Why Fixed Income Products Are Important Now.
In my opinion fixed income products would form an important part of one's financial portfolio, and their percentage of composition would vary depending on an Individual's risk profile and financial goals.
Fixed income products form the perfect bridge that can be depended upon as they offer investments with a relatively low risk and can surely be a much considered a better risk vs. return option rather than investing one fund's in the bank.
For the investor there are a variety of fixed income products at his disposal and he should use good wisdom in choosing the right product that would suit his profile and financial portfolio.
Amongst the most popular fixed income products that investors have routinely invested over the years have namely been:
1.Company Fixed Deposits.
2.Government of India Bonds.
3.Non-convertible debentures.
Company fixed deposits, are basically done by promoter companies when they would require funding to promote their own business interests. Screening of the right company and investing is a good idea in these cases, one should do a good amount of research on companies and should then proceed for investments. Investors should however bear in mind that investments into these companies are not secured and he would not be able to take back his investments in case of default by the company concerned.
Government of India bonds are also a good option for investment, as these bonds are released by the government for capital funding of their pipeline or future projects. These bonds can be held by both Indians and Non-residential Indians; however investors pls note that investing in these bonds is taxable, under the income tax slabs, however wealth tax would not be applicable for investments made here.
Lastly, I would recommend investing in NCD's or non-convertible debentures these are debt instruments of a fixed tenure issued by companies which are listed on the stock exchange, they are raised by companies for business purposes. Compared to investing in fixed deposits in a bank, it would be wise to invest in NCD's as bank fixed deposits are secured only till the amount of Rs 1 lakh, while the security on NCD's is greater.
On a concluding note, the investor should be wise and a decision should be taken now if he has not yet invested in any of the fixed income products listed above, they can surely be relied upon to make one's portfolio balanced in nature.
Disclaimer:
1. Views as are mentioned in the article are personal views of Author and nothing to link with Co., its Director and Employees.
2. All investments are subject to market risk and you need to consult your financial advisor/consultant before investment.
Fixed income products form the perfect bridge that can be depended upon as they offer investments with a relatively low risk and can surely be a much considered a better risk vs. return option rather than investing one fund's in the bank.
For the investor there are a variety of fixed income products at his disposal and he should use good wisdom in choosing the right product that would suit his profile and financial portfolio.
Amongst the most popular fixed income products that investors have routinely invested over the years have namely been:
1.Company Fixed Deposits.
2.Government of India Bonds.
3.Non-convertible debentures.
Company fixed deposits, are basically done by promoter companies when they would require funding to promote their own business interests. Screening of the right company and investing is a good idea in these cases, one should do a good amount of research on companies and should then proceed for investments. Investors should however bear in mind that investments into these companies are not secured and he would not be able to take back his investments in case of default by the company concerned.
Government of India bonds are also a good option for investment, as these bonds are released by the government for capital funding of their pipeline or future projects. These bonds can be held by both Indians and Non-residential Indians; however investors pls note that investing in these bonds is taxable, under the income tax slabs, however wealth tax would not be applicable for investments made here.
Lastly, I would recommend investing in NCD's or non-convertible debentures these are debt instruments of a fixed tenure issued by companies which are listed on the stock exchange, they are raised by companies for business purposes. Compared to investing in fixed deposits in a bank, it would be wise to invest in NCD's as bank fixed deposits are secured only till the amount of Rs 1 lakh, while the security on NCD's is greater.
On a concluding note, the investor should be wise and a decision should be taken now if he has not yet invested in any of the fixed income products listed above, they can surely be relied upon to make one's portfolio balanced in nature.
Disclaimer:
1. Views as are mentioned in the article are personal views of Author and nothing to link with Co., its Director and Employees.
2. All investments are subject to market risk and you need to consult your financial advisor/consultant before investment.
