Latest news with #InvestmentPlan
News18
6 days ago
- Business
- News18
Post Office Recurring Deposit (RD) Scheme: Earn Rs 35 Lakh In Just 5 Years
Do you want to invest your money safely and are looking for a simple, reliable savings plan? Then the Post Office Recurring Deposit (RD) Scheme could be an ideal option for you. Not only is it a secure way to grow your money, but it also encourages the habit of saving regularly. Much like a Systematic Investment Plan (SIP), this scheme allows you to deposit a fixed amount every month. The best part? There's no market risk involved. With a fixed interest rate and a five-year tenure, it provides peace of mind for investors. (News18 Telugu) The Post Office RD is backed by the Government of India, making it one of the most secure small savings options available. You simply need to invest a small fixed amount each month. After five years, you will receive your complete investment along with the accrued interest. Since the scheme is not affected by market fluctuations, it's well-suited for those looking for guaranteed returns. Over time, you can build a substantial corpus without any stress. (News18 Telugu) 3/7 You can start investing with as little as Rs 100 per month, and there's no upper limit, which makes the scheme accessible for all income groups. Even children aged 10 or above can open an RD account, provided their parents or guardians assist them. Once the minor turns 18, their KYC documents must be updated. Managing the account is also hassle-free, it can be done easily through mobile banking or e-banking. (News18 Telugu) Opening a Post Office RD account is a straightforward process, though there are a few guidelines to follow. The first instalment must be deposited at the time of account opening. If the account is opened before the 16th of the month, all future installments must be deposited by the 15th of every month. If opened after the 16th, the due date for future deposits falls between the 16th and the last working day of the month. (News18 Telugu) Let's understand the returns with a simple example. If you invest Rs 50,000 every month for five years, your total investment will amount to Rs 30 lakh. With a fixed annual interest rate of 6.7%, the interest earned over this period would be approximately Rs 5.68 lakh. After deducting TDS, your maturity amount would be around Rs 35.68 lakh. That's a significant gain in just five years, and all without market-related risks. (News18 Telugu) Another advantage of the Post Office RD scheme is the availability of a loan facility. After completing 12 monthly installments, you become eligible to borrow up to 50% of the total amount you've deposited. You can repay the loan either in one lump sum or in monthly installments. If the loan remains unpaid, the outstanding amount will be adjusted against your maturity value when the scheme ends. (News18 Telugu) In summary, the Post Office RD is a great option for anyone looking to grow their savings safely, whether you're new to investing or simply seeking guaranteed returns. With minimal monthly deposits, no market volatility, and government backing, it remains one of the most trusted savings plans in India. (News18 Telugu)
Hans India
6 days ago
- Business
- Hans India
SIP vs RD: Which is Better for Building Wealth?
When planning to save consistently, two common choices are Systematic Investment Plans (SIPs) in mutual funds and Recurring Deposits (RDs) offered by banks or post offices. While both promote regular savings, they differ in terms of return potential, risk level, and taxation. Knowing how each option works can help you choose the one that best fits your financial goals and risk appetite. Key Takeaways • SIPs invest in mutual fund schemes and are subject to market movements, whereas RDs offer fixed interest returns provided by banks or post offices. • SIPs have the potential for higher long term returns but come with market related risks. • RDs are generally low risk and suitable for short term goals, though the returns may be lower compared to market linked investments. • Returns from SIPs are taxed as capital gains, while RD interest is taxable as income under your applicable tax slab. • Using both SIPs and RDs together can help balance growth potential and capital safety in your overall savings plan. How Do SIPs and RDs Work? Investment Type • SIP (Systematic Investment Plan): Market-linked investment via mutual funds. • RD (Recurring Deposit): Fixed-income product with guaranteed returns. Returns • SIP: Depends on mutual fund performance, potential for higher long-term gains. • RD: Offers fixed interest rate determined by the bank. Compounding • SIP: Linked to fund performance; compounding varies based on market growth. • RD: Compounded quarterly by banks. Taxation • SIP: Capital gains tax applies depending on fund type and holding period. • RD: Interest is added to income and taxed as per the investor's income slab. Suitability • SIP: Ideal for long-term wealth creation and goal-based investing. • RD: Better suited for short-term savings with capital safety. Minimum Investment • SIP: As low as ₹100/month (varies by AMC and fund type). • RD: Usually starts from ₹500/month, depending on the bank. Comparing Long Term Returns: SIP vs RD Systematic Investment Plans ( SIP ), particularly in equity mutual funds, have the potential to generate better returns over longer periods such as 5 to 10 years. This is due to the benefits of compounding and rupee cost averaging. However, since mutual funds are market linked, returns are not guaranteed and may vary. Recurring Deposits (RDs), offered by banks and post offices, provide fixed and assured interest. They are more suitable for short term financial needs, but their returns may not keep pace with inflation over longer durations. SIPs (Mutual Funds): • For equity mutual funds, Long Term Capital Gains (LTCG) tax is applicable at 12.5% (for investments held over 12 months), with an exemption of up to ₹1.25 lakh per year. • Short Term Capital Gains (STCG) on equity funds (if sold within 12 months) are taxed at 20%. • For debt funds, both short and long term capital gains are taxed as per your income tax slab, with no indexation benefits. Recurring Deposits (RDs): • Interest earned on RDs is considered Income from Other Sources and is taxed as per your applicable income tax slab rate. • TDS (Tax Deducted at Source) may also apply if interest exceeds the prescribed limit. How Compounding Works in SIPs vs RDs Recurring Deposits (RDs): Interest in RDs is compounded quarterly, offering steady and predictable growth. You know the maturity amount in advance, which makes RDs suitable for short term or low risk savings goals. Systematic Investment Plans (SIPs): In SIPs, returns (if any) are reinvested automatically. Over the long term, this compounding effect combined with market participation can potentially accelerate wealth creation. However, SIP returns are market linked and not guaranteed, so they may fluctuate based on fund performance. Managing Risk: Capital Safety vs Market Exposure • RDs protect your capital and offer assured returns. • SIPs involve market risk but offer a chance to earn inflation beating returns. If you are risk averse or saving for short term goals, RDs may be better. If you can stay invested for 3+ years, SIPs can work better for wealth creation. Balanced Strategy: Using SIP and RD Together Yes, combining a Systematic Investment Plan (SIP) and a Recurring Deposit (RD) can help you balance safety and long term growth: • Recurring Deposits (RDs) can be used for short term goals or emergency funds, as they offer fixed and predictable returns with low risk. • Systematic Investment Plans (SIPs) in mutual funds are suitable for long term goals like retirement, home purchase, or children's education, as they have the potential to generate higher returns over time, though they are subject to market risks. Conclusion Systematic Investment Plans (SIPs) and Recurring Deposits (RDs) cater to different financial needs. SIPs in mutual funds may help you build long term wealth through market participation, making them suitable for goals like retirement or home purchase though returns are market linked and not guaranteed. RDs, with their fixed and predictable returns, are ideal for short term needs and risk averse investors. You do not have to choose one over the other. A combination of both can create a balanced strategy offering capital safety for near term goals and growth potential for the future. Always align your investment choice with your financial goals, time horizon, and risk appetite. FAQs Q1. Which is better: SIP or RD? SIP is better for long term wealth creation. RD is better for capital safety and short term goals. Q2. Are SIP returns guaranteed? No, SIPs are market linked and returns depend on fund performance. Q3. Do RDs carry any risk? RDs are considered low risk with guaranteed returns. However, the returns may not beat inflation over the long term. Q4. Is SIP safe for beginners? SIPs can be a suitable option for beginners, especially when investing in mutual funds with lower volatility such as large cap or hybrid funds. While mutual fund investments are subject to market risks, starting with a small amount and staying invested for the long term can help manage risk and build investing discipline. Always choose funds that match your risk profile and financial goals. Q5. Can I invest in both SIP and RD at the same time? Yes. Many investors use RDs for short term needs and SIPs for long term wealth creation.
Time of India
14-07-2025
- Business
- Time of India
Nearly 112 lakh SIPs closed in 2025: Should you worry about the negative net SIP trend?
Live Events What is the SIP stoppage ratio? The calendar year 2025 has seen a surprising development in the mutual fund space with around 112 lakh net SIPs (Systematic Investment Plans) closed so far, which raises a question whether the investors should worry about the negative net SIP trend to which a market expert says that the decline in net new SIP registrations this year largely reflects cautious investor sentiment amid global volatility.'The decline in net new SIP registrations this year largely reflects cautious investor sentiment amid global volatility. Events like the tariff changes announced by Trump earlier this year triggered some nervousness, leading to the liquidation of SIPs, particularly around April. However, this should not be a major concern, as we are already seeing signs of retail investors returning with renewed confidence as markets stabilise,' Shruti Jain, Chief Strategy Officer, Arihant Capital Markets shared with the first six months of the current calendar year, only two months have witnessed net new SIPs registered whereas four months saw more of SIP closure . According to a report by Nomura, the net new SIPs registered in January were negative 5 lakh which indicates more of SIPs February, March and April, around 10 lakh, 11 lakh, and nearly 116 lakh SIPs were closed, the report Investment Plan is always considered a disciplined and steady route for building wealth over time. With regular monthly contributions, SIPs help investors navigate market ups and downs through rupee cost averaging. However, the slowdown in SIP additions points to investors reacting to high valuations and bouts of volatility, Jain more SIPs closed in the current calendar year so far, Jain firmly said that some may have exited due to subpar returns over the past year. 'However, for long-term investors, this is precisely why SIPs are recommended—to navigate volatility through disciplined investing. It is advisable not to stop SIPs based on short-term market movements,' she mutual fund SIP stoppage ratio was recorded at 77.77% in June from 72.12% in May and 58.68% in June 2024 indicating that though more mutual fund SIPs were registered but the SIPs either stopped or their existing tenures ended have also increased, according to the data by Association of Mutual Funds in India (AMFI).In April, the stoppage ratio was 297% as the number of SIPs stopped or discontinued were 136.99 lakh whereas the number of new SIPs registered in the same period stood at 46.01 January, February, and March, the SIP stoppage ratio was recorded at 109%, 122%, 128% SIP stoppage ratio is the number of discontinued SIPs compared to the number of new registered SIPs. If this ratio crosses 100% then it indicates that more mutual fund SIPs are being stopped than the ones one must keep in mind that stoppage ratio also includes those SIPs that have expired. Besides, investors may have simply switched from one SIP to another as part of their portfolio the SIP stoppage ratio was over 100% for four consecutive months, is it important for investors to monitor SIP stoppage ratio or registration trend when making long-term investment decisions to which Jain says that while SIP trends provide insight into overall retail participation and sentiment, they shouldn't drive long-term investment phases come and go, but consistent investing through SIPs ensures disciplined wealth creation over time therefore it's best to view such trends as temporary reactions to market events rather than signals to alter a long-term plan, Jain recommends.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ alongwith your age, risk profile, and Twitter handle.
Fashion Value Chain
01-07-2025
- Business
- Fashion Value Chain
Avoiding Risk vs Preparing for it: How Bajaj Finserv Small Cap Fund Can Help
When it comes to investing in small cap funds, the fear of risk often dissuades investors. However, it is important to consider that taking a more structured approach to investing can help in mitigating market risks. The Bajaj Finserv Small Cap Fund is designed with this philosophy in mind. It comprises strategic insights and disciplined execution to help investors explore more opportunities in the small cap market. Invest in Bajaj Finserv Small Cap Fund NFO Understanding small caps Small cap funds consist of companies that typically rank 251st and beyond in market capitalization as per SEBI's guidelines. These businesses are often in their novice stages, operating in emerging sectors, this means that they have a potential to scale rapidly. While this can come with a higher volatility, it can also potentially create space for long-term value discovery. What differentiates small caps from others is their potential to bounce back from market fluctuations. Hence, through the suitable selection process, small caps can potentially help grow wealth in the long run, making them a viable part of a broader mutual fund portfolio. Risk isn't the enemy It is essential to understand and manage risk when investing in small cap funds instead of fearing it. Unlike large cap companies that can already be priced efficiently in the market, small caps can be mispriced or overlooked presenting an opportunity for a potential entry point into the market. Instead of trying to avoid risks, you can take a structured approach which can help you mitigate market volatility. This includes diversifying across sectors and tracking company fundamentals while being mindful of governance quality. The Bajaj Finserv Small Cap Fund approach The Bajaj Finserv Small Cap Fund has a 3-in-1 advantage of Growth, Quality and Value. The fund's framework seeks out companies that are scalable, fundamentally strong and trading at prices lower than their intrinsic value. The fund is influenced by Bajaj Finserv AMC's proprietary INQUBE philosophy. It is managed by an experienced team that applies both top-down trends and bottom-up stock analysis. It focuses on five key pillars: Quality : Companies with sound fundamentals and consistent performance Growth : Businesses with long-term scalability potential Undervalued opportunities : Stocks that may be temporarily mispriced Leadership : Dominant players in niche or emerging segments Governance: Transparent, well-managed companies with aligned promoter interests By applying these filters, the Bajaj Finserv Small Cap Fund aims to build a balanced portfolio that can help manage risk while capturing growth potential. Planning matters more than timing While timing the market can be a good way to manage your investment, it can be a challenging task to keep up with. A more practical way to do this is to invest through a Systematic Investment Plan, which allows you to allocate funds regularly. This can help you potentially reduce the impact of market volatility through rupee cost averaging and promote consistency and discipline. You can also use tools like an SWP calculator to plan out your exit strategy. Through a Systematic Withdrawal Plan, you can align your redemptions to your life goals and cash flow needs. Conclusion Investing in the small cap sector requires both preparation and perspective. The Bajaj Finserv Small Cap Fund offers a thoughtfully designed approach that brings together an ambition to grow while mitigating market risks. For investors who wish to build a long-term portfolio, small cap can offer a suitable opportunity to explore investments with the suitable strategy in place. How to invest You can invest in the Bajaj Finserv Small Cap Fund online through the official Bajaj Finserv AMC website or via authorised mutual fund distributors. Investments can be made through director regular plans. To learn more about the investment process, visit Units will be available at a offer price of Rs. 10 per unit during the NFO period (June 27, 2025 – July 11, 2025). Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Time of India
01-07-2025
- Business
- Time of India
JioBlackRock Overnight Fund opens for subscription. Who should invest?
Jio BlackRock Mutual Fund has launched - JioBlackRock Overnight Fund , and the NFO of the fund is open for subscription and will close on July 2. The investment objective of the scheme is to generate regular income through investment in a portfolio comprising debt and money market instruments with overnight maturity. The fund is an open-ended debt scheme investing in overnight securities with a relatively low interest rate risk and relatively low credit risk. Also Read | JioBlackRock Mutual Fund: 3 NFOs open for subscription today. Should you invest? Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » This overnight fund is suitable for investors' regular income over a short term who may be in line with overnight call rates and want investment in debt and money market instruments with overnight maturity. The scheme will be benchmarked against the Nifty 1D Rate Index and will be managed by Arun Ramachandran, Vikrant Mehta, and Siddharth Deb. Live Events The fund will allocate 0-100% in overnight securities or debt and money market instruments maturing on or before the next business day. The total assets of the scheme will be invested in debt securities and money market instruments maturing on or before the next business day. In case of securities with put and call options (daily or otherwise) the residual maturity (deemed or actual) shall be on or before the next business day. The scheme will offer only direct plans, and the plan shall offer only growth options. The minimum application amount for lumpsum investment is Rs 500 and any amount thereafter. The minimum amount for weekly, monthly, and quarterly Systematic Investment Plan (SIP) is Rs 500 and in multiples of Re 1 thereafter with a minimum of six installments. The exit load is nil on this overnight fund. The maximum total expenses ratio (TER) permissible under Regulation 52 (6) (c) is up to 2%. The principal invested in the scheme will carry low risk, as indicated by the scheme's riskometer. Who can invest? According to the Scheme Information Document (SID) of the overnight fund, the following persons are eligible and may apply for subscription to the units of the scheme - Resident Indian adult individual either singly or jointly (not exceeding three), minor through parent/lawful guardian, companies, bodies corporate, public sector undertakings, association of persons or bodies of individuals and societies registered under the Societies Registration Act, 1860 (so long as the subscription of units is permitted under their respective constitutions), religious and charitable trusts under the provisions of Section 11(5)(xii) of the Income Tax Act, 1961 read with Rule 17C of Income-tax Rules, 1962. Also Read | NFO Alert: JioBlackRock Money Market Fund opens today, offers low interest rate risk and moderate credit risk The others that are eligible for investment includes trustees of private trusts authorised to invest in mutual fund schemes under their trust deeds, Partnership Firms, Proprietorship in the name of the sole proprietor, Banks and Financial Institutions, Non-resident Indians (NRI)/Persons of Indian Origin (PIO) / Overseas Citizen of India (OCI) residing abroad on full repatriation basis or on non-repatriation basis, Army, Air Force, Navy and other para-military funds, Scientific and Industrial Research Organizations, Other Mutual Funds registered with SEBI. And lastly, Foreign Portfolio Investors subject to the applicable regulations, International Multilateral Agencies approved by the Government of India, Universities and Educational Institutions, and any other category of investor, so long as, wherever applicable, they are in conformity with applicable SEBI Regulations/RBI, etc. According to a release by ICRA , the provisional rating assigned to all three funds is [ICRA]A1+mfs. The provisional rating for the JioBlackRock Overnight Fund will be finalised upon the launch of the scheme, and analysis of the credit score of the scheme for at least three months, post launch, and its meeting the benchmark score for the assigned rating, the ICRA release said. According to the Sebi mandate, overnight funds make investments in overnight securities having a maturity of 1 day. Overnight funds are ideal for investors who need a very safe place to park their money for just a few days. These funds invest in instruments with a one-day maturity and carry minimal risk. They are well-suited for highly conservative investors, corporates, or individuals who want instant liquidity without exposing their money to market volatility. Also Read | JioBlackRock Liquid Fund NFO to open on June 30. A safe bet for regular income? In addition to the JioBlackRock Overnight Fund, the fund house has also launched a liquid fund and a money market fund as well. The new fund offer (NFO) of money market fund and liquid fund are open for subscription and will close on July 2. ICRA has assigned [ICRA]A1+mfs rating to the JioBlackRock Money Market Fund and the JioBlackRock Liquid Fund as well.
