National Pension System (NPS) is a pension plan managed by the Pension Fund Regulatory and Development Authority (PFRDA) and is gaining popularity among investors primarily because of some tax modifications made in the scheme and the returns generated by the pension fund managers. 

At a time when many people are losing their jobs, experiencing salary cuts, or seeing the income from their businesses decline, people are often asking themselves this question: Should I go ahead and buy the house that I had planned to purchase before the pandemic broke out? Or should I postpone my purchase until the economic outlook improves? The short answer to this question is that each one of us needs to assess one’s own financial capacity before taking on this liability.

The stock market crash of March 2020 had erased a lot of gains from the mutual fund portfolio. But, then against popular perception and opinion, the reversal started to happen. After falling from January highs, the market has covered a lot of ground. Investors also need to understand that volatility is part of the equity markets. Government policies may take time to be fruitful. The global stock markets may show its own volatility thus impacting Indian markets to some extent.

Investors who are looking at fixed-income investment avenues such as bank fixed deposits, NSC, or KVP may consider investing in Floating Rate Savings Bonds.

To make sure that your future is financially secure, you need to plan in advance. How much to invest, where to invest, and when to invest are the most common questions that come to mind. Rajiv Bajaj, our MD, and a financial expert gives his suggestions on it.

Question:

I am a 64-year old doctor with savings of around Rs 1.5 crore. My monthly income is Rs 2-2.5 lakh, I want to work for another five years. What kind of mutual fund investments should I make to ensure a comfortable retirement?

There is no upper limit to invest in GOI Bonds and overall volumes have gone up to 10 times in the last 2 months.

In a downward interest rate scenario, when the Banks and NBFCs are reducing their Interest Rates beyond 7 per cent per annum there is an attractive offering 7.75 per cent Savings (Taxable) Bonds, 2018, issued by Government of India for Resident Individual Clients and HUF (Hindu Undivided Family).

BajajCapital with 56 years of service is changing with the time and going fully digital so that we can serve you our products directly while you sit in comfort at home.  - K.K.Bajaj

" River water remains fresh because it moves with the time, so are great minds which are nourished by the vigour of action and courage to take the leap. Mankind has progressed because a group of men has had the courage to take the leap."

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Insurance Regulatory and Development Authority of India (IRDAI), in June, directed insurance companies to stop selling long-term motor insurance package policy to new vehicle owners from August 1, 2020. The decision was announced by IRDAI to bring down the on-road price of a new vehicle. This means that customers purchasing a new vehicle from August 1 onwards will no longer have to purchase a long-term insurance policy which included own-damage (OD) cover and third-party insurance for three years for car owners and five years for two-wheeler owners. 

Driven by investments in liquid schemes as also banking and PSU funds, debt mutual funds saw an inflow of Rs 1.1 lakh crore in three months ended June 2020 after witnessing massive redemptions in the preceding quarter.

Most individual categories that invest in fixed-income securities, or debt funds, saw inflows. However, credit risk, overnight, ultra-short duration, medium duration and dynamic bond funds saw withdrawals.