Category Archives: Others

Best investments for 20 years 2015

What will change the world over the next 20 years? And if you think you know, are you willing to put money on it? Long-term changes to factors such as population, climate and technology will shape investment returns for decades and identifying them early is the Holy Grail for investors. No one knows what’s around the corner, but here we’ve sought to identify some big investment plans that look likely to generate rich returns over the next couple of decades – and warn against getting carried away in the pursuit of them.

There are long term investments – An account on the asset side of a company’s balance sheet that represents the investments that a company intends to hold for more than a year. They may include stocks, bonds, real estate and cash. The long-term investments account differs largely from the short-term investments account in that the short-term investments will most likely be sold, whereas the long-term investments may never be sold.

A common form of this type of investing occurs when company A invests largely in company B and gains significant influence over company B without having a majority of the voting shares. In this case, the purchase price would be shown as a long-term investment. Explaining here the top 3 types of long term investments – stocks, bonds and mutual funds whose return is going to remain safe for the next 20 years.


When you invest in stocks, you’re buying a share of ownership in a corporation and become a shareholder. Companies sell shares of stock to raise money for start-up or growth.

There are two types of stock:

  • Common stocks – Shareholders have a percentage of ownership, have the right to vote on issues affecting the company and may or may not receive dividends.
  • Preferred stock – Shareholders are generally entitled to dividends at specified intervals and in predetermined amounts, but they don’t typically have voting rights.
  • Investment returns and risks for both types of stocks vary, depending on factors such as the economy, political scene, the company’s performance and other stock market factors.


When you buy bonds, you lend money to the government or to a company. Bonds are issued for a set period of time during which interest payments are made to the bondholder. The amount of these payments depends on the interest rate established by the issuer of the bond (the government or company) when the bond is issued. This is called a coupon rate, which can be fixed or variable. At the end of the set period of time (called the maturity date), the bond issuer is required to repay the par, or face value, of the bond (the original loan amount).

Bonds are considered a more stable investment compared to stocks because they usually provide a steady flow of income. But because they’re more stable, their long-term return probably will be less when compared to stocks. Bonds, however, can sometimes outperform a stock’s rate of return, depending on the particular stock.

Keep in mind that bonds are subject to a number of investment risks including credit risk, repayment risk and interest rate risk.

Mutual funds

It is a type of investment wherein you join other investors and corporations to form a massive fund which will be handled by an expert/professional who is called fund manager for diversified portfolios of stocks, bonds, securities, money markets and other mutual funds. In MF, you buy shares of the investment company thus that makes you a shareholder and gives you shareholder’s right including voting power and opportunity to receive dividends.

Many people have wrong understanding about Mutual Funds: They think all Mutual Funds invest in Equity Share Market or Mutual Funds are Equity Share Market Related Products and hence “Risky”. fact is that, mutual fund is just but the” Medium” of “Method” of investment .Through this medium of ‘Mutual Funds’ investors can indirectly invest in different ‘Asset Classes’ – Debt Securities. Depending on in what asset a mutual fund invest in –

  • Equity Mutual Fund: If it invests in ‘Equity Shares’
  • Debt Mutual Fund: If it invests in ‘Fixed Interest Bearing Instruments’ or Debt Instruments
  • Gold Mutual Fund: If it invests in ‘Gold’
  • Hybrid (Balanced) Mutual Fund: If it invests in Equity & Debt or Equity, Debt & Gold, or Equity & Gold

Top 10 tax saving investments / Schemes 2015

You slog all day long at the office trying to take home your fairly prize earned money but wait, there are some tax deductions to make, and your heart sinks skipping a beat!! Well don’t worry; as we bring you some awesome investment options that can not only save your money but also give excellent returns.

Public Provident Fund

It scores well on almost all parameters. This small saving scheme has always been a favorite tax-saving tool, but the linking of its interest rate to the bond yield in the secondary market has made it even better. This ensures that the PPF returns are in line with the prevailing market rates. You can get a PPF account opened in post offices, bank branches of SBI and its associate banks and select private banks such as ICICI Bank. PPF carries a term of 15 years but it can be extended for additional 5 years. A loan facility of up to 25% can be availed from the 3rd financial year till the 5th financial year while a withdrawal of up to 50% is allowed from 6th financial year onwards.

Senior Citizen Savings Scheme (SCSS):

 Meant for senior citizens aged 60 years or more, SCSS offers 9.30% per annum. The interest payable quarterly is taxable and subject to TDS if the interest amount crosses Rs. 10,000 in a financial year. It has a maturity period of 5 years which can be extended for a further period of 3 years. The maximum you can invest in SCSS is Rs. 15 lakhs but the exemption u/s. 80C would be limited to Rs. 1 lakh only.

5-year Bank FDs:

A faster life these days makes the investors opt for simpler investments and fixed deposits are the most simple to invest option. Different banks offer different interest rates on their tax-saving FDs and you can visit this link to check out the rates offered. These FDs have a lock-in period of 5 years and the interest is taxable.

5-year NSCs:

National Saving Certificates (NSCs), offered by the post offices, give an interest rate of 8.60% per annum compounded half-yearly. The interest is paid at maturity but it is taxable annually. With these NSCs, the amount invested as well as the interest earned every year qualify for a deduction under section 80C. Post offices do not deduct any tax at source though.

10-year NSCs:

During the last financial year, the government introduced NSCs with a maturity period of 10 years. These certificates currently offer 8.90% per annum compounded half-yearly. Rest of their features are the same as that of 5-year NSCs.

Post Office Time Deposit Scheme:

Post offices also offer tax-saving time deposit with a maturity period of 5 years carrying 8.50% per annum interest rate. The interest is payable annually but compounded quarterly. Also, though the interest paid is taxable but TDS is not deducted by the post offices.

Term Deposit Schemes from Government Companies:

A few government companies or financial institutions like National Housing Bank (NHB), HUDCO, NABARD etc. also offer tax-saving term deposits with a lock-in period of 5 years. The interest payable is taxable and subject to TDS if the interest amount crosses Rs. 5,000 in a financial year. NHB offers 9.25% per annum compounded quarterly to the general investors and 9.85% to the senior citizens. NHB is wholly owned by the RBI and hence the deposits are considered as risk-free. It has also been assigned a rating of ‘FAAA’ by CRISIL.

Equity-linked saving schemes (ELSS)

They have the shortest lock-in period of three years among all the tax-saving options under Section 80C. However, this should not be the most important reason for investing in this avenue. Being equity funds, these schemes can generate good returns for investors over the long term. In the past five years, this category has created wealth for investors with average returns of 17.5 per cent.


The 2010 guidelines have reformed the Ulip, turning it into a more customer-friendly investment. Though a Ulip should not be your first insurance policy, you can consider buying one as an investment that also helps you save tax. Of course, it also offers a life cover, but the stress is on investment, not protection. Don’t buy a Ulip (or any other insurance policy, for that matter) if you are not sure whether you can continue paying the premium for the entire term. If you end it prematurely, be ready to pay surrender charges.

PSB Jan Dhan Yojna Scheme 2014

PRADHAN MANTRI JAN DHAN YOJNA Scheme 2014: Get details On Highlights of the Scheme online. The Hon’ble Prime Minister in his Independence Day speech has  made announcement of  implementation of  financial inclusion plan in two phases.  Phase-I  of  National Mission on Financial Inclusion –Pradhan Mantri Jan Dhan Yojna,   which is expected to be completed by 14.08.2015 proposes the following:-

·         Universal access to banking facilities

·         Providing Basic Banking Accounts.

·         RuPay Debit card with inbuilt accident insurance cover of Rs.1 lakh and

·         Financial Literacy Programme


Salient features of the PMJDY being adopted in our Bank.

·         Scheme to be launched by  Hon’ble PM on 28th August 14 , nationwide.

·         At least 2 accounts from each household from the allotted FI villages to be opened during the campaign.

·         Linking of  lady of the house as head of   household.

·         Providing personalized RuPay debit card to all the account holders.

·         Accidental insurance of Rs.1 lacs for each card holder.

·         Accounts to be opened with zero balance.

·         Linkage of account with UID number , as  all  Government benefits/subsidy to route through this account.

·         Single page simple account opening form designed with inbuilt facility of OD.



Cash@Shop – HDFC Bank Service

If you are tired of searching for an ATM or standing in a queue to withdraw cash, then the Cash@Shop service is perfect for you. You can now use your Debit Card to withdraw cash at select merchant outlets when you shop.

Cash@Shop, just to make life a little simpler!

What are the benefits of Cash@Shop?

Take a look at the benefits of Cash@Shop.

  • Use any domestic Debit Card* to make cash withdrawals at select merchants
  • Maximum withdrawal limit of Rs. 1000 per day
  • Withdraw cash with or without making purchases
  • Pay a nominal fee each time you transact**

* Please check with your Debit Card issuer if you have this facility on your card.

** Check with your debit card issuer for applicable fees on transactions

What is the eligibility criterion to use Cash@Shop?

If you have a Debit Card that has been issued in India then you are eligible for Cash@Shop*.

*Please check with your Debit Card issuer if you have this facility on your card.

Anything important I should know about Cash@Shop?

When you are using the Cash@Shop service, please remember the following:

  • Cash withdrawals at Point of Sale (POS) are only available with domestic Debit Cards.
  • Check with your bank if cash withdrawals through EDC (Electronic Data Capture) machines have been enabled on your card.
  • This facility is available only on HDFC Bank EDC machines.
  • You have to have your card with you at the Point Of Sale (POS) to withdraw cash.
  • Withdrawal charges will vary depending on the issuing bank.
  • The merchant is not entitled to charge you for the transaction.
  • Please sign the charge slip, which has a separate section for cash.
  • Keep your customer copy, in case there is a dispute.

What are the transaction charges to use Cash@shop?

The transaction charges may differ with the bank issuing the debit card. Debit Card holders are requested to check with their respective banks regarding the charges to use this service.

Best Options for Investments, Under Section 80C

Options for Investments



ELSS Funds

Returns: Linked to government bond yield, so will vary every year. 8.7% for 2014-15. Returns: 8.5% for 2014-15 Returns: Market linked (14.2% in past 3 years)
Safety: very safe as it is backed by government Safety: Very Safe Safety: Carry market risk associated with stocks
Liquidity: Low. Locked for 15 years but partial withdrawals allowed after the fifth year. Liquidity: Low. Withdrawals allowed after five years for specific purposes. Liquidity: Locked in for three years, after which full withdrawal permitted.
Taxation: interest and maturity amount completely tax free. Taxation: Interest and corpus tax free, if withdrawn after five years. Taxation: No Tax on withdrawals because long term capital gains are tax free.
Best For: Conservative investors looking for assured returns and tax free corpus. Best For: Salaried individuals saving for retirement. Best For: Investors with higher risk appetite hoping to generate inflation beating returns.
SMART Tips: invest before the 5th of the month so that the investment gets interest for that month as well. SMART Tips: Transfer your EPF account when you change jobs. Dormant accounts stop earning interest after three years. SMART Tips: Invest small amounts at monthly intervals in ELSS funds. SIPs reduce the risk of investing in equities.