Professional Documents
Culture Documents
Life Beyond Fixed Deposits
Life Beyond Fixed Deposits
Ashwani Gupta
Gupta Institute of Financial Training LLP
Ahmedabad
Updated July 25, 2020
Version 2.0
OUTLINE OF THE DISCUSSION
• Basics
• Government Schemes
• Negative List
• Documentation
BANK FD
• Liquidity
• Convenience
• TDS is Tedious
• PPF
• LIC PMVVY
• Senior Citizen Scheme
• POMIS
• RBI Bonds
• NSC and KVP
• Tax Free Bonds
PPF
• Tenure 7 years
• No Limit on investment
• Taxable
TAX FREE BONDS
• Demat compulsory
NSC
• No limit on investment amount
• Interest rate variable but lock in
• Current 6.80% compounded annually
• Rs 1,000 1,389
• Tenure 5 years
• Pass Book Mode
• Benefit u/s 80C
• Interest is Taxable
KVP
• No limit on investment
• Listed on Exchange
• Demat account Required
• Low risk (AAA PSU Portfolio)
• Indexation Benefits on Maturity
• Yield approx. 5.75% post tax
• Daily Price Movement may not suit all
STP AND SWP TAX EFFICIENCY