Fixed Income Schemes accommodate a return on a fixed schedule while the payments can vary. Conservative investors often look forward to a safer form of investment instruments that carry minimum investment risk. While bank deposits have always been the first choice of such conservative investors, people keep looking for better avenues for investment. For such investors, fixed income schemes are appropriate options.
This is unlike a variable income security where the payments change on the basis of short term interests. Mentioned below are the few fixed income products for better understanding:
The main objective of this scheme is to generate returns that involve some risk. The portfolio constitutes of money market securities or debt securities. The asset size is about Rs. 287.07 Crores.
This fixed income schemes was introduced by the National Savings Organisation in the year 1968 in order to mobilize small savings. Individuals can open this account on their names as well as on the behalf of a minor. The investment limits are about a minimum of Rs 500 and the maximum you can invest/deposit is Rs. 1.50 Lakh per annum. The duration of the scheme is for about 15 years which can be extended for about 1 or more blocks of 5 years.
This is an open-ended scheme which seeks to generate returns along with considerably lesser risk. The portfolio constitutes of debt securities and the scheme seeks capital appreciation. This is a long-term investment that invests the money market and has an asset size of Rs. 315.77 Crore.
This bond is issued by the Reserve Bank of India whose rate of interest is about 8 percent per annum. The interest is taxable by the investor and is extremely safe since the bonds are issued by the government. There is a lock-in period of about six years and the minimum amount for issuing a bond is Rs. 1000.
This is unlike a variable income security where the payments change on the basis of short term interests. Mentioned below are the few fixed income products for better understanding:
- DSP BlackRock Ultra Short Term Fund
The main objective of this scheme is to generate returns that involve some risk. The portfolio constitutes of money market securities or debt securities. The asset size is about Rs. 287.07 Crores.
- Public Provident Fund (PPF)
This fixed income schemes was introduced by the National Savings Organisation in the year 1968 in order to mobilize small savings. Individuals can open this account on their names as well as on the behalf of a minor. The investment limits are about a minimum of Rs 500 and the maximum you can invest/deposit is Rs. 1.50 Lakh per annum. The duration of the scheme is for about 15 years which can be extended for about 1 or more blocks of 5 years.
- DSP BlackRock Bond Fund
This is an open-ended scheme which seeks to generate returns along with considerably lesser risk. The portfolio constitutes of debt securities and the scheme seeks capital appreciation. This is a long-term investment that invests the money market and has an asset size of Rs. 315.77 Crore.
- GOI Bonds
This bond is issued by the Reserve Bank of India whose rate of interest is about 8 percent per annum. The interest is taxable by the investor and is extremely safe since the bonds are issued by the government. There is a lock-in period of about six years and the minimum amount for issuing a bond is Rs. 1000.
