.  Inspite of this readers should reconsider its place in their…

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Are you aware of this risk in guaranteed return products?

We discuss the main risk associated with guaranteed return products that buyers must factor in before deciding to buy. This may seem obvious to regular readers, but even in 2021, there are scores of people who cannot appreciate these products’ main pitfall. It is quite common for insurance agents to present product illustrations to potential…

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ICICI Pru Guaranteed Pension Plan Review: What you need to know

ICICI Prudential Insurance has introduced a Single-Premium Annuity Plan called ICICI Pru Guaranteed Pension Plan. In this review, let us analyse its features, merits and demerits and evaluate if the plan has any value to offer. What Is It? ICICI Pru Guaranteed Pension Plan is a “Non-linked Non-participating Individual Annuity Plan” About the author: Ragesh G…

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