Benjamin Franklin wrote in 1748 that Time is Money in a note titled “Advice to a Young Tradesman”. This can be used in multiple ways and in this post, I use it to explain an important idea known as the Time Value of Money. Shall try to follow it up with other examples in future posts. Journalist […]
Category: Fixed Income
Why are PPF and Sukanya Samriddhi interest rates still so high?!
The government announced the interest rates for small saving schemes yesterday and surprising or should I say unsurprisingly, the interest rates of many schemes, especially the long-term ones like PPF and Sukanya Samriddhi are still too high! Why is the government not sticking to policy? If you are surprised by the title in spite of […]
PPF Premature Closure Illustration
The government has announced premature closure norms for PPF accounts. This includes a rather harsh retrospective penalty which is illustrated in this post. The order was passed on 18th June 2016. Thanks to Basu(nivesh.com) for pointing this out. When can a PPF account be closed prematurely? In Feb. 2016, a circular said, “Premature closure of […]
The evolution of Public Provident Fund (PPF) Interest Rates
A provided fund for the general public came into being by an act of parliament in “in the nineteenth Year of the Republic of India” (1968) and has since evolved with the Indian economy. In this post, let us consider the way in which the interest rates of the public provident fund (PPF) has changed […]
Public Provident Fund (PPF) Extension Rules Upon Maturity
The extension rules and options available for public provident fund accounts after maturity or after completion of 15 years are discussed. The national savings institute (NSI India) has a wonderful pdf rule booklet with all notifications and clarifications since inception, and this post is entirely based on that. The aim here is to consolidate my […]
Tax-Free Bonds FY 15-16: Do not buy!
Seven public sector enterprises will be issuing tax-free bonds this financial year. Thankfully, the interest rates of these bond will be much lower than the last issue. Thankfully because that would serve as a natural deterrent. If you are young and far away from retirement, invest your money productively instead of buying these bonds. I had […]
The Rate Cut in Perspective
RBI surprised everyone by announcing a 0.25% reduction in repo rate (from 8%) yesterday. The market welcomed this news with a sharp rise. Several self-proclaimed long-term investors welcomed their prospective notional gains as enthusiastically as they despaired at their notional losses when the markets ‘crashed’ a few days ago Here is a perspective of ‘where […]
