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Saturday, October 23, 2021

Should double return from NSC, FD, RD; Keep an eye on government bonds


Invest in Government Bonds

Government bonds are also a better option among all investment options. They are considered very safe for investment in debt fund categories. The reason is that they are guaranteed by the government. There is a fixed interest on these bonds. Government bonds are also called government securities. Due to being a debt instrument, their returns are fixed at interest rates. Right now the interest rates are at lower levels. At the same time, looking at inflation, there is no hope of increasing it. Therefore, it can be a higher return option than small savings.

Governments issue

Government bonds are issued by the central and state authorities. The government usually issues bonds to meet its fiscal deficit. Sometimes they also need funds, due to which they are released. Through this, funds are raised from investors. Now investment is allowed even for small investors. These are issued for both short and long term.

Maturity 1 to 30 years

The maturity period of such bonds can be from 1 to 30 years. Short-term security is called a treasury bill. At the same time, securities government bonds with a maturity of more than 1 year. The paper quality of the bond is better due to being issued by the government. The risk in them is very less.

How much return in 5 years

IDFC Government Securities Constant Maturity

Return in 5 years: 11.17 per cent
Value of 1 lakh in 5 years: 1.70 lakh
10 thousand monthly SIP value in 5 years: 8.14 lakh

ABSL Government Securities

Return in 5 years: 10.49 percent
Value of 1 lakh in 5 years: 1.65 lakh
Value of 10 thousand monthly SIP in 5 years: 7.78 lakhs

DSP Government Securities

Return in 5 years: 10.16 percent
Value of 1 lakh in 5 years: 1.62 lakh
Value of 10 thousand monthly SIP in 5 years: 7.83 lakhs

Fixed deposit

There are many such government bonds, in which the returns for the last 5 years range from 7 to 12 per cent annually. At the same time, there are some 10-year maturity bonds, which returns of up to 10% per annum have been received. At the same time, most big banks are giving less than 6 percent interest on 5-year FD. If you choose the right scheme, it can be better than FD in terms of returns.

Comparison of returns on FD of 5 years


Rate of interest: 5.70 per cent
FD amount: 1 lakh
Amount on maturity: Rs 1,31,940


Rate of interest: 5.30 percent
FD amount: 1 lakh
Amount on maturity: Rs 1,29,462


Rate of interest: 5.35 percent
FD amount: 1 lakh
Amount on maturity: Rs 1,29,770


Rate of interest: 5.50 percent
FD amount: 1 lakh
Amount on maturity: Rs 1,30,696

How much interest in other small savings

Post Office RD: 5.8 percent
5 Year Time Deposit: 6.7%
NSC: 6.8 percent
Kisan Vikas Patra: 6.9 percent

How to invest?

It can be invested with the help of a brokerage platform. You can also invest in government bonds indirectly through mutual funds. Because debt funds invest their money in it.

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Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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