Month: October 2021

1. Tax-saving Fixed Deposits

Tax savings FDs are different from other types of FDs in terms of their lock-in period; these FD will have to be fixed for 5 years in a bank. You can avail of a tax deduction on investments in this FD under Section 80C of the Income Tax Act, 1961. For senior citizens, it can be a good option as you can claim a maximum deduction of Rs. 1.5 lakh yearly by investing in a tax-saving FD scheme. FD is a lucrative option for citizens as you can get the interest monthly, quarterly or yearly basis. Senior citizens, who have retired can earn their monthly needs from this tax savings FD scheme with a lock-in period of 5 years. Senior citizens will receive higher interest rates than other citizens. SBI offers a 6.20% interest on a tax-saving FD scheme for senior citizens, Ujjivan Small Finance Bank offers a better interest on the same scheme.

2. Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme (SCSS) is another popular choice among senior citizens, and one can open this account in any bank or Post Office, with accurate age proof. The benefits earned under the scheme will be the same irrespective of the fact that you are opening the account in a bank or a post office. You will get 7.4% PA interest yearly. You can make only one deposit in the account in multiple of Rs. 1000, and the maximum limit of this FD is Rs. 15 lakh. In this investment, you can get a tax benefit under Section 80C of the Income Tax Act, 1961.

3. National pension scheme (NPS)

The national pension scheme (NPS), offered by the Pension Fund Regulatory and Development Authority (PFRDA) is open for all Indian employees; you will have to make a minimum contribution of Rs. 6000 in an FY. You can either pay the amount as a lump sum or in a monthly installment of Rs. 500. The age limit has recently been changed, the maximum age of joining NPS is increased to 70 years now, from the previous 65 years. This kind of investment is linked with the equity market, thus it offers a higher return than other assured investment options. The interest rate of this plan is 9%-12%. you can withdraw up to 25% of the total contribution 3 times in 5 years.

4. Tax-free bonds

Tax-free bonds are preferred by citizens in the highest tax bracket. Public sector undertakings like IRFC, PFC, NHAI, HUDCO, REC, NTPC, NHPC, and Indian Renewable Energy Development Agency (IREDA) can offer these bonds. The tenure of these bonds are, 10 years, 15 years, and 20 years, and you will have to buy these bonds through a Demat account. However, you can sell the bonds in the secondary market before this time. The government will notify the issue time of these bonds. But you can also buy these bonds from the secondary market at any time, as these are listed on the BSE and NSE. These bonds are good investments options for senior citizens with good lump sum money, and the interest will be tax-free according to government regulations.

5. Public Provident Fund (PPF)

Public Provident Fund (PPF) is one of the top rates investment opportunities in India considering its interest rate, assurance, and tax-saving factors in mind. The union government of India issues the PPF scheme through banks or post offices. The benefits are the same in a bank or a post office, as the scheme remains the same. The interest of PPF is 7.1 % PA (compounded yearly), which is quite good than other assured options. You can invest a minimum of Rs. 500 and maximum Rs. 1,50,000 in an FY and the deposits can be made in lump-sum or installments. The deposits qualify for deduction under section 80C of the Income Tax Act. However, the tenure of this scheme is 15 years.

After getting hit in Q1FY22, the consumer durables and electrical industry saw demand recovery in Q2, Emkay Global has said in a report.

“However, in our view, the high base from last year should restrict volume growth on a yoy basis. The companies should witness double-digit value growth, backed by price hikes initiated in the last three quarters to offset commodity inflation. C&W segment will be an outlier, with strong growth led by ~35% price increase,” the brokerage has said.

According to Emkay Global following are the Channel feedback indications:
1) a moderation in demand recovery in Aug and Sept after seeing strong comeback in July; 2) Channel inventory across the product categories is at normalized levels, 3) relatively better performance of Electricals compared with white goods; 4) a rebound in private capex/small-ticket projects but only gradual pick-up in large government orders benefitting C&W; 5) use of alternative materials, price hikes and product mix change (in a few companies), which should support stability/improvement in GM qoq; and 6) competitive intensity remains high durables along with premiumization story.
“The prices of some constituents in the commodity basket have cooled off (except for aluminum) vs. Q1, along with a stable USD/INR. Within our coverage universe, Havells and Whirlpool should see a healthy improvement in GM sequentially, while others should post stable numbers. Contract manufacturers and C&W companies should see a sharp contraction in GM yoy, while the trend should be stable to better qoq. Despite elevated revenue growth, high margin base in Q2FY21 shall restrict EBITDA growth for few companies, with costs expected to normalize. Our coverage universe should see a 246bps qoq EBITDA margin expansion,” the brokerage has noted.