1. Fixed Deposits
FDs are one of the oldest and most common methods of investing. When it comes to assured returns, choosing the right type of savings scheme makes all the difference.
Fixed Deposits let you make the most of value-added benefits as you create wealth at low risk.Fixed Deposits in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits.
Company Fixed Deposits offer comparatively higher returns than banks.
Choose the best tenure for you from a wide range as per your convenience. You can choose how frequently you want to receive your interest payments:
Many companies operating in the Company Deposit market. This will help you decide whether to renew or reshuffle the deposit. Attractive rates as applicable from time to time.
2. Bonds
A bond is a debt security, similar to an IOU. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. When you buy a bond, you are lending to the issuer, which may be a government, municipality, or corporation.
NCD (Non Convertible Debentures) is essentially a debt instrument with a fixed tenure that pays a certain rate of interest monthly, quarterly, annually or at the end of the tenure. The money invested is returned either over the tenure of the investment or at the end of the tenure (referred to as bullet payment). These are certificates issued by companies to raise funds through the public issue. These instruments cannot be converted into equity shares and usually carry higher interest rates than the convertible ones.
The Government of India 8% taxable saving bond 2003, is an instrument for those investors who are seeking a secured return with almost no risk. It is not a good option for those investors who are looking for capital appreciation or high and risk free returns.
Private Placement is a way of raising capital through an offer for subscribing to securities by a select investor class such as banks, mutual funds, insurance companies and pension funds. Since here the securities are not made available for subscription to public at large in the open market but only to select specific investors, it is known as private placement. Capital invested in a company that is not publicly traded on a stock exchange is known as Private Equity. It involves investors directly making investments into a private company or conduct buyouts of public companies resulting into the delisting of the public companies or significant minority investments in Public Companies holding non-tradable (i.e. Locked in) Equity. Capital for investment is usually raised from the institutional investors.
Tax-free bonds are debt instruments that pay income that is exempt from federal and/or state income taxes. Tax free refers to certain types of goods and/or financial products (such as municipal bonds) that are not taxed and with earnings that are not taxed. The tax free status of these goods and/or funds may incentivize individuals and business entities to increase spending or investing, resulting in economic stimulus. Governments will often provide a tax break to investors purchasing government bonds to ensure that enough funding will be available for expenditure projects.
Capital bonds are being issued as "Long term specified assets" within the meaning of Sub- Section 54-EC of the Income Tax Act, 1961. Those desirous of availing exemption from capital gains tax under Section 54 EC may invest in these bonds. Capital gains arising from transfer of Long-term capital assets can be invested in these bonds within a period of six months from the date of transfer of the asset for getting exemption from the capital gains tax.Eg-REC & NHAI Bonds