Interest rate of PPF, NSC, KVP, SCSS and Sukanya Samriddhi Scheme for 2015-16

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• Hi Basavaraj,

  I wish to invest 100,000.For 10 years which one will be beneficial ? Kishan Bikash Patra or NSC

  • JD-In my view BOTH I consider them as debt products. Hence, you must have around 40% into such products. Rest 60% in equity mutual funds.

• Dear Basavaraj,

  Is a KVP better option than a FD. I would like to invest 1L for 10years in KVP (heard the amount doubles in 110months)

  Are the taxes higher in FD or KVP ?

  • Irshad-Tax treatment is same.

• Hi Basavaraj,

  How do I apply for Govt Bonds: Infrastructure Bonds, Bonds Market, Capital Gains Bonds ...which are NON-taxable.

  Regards

  • Irshad-There are brokers. You can invest them while they are in offer. Otherwise, you can buy the old offers in secondary market too.

• Dear Basavaraj,

  I am interested in taking NSC(5years) + Kisan Vikas Patra (10years) from Post office. Could you inform me whether the interest amount accrued after the term would be taxed ? Are these tax free instruments ?

  Thanks

  • Irshad-Both are taxable at maturity.

    • Thanks a lot for the quick feedback. I just checked with the Post Master - Head at 2 or 3 branches (+I checked on internet). Interest from NSC is non-taxable.

      • Irshad-Only GOD can protect them who take advice from such Post Masters. Refer this link of Post Office. They mentioned that there will not be any TDS. But they not mentioned it is tax-free.

        • We should take GOD that there are good Samaritans like you !!!

        • Irshad-Pleasure :)

• Hello Sir,
  I have read your post and it is very helpful in my financial planning.I have a question .thanks in advance ::
  I am a merried soft engg and have currently 7,20k package.I have already deposit 50k in my PPF .I can show these 50k in 80c.I have 1lac more to invest.and my short term goal is getting atleast 1.5 lac after 4 years.also i am planning to buy a flat whose emi will cost me around 15 to 20k.so i think that cover my tax redemption.now i am confused for investing these 1lacs.should i go for some gold scheme,or some SIP plan or something else?also i am thinking of investing some small amount in nps but not sure much about that.

  • Tushar-First understand your goal. Then based on that chose a product.

• Hi Basu,

  I have a doubt about the Sukanya scheme. Is it 21 years from the date of opening or 21 years/the girl's marriage date whichever is earlier? So, if an account is opened at the 10th year of the girl, she can't with draw it until 21 years, so she will 31 years old and what is the use, I wonder. Please clarify. Thanks.

  • Teja-Term is 21 years. However, once the girl's marriage account ceases itself. If she not marry during this 21 years, then the account ceases at 21 years itself. In your example, she can withdraw at any point of time during her marriage. Otherwise, she can continue the account up to her 31 years of age.

    • Many many thanks Basu. I'm clear now.

• Dear Basavraj sir I am 32 year old. I want to to know what should be my retirement corpus after 30 years. I have read your blog and came to know that I have to invest in mutual fund, PPF / NPS,. Now my annual income is 1000000. So how much I should invest in mutual funds and how much in PPF/NPS to enjoy good returns after age of 60. I have term plan, health ,accidental insurrance, professional indemnity insurrance.

  • Ravi-your retirement corpus depends on your spending habits but not how much you are earning NOW.

    • Sir I spend approximately 30000 per month now

• Hi,

  I already have a term plan for myself and an LIC policy for my wife.
  I am already investing in an SIP (Axis LTE) as INR 3000 pm.

  Can you let me know some more investment avenues where I can park INR 8000 pm?
  This investment should help me in saving tax also.

  • Prakash-First identify your goals, then an asset class. Finally look for a tax efficient product among them. Without knowing much about all these, how can I guide you?

    • Goals - to buy a house and for kids and my retirement.

      • Prakash-Now you mentioned goals, what about timeframe? Whether basic things like life, health and accidental insurance and emergency funds are properly maintained? If not, then first priority should be towards them.

        • I am 29 years old.

          Time frame would be 7 years for buying a house and kids in another 2 years time.
          Already have a policies in places for life, health and accidental for my wife and myself.
          Best of my knowledge I have also maintained Emergency funds.
          However, can u tell me how much should be set aside for emergency fund?

        • Prakash-Your emergency fund must be at least 6-12 months of your household expenses.

• Hi, I have a girl child 1.5 years. I Want to start investing monthly for her education. My goal is to get 300000 in 15 years. Please suggest me good investment scheme, amount to deposit each month. Also i'm investing monthly 2000 in Axis LT Equity fund, it is not performing well recently, is it good to proceed? Please suggest your opinion and help me in this regard.

  • Viban-Continue Axis Fund. Along with that start investing in PPF. Invest equity:debt in ratio of 70:30. For equity use Axis (existing fund), one large cap fund like Franklin India Bluechip Fund and one small adn mid cap fund like HDFC Midcap Opp Fund. For debt 30%, use PPF.

• Isn't NSC 10 year discontinued?

  • EU-Yes it is discontinued.