Investors seeking higher interest rates are turning to the Government of India Floating Rate Bond 2034, which offers an annual interest rate of 8.05% from October 2023 to April 2024.
Updated:
April 11, 2021 22:40 IST
Updated:
Mutual funds are not meant to provide regular dividend options.
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Model house, house keys and contract: real estate, loans and investments concept. Sealing a deal. Home Front view standing at the contract with keys and pend
Mutual funds are not meant to provide regular dividend options.
Q. I am a 28-year-old working in a PSU for the last 4 years. All my monthly income goes towards repaying a home loan that I took 2 years ago, supporting a brother and a sister in their education and monthly expenses of parents (purchased house) and wife (rent) who live separately.
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.