For most retired investors, the challenge is not only to invest in such a manner that the tax liability is kept at bay but also to maintain a regular stream of income.
On top of it, with increasing longevity, the other challenge is not to outlive the retirement funds, but put the retirement corpus to optimal use to sustain funds till one lives.
While the Senior Citizens’ Saving Scheme (SCSS) remains the first choice of several retirees, the post office monthly income scheme (POMIS) and the LIC Pradhan Mantri Vaya Vandana Yojana (PMVVY) also holds equal importance. At the same time, with companies raising funds through non-convertible debentures (NCD) by offering highly competitive returns, most investors consider them to be an attractive investment option.
NCDs are the kind of bonds that carry a fixed coupon rate of interest which is typically 3 to 4 percent higher than bank deposits over tenure of 3-5-10 years. Not all NCDs may offer monthly, quarterly or half yearly payment of interest as most of them offer annual or cumulative payments. Although the NCDs have a lock in period, they can be traded in the secondary market to provide liquidity. In reality, the liquidity is low and not many bonds get traded.
This story is from the November 2018 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 2018 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
ASK THE EXPERT
Ques. One of my friends told me that your company provides detailed Retirement plans. I want to know what is the procedure to get my Retirement plan. I will be retiring in March 2025. R.P Gupta, Noida
How to Naturally Reverse Fatty Liver Disease
The liver, located on the upper-right side of the abdomen, is the body’s largest internal organ and plays a critical role in detoxifying the blood and processing nutrients.
Banking sector which has underperformed in the last two years, now offers a favorable risk-reward profile
Do you think the market is overpriced? Is yes, should investors refrain from investing in index schemes at the current valuation?
India will continue to enjoy benefits of a close US relationship and trade will continue to grow
Q1. The US elections are said to be one of the closest till date, what impact will the election of a Republican / Democratic party have on the US economy and how is that going to affect India in the short as well as the long term?
Understanding Momentum Funds
Momentum funds are a type of investment fund that focuses on companies experiencing positive momentum in factors such as earnings, revenue, and stock price movement.
Risks and opportunities associated with Small Caps
Small-caps are a stock-picker’s paradise.
How to navigate your portfolio through bull market a
Indian equities have been in a bull run for the past four years.
Choosing mutual fund schemes depending on your age to achieve life goals
The choice of mutual fund (MF) scheme might be influenced by one’s risk profile or age.
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.
Be Kind To Your Kidneys
The kidney is a vital organ in our body which is four inches long and two and a half inches in width.
