This is the archive of all our articles related to fixed income investment options
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…
Continue reading →On 30th Sep 2022, the RBI increased the rate at which it lends money to commercial banks (the repo rate) from 5.4 % to 5.9%. See RBI repo rate history from June 2000 to the present. A reader asks, “why did the govt. not increase PPF and SSY interest rates?” The REPO rate is at…
Continue reading →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…
Continue reading →In this article, I discuss why the govt can use income tax (IT) slab rates as a primary guide for fixing small savings scheme interest rates to (1) reduce hardships to lower-income groups and senior citizens and (2) avoid cringy embarrassment such as this PPF rate cut reversed but do not reverse your decision to reconsider…
Continue reading →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 Orders issued by oversight shall be withdrawn”.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…
Continue reading →PPF interest rate has been “slashed” from 7.1% to 6.4% for the second quarter of 2021. This has come as a big shock to retail investors who, at the least, expected rates to remain the same. The rate for Sukanya Samridhhi Yojana has also be reduced from 7.6% to 6.9%. Does it still make sense…
Continue reading →Many PPF investors have a habit of investing Rs. 1.5 Lakh between April 1st to April 5th to “maximise” the interest benefits of PPF. Here is what you need to consider before you do this! The discussion also applies if you wish to maximise PPF investments over the course of the financial year. If you…
Continue reading →In this article, I explain why I did not invest the maximum amount eligible into PPF for ten years. The start of another month, and it is time to open my trusted investment tracker Excel. I have been using this for the last ten years to track my investments. This sheet is available here: How…
Continue reading →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…
Continue reading →When we open a PPF account, the maturity date seems far away; However time flies, and before we realise it, it is time to make a decision: should I extend my PPF account for another five years or should I open a new one? The answer always depends on one’s personal circumstances, and extension is…
Continue reading →The PPF interest rate for the current quarter is 7.1% (1st Jan 2021 to March 31st 2021). Many investors are worried and some even accuse the government of lowering rates and causing hardship. We should be aware that the PPF rate is almost 1% higher than what it should be! How is the PPF rate…
Continue reading →Use this free calculator to find out the taxable EPF interest on employee contributions over 2.5 lakhs. This exact calculation is a follow up on this simple illustration: How employee contributions over 2.5 lakhs get taxed like an FD. If you wish to avoid this tax, you can consider alternatives discussed in this article: With PF…
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