Skip to main content

How to get the best returns from small savings schemes ? - KVP, NSC, MIP

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

THE small savings landscape has changed with the overhaul of the different instruments that are available in the market.

While freeing up interest rates by linking them to the interest rate of securities in the debt market is one of the changes involved, there are several other changes that investors will face when they want to make investments over the coming days.

Understanding these changes is a very important part of the entire investment process because the investor needs to know exactly what is available and how he should be going about completing his investments. Here is a look at relevant changes.

Kisan Vikas Patra (KVP): The Kisan Vikas Patra has been an investment instrument that has been in existence for a long time and was also popular. However, a lot of investments in KVP were being made in cash, and, hence, it came to be regarded as an instrument that was being used for hiding wealth.

This instrument, which offered around 8.41 per cent yields for investors, has now been discontinued from December 1, 2011, therefore, investors will no longer be able to buy any additional KVPs for investment requirements. Now, investors will have to choose between the other alternatives that are available for investment.

National Savings Certificate (NSC): There has been a major change in National Savings Certificates. Up until December 1, these were instruments, which paid 8 per cent yield

that was compounded half-yearly, giving a yield of 8.16 per cent, with a maturity of six years. Now, the features of this instrument have been changed and the difference will be visible on many fronts.

First, the tenure of the investment has come down with the end result that the six-year instrument will no longer be available, but the time has actually been reduced to five years. The new interest rate on the instrument is 8.40 per cent for the five year period and the figure will be 8.7 per cent for the 10-year instrument.

Earlier, there was only a single instrument that was available for investment, but, now, there is a longer term option. Investors now have to make a choice about the time period for which they want to lock in their investment. Investors who do not want any worries on interest rate risks should lock into the longer-period instrument when they expect rates to remain low during the interim period, although, it is very difficult to take a 10year view on interest rates

in such uncertain times.


Monthly Income Plan (MIP): One of the biggest changes will, however, be witnessed in case of the post office Monthly Income Plan. The old plan was discontinued from December 1 and now there is a new plan. Again, this will have multiple implications. In the past, the instrument was operational for six years, but now, this tenure will no longer be valid. New investment tenure will be for five years.

There is another aspect to this investment and this is in the form of a bonus paid at the time of maturity. This was an incentive for the investor to remain invested till the time of maturity because it would enable the investor to get a bonus of 5 per cent. This will no longer be available, so in case, the investor remains invested till the end of five years, there will be no bonus coming in. The only relief is that the interest rate has gone up to 8.2 per cent over the life of the new instrument.

 

 

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

 

Popular posts from this blog

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...
Read more

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
Read more

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now