Investments
Investment is nothing but a deferred consumption that any person invests today to consume it later. The rate of return on the investment should be greater than inflation. We try to minimize the risk and increase the returns of the investment portfolio with combinations of mutual funds schemes and structured products.
State Guarantee Bonds
State governments in India allocate budgets to run their state expenditure. Sometimes, the state expenditure may get higher than the allocated budget. In other words, the expenditure is more than the revenue.
This situation leads to a fiscal deficit in the state. Therefore, to fund the fiscal deficit requirements, the state government issues State Development Bonds or State Development Loans (SDLs). Every state has a set limit up to which they can issue bonds to borrow.
The structure and nature of state development bonds are very similar to a government bond. In simple words, they pay the coupons either half-yearly or annually and repay the principal amount on the maturity date. Moreover, these instruments are issued for a maturity of 10 years or more. Also, the re-issuances for SDLs are very rare.
PSU Bonds
Public Sector Undertaking Bonds (PSU Bonds) are bonds in which the government shareholding is generally more than 51%. It is a medium and long-term debt instrument issued by public sector companies
Checking the credit rating and nature of bonds is always recommended. Make sure the credit rating, Investment nature, underlying security, and maturity align with your investment needs. PSU Bonds are considered a secure option for investment.
PSU Banks, power sector companies, railways, and other organizations issue PSU bonds as they have 51% of the government shareholding with them. These entities could be held by the central or state governments.
Mutual Funds
You can make your current investment 100X in 25years by investing in mutual funds methodically and in a disciplined manner. Investment in mutual funds carries equity market risk. However, the selection of mutual funds schemes may reduce the risk of the investment portfolio without disturbing the investment goals. We will help you to make an investment portfolio for you.
