National Pension Scheme (NPS): Features, Benefits & Drawbacks

Tuesday, February 26th, 2019 Amritesh 4 responses

National Pension Scheme (NPS) is a retirement benefit scheme introduced for the Individuals to provide regular income post retirement. The scheme was initially rolled out for the Government Employees, but in 2009 the scheme was opened for all the citizens of India. Currently, Individuals between the age of 18-65 years is eligible to subscribe to National Pension Scheme (NPS). The age limit for the subscription to the scheme was increased to 65 years from 60 years. Recently, Government allowed tax exemption on the NPS Withdrawal corpus (60% of total accumulation). Like every financial product, National Pension Scheme (NPS) has its own sets of features, advantages and disadvantages. The National Pension Scheme (NPS) is hailed as one of the economical retirement…

National Pension Scheme (NPS) : All Citizen Model

Tuesday, February 12th, 2019 Amritesh 3 responses

National Pension Scheme (NPS) was introduced by the Government of India in 2004. NPS is aimed at the providing financial security to the Subscribers post retirement. Initially, NPS was available only for the Government Employees. However, in 2009 the scheme was made available for common citizens as well. The scheme is strategically designed to strike balance between return and risk, in order to ensure optimum return while safeguarding the investment against market volatility. National Pension Scheme (NPS) has been discussed in my previous articles as well; the links has been shared below. NPS Government Model NPS: Retirement Benefit Plan National Pension Scheme (NPS) All Citizen Model was introduced in 2009. It is a low cost, tax efficient retirement plan wherein…

National Pension Scheme (NPS): Government Model

Tuesday, January 15th, 2019 Amritesh 2 responses

National Pension Scheme (NPS) was introduced for the Central Government Employees (except armed forces) and State Government Employees (as per the date notified by the State Government) joining service on or after 1st January 2004. National Pension Scheme (NPS) comprises of two Funds, Tier-1 & Tier-2, wherein contribution to Tier-1 is mandatory for all Government Employees, whereas contribution to Tier-2 fund is optional for the Subscribers. National Pension Scheme (NPS) has replaced the Government Provident Fund (GPF). NPS is expected to provide better return in the long run as the investment is diversified into various asset class. NPS: Retirement Benefit Plan National Pension Scheme (NPS): All Citizen Model Respective Employee as well as the Government contributes to the Fund, investment/deposits…

Small Savings Schemes Interest Rates For 4th Quarter (January-March) Of Financial Year 2018-19

Saturday, January 5th, 2019 Amritesh no responses

Government has revised the interest rates on selected Small Savings Schemes for the 4th Quarter of the Financial Year (FY) 2018-19. However, the interest rate on popular Savings Schemes like Kisan Vikas Patra (KVP), Public Provident Fund (PPF) and National Savings Certificate (NSC) remain unchanged for the concerned period. Previously, Government had decided to align the small savings interest rates with the relevant market rates of Government Securities. The rates are now recalibrated every quarter in order to maintain it at par with the current market rates. The interest rates on Small Savings Schemes are slightly higher as compared to rates offered by Banks. The Central Bank (RBI) had been clamoring for revision in rates as it is leading to…

Investing In Kisan Vikas Patra (KVP): Should You Invest?

Tuesday, December 18th, 2018 Amritesh no responses

Kisan Vikas Patra (KVP) is a saving certificate scheme re-introduced by the Government in 2014, offering guaranteed return on investment. The interest rate on the KVP is declared on quarterly basis. Kisan Vikas Patra (KVP) along with National Savings Certificate (NSC) and Public Provident Fund (PPF) are some of the popular Small Savings Schemes offering guaranteed returns on investment. Individuals may be lured to invest in Kisan Vikas Patra (KVP) as it offers guaranteed returns. However, investing in Kisan Vikas Patra (KVP) may not be an ideal option for many. In my previous article, I had discussed the Kisan Vikas Patra in details. Link shared below. Kisan Vikas Patra : All You Need To Know Although, Kisan Vikas Patra (KVP)…

Sukanya Samriddhi Yojana (SSY): Empower The Girl Child

Friday, December 7th, 2018 Amritesh no responses

Sukanya Samriddhi Yojana (SSY) is a deposit/investment scheme for Girl Child. It is a Government initiative started vide notification dated 02.12.2014 under the Beti Padhao Beti Bachao (Save and Educate Girl Child) campaign keeping in mind the welfare and educational needs of a girl child. The Scheme is aimed at empowering the girl child, encouraging Parents/Guardian to invest towards their daughter/s future, enabling them to go for higher education or meet any other financial obligations arising later. Government has amended the maturity and withdrawal norms via Sukanya Samriddhi Account Rules, 2016. Those changes have been incorporated in this article. Small Savings Schemes Comparison: Find Out the Best In this post we will look at the Salient Features and Benefits under…

Kisan Vikas Patra (KVP): All You Need To Know

Tuesday, November 27th, 2018 Amritesh 6 responses

Kisan Vikas Patra (KVP) is a guaranteed return certificate scheme re-introduced in 2014. The scheme is mainly targeted at the Individuals who do not have access to proper banking facilities and financial intermediaries. Another reason for re-introduction of KVP is to dissuade lower income group individuals from falling for any ponzi schemes and losing their hard earned money. The features offered is identical to other Savings Scheme offered by the Government but with tweaks in the rate of interest, tenure and benefits. The Investment doubles on completion of tenure. It must be noted, investment in KVP is not eligible for Income Tax deduction and even the interest earned is Taxable. National Savings Certificate (NSC), Equity Linked Savings Scheme (ELSS), Public…

Online Financial Planning: Simple & Easy Step Towards Smart “Financial Planning”

Tuesday, September 18th, 2018 Amritesh no responses

“Lack of Investment Strategy along with undefined financial objectives is hampering your Financial Planning?” Well, most of the Individuals are often confused when it comes to investment decision. This is largely due to the fact that many of the investors lack the expertise when it comes to choosing the right investment strategy, leading to bad investment decision. Hence, it is important for an Investor to get an expert guidance which would help them choose the ideal investment strategy to accomplish their “Financial Goals”. Online Financial Planning Services is one such platform which helps Individuals with their “Financial Planning”. The service may be easily accessed from the comforts of home or office, enabling Investors to take an informed decision in alignment…

SIP By SIP, Plan for a Secure Future!!!

Tuesday, July 17th, 2018 Amritesh no responses

Ever imagined that securing one’s future could be as easy as taking a “SIP” of Coffee? Sounds weird!!! Well, I’m going to explain as to how one can easily secure his/her future just by being financially disciplined. In my previous post I have already expressed the need to “Plan Your Investment”, in this post I will discuss the possible ways to achieve your Financial Goals with small investments. Attainment of Financial Goals does not necessarily require lump sum investments. The same may be achieved with the combination of smart planning, financial discipline and defined objectives. How SIP helps in “Planning Your Investment”? As all of you are aware, Mutual Fund is fast emerging as the preferred choice of investment among…