Smart ways to compound your debt investment returns
If selected properly, fixed income investments can be more predictable compounders of wealth
Money managers and financial advisors, when pitching financial products to you, love to cite Einstein on compounding being the eighth wonder of the world. Then, they do their best to convince you that if you want to benefit from compounding, you should be maxing out your equity investments. But if you give it a bit of thought, debt investments often turn out to be more predictable compounders of wealth for Indian investors, than equities.
Steadier compounding
In equities, your returns come in fits and starts. You may make a 30 per cent return one year, lose 15 per cent of it in the second year and gain back 10 per cent in the third year. But such zig-zag returns from stock prices don’t really make for steady compounding of your money.
Priyanka Gandhi hinted that Nirmala Sitharaman s U-turn was influenced by the ongoing polls.
New Delhi:
Congress leader Priyanka Gandhi today asked Finance Minister Nirmala Sitharaman if the Centre s overnight flip-flop on small savings scheme interest rates was a case of oversight as claimed or one of election-driven hindsight . She tweeted shortly after the latter posted on the microblogging site early this morning withdrawing the steep cuts in rates announced yesterday, the last day of Financial Year 2020-2021. The Trinamool Congress, battling the BJP furiously in West Bengal, also mocked the Union government.
Yesterday s announcement by the Finance Ministry saw interest rates on schemes such as the National Savings Certificates and Public Provident Fund (PPF) being cut of up to 1.1 per cent for the first quarter of 2021-22 in a massive blow to middle-class depositors. With this, the PPF rates stood at a four-decade low.
In less than 24 hours, Centre withdraws order cutting interest rates on small savings schemes
In less than 24 hours, Centre withdraws order cutting interest rates on small savings schemes
On Wednesday, the Finance Ministry had announced a sharp cut in interest rates for small savings schemes for the first quarter of the financial year 2021-22. This order has now been withdrawn.
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UPDATED: April 1, 2021 19:32 IST
The Centre on Thursday withdrew its order cutting interest rates for small savings schemes for Q1 of FY2021-22 (Photo Credits: Pixabay)
HIGHLIGHTS
Interest rates of small savings schemes of GOI shall continue to be at rates that prevailed as of March 2021: FM
Highlights
Interest rates of small savings schemes to continue.
Rates @ that existed in the last quarter of 2020-2021.
New Delhi: Finance Minister Nirmala Sitharaman announced government decision to withdraw orders on reduction of interest rate on small savings schemes. The FM assured that the rates to the last quarter of the financial year ended March 31 will be restored. Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021. Orders issued by oversight shall be withdrawn, Sitharaman said in an early morning tweet.