Sri Dwarakadheesh Investment Services
Sri Dwarakadheesh Investment Services
Fixed income products in India offer safe and stable returns, ideal for conservative investors seeking portfolio diversification.
Issued by: Reserve Bank of India (RBI) on behalf of the Government of India.
Types: Treasury Bills (T-Bills), Government Bonds, State Development Loans (SDLs).
Features: Long-term safety, sovereign guarantee, tradable on exchanges.
Ideal for: Long-term, risk-averse investors.
Tenure: 15 years (with option to extend in 5-year blocks).
Interest Rate: Set quarterly by the government (currently ~7.1% p.a.).
Tax Benefits: EEE (Exempt-Exempt-Exempt) status under Section 80C.
Ideal for: Long-term wealth creation with tax savings.
Tenure: 5 years.
Interest Rate: Fixed and compounded annually (~7.7% p.a. currently).
Tax Benefits: Eligible under Section 80C.
Ideal for: Small savers and conservative investors.
Offered by: Banks, NBFCs, and corporates.
Tenure: Flexible (7 days to 10 years).
Interest Rate: Varies (generally 6–8% for banks).
Taxation: Interest is taxable (TDS applicable).
Ideal for: Short to medium-term conservative investors.
Issued by: Public and private companies.
Risk: Higher yield but involves credit risk (based on issuer rating).
Returns: Higher than FDs/G-Secs if credit quality is moderate.
Ideal for: Investors seeking better returns with moderate risk.
Eligibility: Individuals aged 60+.
Tenure: 5 years (extendable by 3 years).
Interest Rate: ~8.2% p.a. (paid quarterly).
Tax Benefits: Section 80C deduction.
Ideal for: Retirees seeking regular income.
Tenure: 7 years.
Interest Rate: Floating (linked to NSC rate, currently ~8.05% p.a.).
Returns: Paid every 6 months.
Ideal for: Individuals looking for government-backed fixed returns.
Types: Liquid funds, short-term debt funds, gilt funds, etc.
Returns: Market-linked; relatively stable.
Taxation: Subject to capital gains tax.
Ideal for: Investors wanting liquidity with moderate returns.