How are deposits, bonds and debt funds taxed?
Taxes
Pavithra Jaivant

How are deposits, bonds and debt funds taxed?

Deposits, bonds and debt funds are great ways to diversify one’s portfolio. But the taxation on these instruments can decide whether an option is attractive or unattractive on a post-tax basis. Taxation, though varies across instruments and can be quite complex. The fact that not all debt instruments are taxed in the same way compounds the decision making dilemma on which option to choose. This write-up will break down the taxation aspect of popular debt instruments for resident individuals.

Read More
Prime Review: TN Power Finance and Infrastructure Fixed Deposit
Bonds & Deposits
Aarati Krishnan

Prime Review: TN Power Finance and Infrastructure Fixed Deposit

When interest rates on bank deposits hit rock-bottom in the last few years, the fixed deposit (FD) programme from Tamil Nadu Power Finance and Infrastructure Corporation (TNPFIC) turned quite a hit. This NBFC owned by the Tamil Nadu Government offers high interest rates of 7-8% on FDs and has a friendly online interface, making it very popular with fixed income seekers and seniors. We have received a number of queries from many of you, about this deposit.  

Premium article available only to subscribers.

Premium article available only to subscribers.

Read More
6 ways to identify deposit scams
Bonds & Deposits
Aarati Krishnan

6 ways to identify deposit scams

Some folks still have a fatal fascination for ‘better-than-FD’ returns advertised by unregulated entities – whether it is cryptocurrency exchanges offering interest rates of 12-14% on staking one’s crypto holdings, or peer-to-peer lending platforms promising you a 14% return from becoming part of a lending club. Informal entities ranging from unregistered chit funds run to the street corner jeweller tempt you to ‘deposit’ money with them promising high returns. 

Read More
Higher rates offer a window of opportunity for NRIs
Bonds & Deposits
Pavithra Jaivant

Higher rates offer a window of opportunity for NRIs

If you are an NRI, the chances are that you usually keep an eye out for places to park your surplus earnings in India that are safe, will protect you from exchange rate changes and fetch a respectable return. You probably already have NRE deposits and FCNR(B) deposits, the bank FD equivalents for NRIs. But did you know that there have been recent regulatory relaxations by RBI that give you a window of opportunity to lock into higher rates on these tried and tested savings tools? Here is a closer look.

Premium article available only to subscribers.

Read More
All your debt fund doubts, answered
Commentary
Vidya Bala

All your debt fund doubts, answered

It is true that debt funds have been a washout in the past 3 years. For an investment of 1-2 years, FDs would have marginally (although not significantly enough) returned higher than liquid and ultra short duration funds.

Premium article available only to subscribers.

Read More
Time to lock into high yields and how
Bonds & Deposits
Aarati Krishnan

Prime Strategy: Time to lock into high yields and how

Eighteen months ago, it would have been difficult to imagine that there would be a time when debt investors in India would be spoilt for choice. But the sharp rise in market interest rates in India in the past year or so, has led to this happy situation. Between December 2020 and now, yields on …

Prime Strategy: Time to lock into high yields and how Read More »

Premium article available only to subscribers.

Read More
Three use cases where g-secs score
Bonds & Deposits
Aarati Krishnan

Three use cases where g-secs score

As a part of PrimeInvestor’s bond recommendations, we’ve been highlighting attractive investment opportunities in government securities (g-secs) in recent months. We actively track primary auctions of government bonds on the RBI Retail Direct platform to give you these calls. (Read this article on how to buy G-Secs)

Premium article available only to subscribers.

Read More
SBI perpetual bonds
Bonds & Deposits
Aarati Krishnan

Private bond recommendation: SBI perpetual bonds series 2019-20

Market yields on government bonds have been rising quite sharply in recent months, with short-term yields rising to narrow the gap with long-term yields. However, for investors with surpluses to invest for 2-3 years, the options are still somewhat limited. 

Premium article available only to subscribers.

Read More
An income option for under 5-year time frame
Bonds & Deposits
PrimeInvestor Research Team

An income option for under 5-year time frame

When bond yields started their upward move this year, we started giving calls on G-Secs and SDLs auctioned on the RBI Retail Direct portal. We have one more such call today for those looking for regular income flow for the next 4.5 years.  

Premium article available only to subscribers.

Read More
2 safe options to earn 7.4%
Bonds & Deposits
PrimeInvestor Research Team

2 safe options to earn 7.4%

India’s market interest rates have been rising very swiftly after the recent mid-cycle rate hike by the RBI.  In our earlier analysis we had highlighted that bonds issued by the Central and State governments should now be your first choice as and when primary auctions crop up, as they offer the best combination of low risks with high yields currently. 

Premium article available only to subscribers.

Read More
2 G-Sec bond options to invest right now
Bonds & Deposits
PrimeInvestor Research Team

2 G-Sec bond options to invest right now

About 10 days ago, we alerted you about the upcoming opportunities you will have in the bond market as we move up the rate cycle. Today, we are recommending 2 government securities (G-secs) that are out as auction in the RBI Retail Direct portal. You might want to check if your brokerage has the option to buy these. 

Premium article available only to subscribers.

Read More
How to ride the rate upcycle
Bonds & Deposits
Aarati Krishnan

How to ride the interest rate upcycle

Indian debt investors have been handed a raw deal in the last three years. Though inflation has been rising and market interest rates edging up, the Reserve Bank of India (RBI) and the Monetary Policy Committee (MPC) were doing their level-best to keep a lid on interest rates, to protect borrowers in a Covid-hit economy. 

Premium article available only to subscribers.

Read More
Login to your account
OR