Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
The first step towards investing in Indian market is to evaluate individual requirements for cash, competence to undertake involved risks and the amount of returns that the investor is expecting. Below are Top Few Investment Options in India which assure safe and satisfactory returns.
8. Investments in Equity
Private equity is a type of asset consisting of equity securities in private companies that are not publicly traded on stock exchange. A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor. Private Equity is expanding at a fast pace. India acquired US $13.5 billion in 2008 under equity shares and featured among the top 7 nations in the world. In 2010, the total equity
investment is predicted to increase upto USD 20 billion. Indian equities promise satisfactory returns and have more than 365 equity investments firms functioning under it. As ranked by the PEI 300, the 10 largest private equity firms in the world are: 1.TPG Capital 2.Goldman Sachs Principal Investment Area 3.The Carlyle Group 4.Kohlberg Kravis Roberts 5.The Blackstone Group 6.Apollo Global Management 7.Bain Capital 8.CVC Capital Partners 9.First Reserve Corporation 10.Hellman & Friedman
may carry. As a result of the advantage a buyer gets from the ability to convert, convertible bonds typically have lower interest rates than non-convertible corporate bonds
Non Convertible Debenture
(NCD in short) is a low to moderate risk debt instrument issued by companies, for a fixed maturity period at a fixed rate of interest. NCDs cannot be converted into equity of the issuing company unlike convertible debentures which can be converted into equity of the issuing company at a future date.
Debentures versus Bonds
Technically speaking, bonds and debentures dont have much of a difference. Fixed income instrument issued by the Government and Government run institutions are known as bonds. The ones issued by companies are called debentures.
Debentures versus Fixed Deposits
Fixed deposits, whether company or bank, are non-transferable and thus not influenced by changes in interest rates. They cannot be sold unlike NCDs which could be listed on a stock exchange and thus be sold. Where NCDs can be secured, corporate FDs are unsecured and bank FDs are secured up to Rs. 1Lakh.
Key Features and Benefits of NCD Issuance and trading:
NCDs are issued and traded in demat form. Returns: NCDs are ideal for conservative investors who seek higher returns but are risk averse. Returns are generally in the range of 11 to 12%, depending upon the company. Safety: NCDs are relatively safer than company FDs. They possess low to moderate amounts of risk depending upon the company. NCDs could be secured or unsecured. Secured NCDs are secured against the assets of the company. In other words, in case of a default, these investors will be paid back first, by selling some of the assets of the company. In case of unsecured NCDs, there is no security for repayment of principal or interest. Liquidity: Investors could liquidate NCDs by either selling it on the stock exchange or by exercising the Call or Put Option. Tax Implication: There is no Tax Deducted at Source (TDS) on NCD investments. However for NRI investors, there is a TDS deduction. The interest income of an NCD is taxed at normal rates and is included under Income from other sources. They are also subject to capital gains tax when sold at the stock exchange. 11. Post office Post office monthly income Scheme is specially made for the purpose of providing regular pension to the investors. It offers 8% per annum, paid on monthly basis. Maximum limit for investment is Rs. 4.5 lakh and maturity period is 6 years. It can be prematurely enchased after 1 year but before 3 years at the discount of 2% and after 3 years at the discount of 1%. The option is not available for NRIs Investment.
National Savings Certificate is available in denominations of 100, 500, 1000 and 10000. This means that, an investment in NSC India can be done even with Rs. 100/-. There is no upper Limit to invest in National Savings Certificate. This means you can invest in NSC India any amount of money as there is no ceiling limit for investment. The maturity period of NSC India is 6 years. The Rate of Interest on NSC India is 8% p.a. cumulated half yearly. Pre closure is available for National Savings Certificate after the completion of 3 years. On payment of nominal fees, National Savings Certificate can be transferred to any person. Transfer from one branch to another is also possible.
National Saving Certificates in India are Highly Secured Investment, since it is secured by Govt. of India. National Savings Certificate has a guaranteed rate of return of 8% p.a. (cumulated half yearly) National Saving Certificates in India are easily available from all post offices, in denominations of Rs. 100/The principal amount which is invested in NSC India is eligible for tax benefit under 80C Interest which accrues all through the life of National Savings Certificate will be deemed to be re invested, and therefore Accrued interest on NSC will also be considered as invested in National Savings Certificate and therefore the interest accrued will be eligible for benefit under 80C.
The interest received at the time of maturity from National Saving Certificates in India will not be subjected to TDS. NSC India Deposits will not be considered as assets U/s 2 (ea) of Wealth Tax Act 1957.
If you satisfy the above two conditions, then you may approach your nearest Indian Post Office and make a requisition for the same. Investment in NSC India can be made in the name of Single Holder, Joint name or in the name of Minor Child.