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fixed income
fixed income

fixed income

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Unlocking Wealth and Tax Benefits: A Comprehensive Guide to Equity Linked Savings Schemes (ELSS)

Mutual funds have revolutionized the investment landscape by pooling investors’ money into diversified portfolios. One notable member of this financial family is the Equity Linked Saving Scheme (ELSS), a unique mutual fund offering that combines enticing features for investors seeking returns and tax benefits. ELSS allocates a significant 80% of its corpus to equity, promising substantial returns, while the remaining 20% is devoted to fixed income instruments, ensuring capital protection and risk mitigation.

Among its attractive attributes is the tax deduction advantage. ELSS investors enjoy tax exemption up to Rs 1,50,000 under Section 80C of the Income Tax Act, 1961, leading to substantial savings in taxable income. This deduction, when combined with other tax benefits, can lead to significant annual tax savings of up to Rs 46,800, providing a strong incentive for investors to participate.

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3 Checkpoints to Consider Before NCD Trading

Investing in non-convertible debentures (NCDs) requires careful consideration and analysis. Understanding the credit rating, coupon rate, and financial statements of the issuing company are crucial checkpoints to assess the risk and potential returns of NCDs. In our comprehensive guide, we explore these checkpoints in detail, providing valuable insights to help you make informed decisions when trading NCDs. Whether you are a seasoned investor or just starting out, this guide will equip you with the knowledge you need to navigate the world of NCD trading.

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Unlock the Benefits of Laddered Investments for Higher Yields and Liquidity

The laddered investment approach involves dividing your investment portfolio into portions and investing in instruments with varying maturity dates. This strategy can help reduce the impact of interest rate fluctuations on your portfolio while potentially earning higher yields. By diversifying your investments with staggered maturity dates, you can create a consistent stream of cash flows and potentially earn higher returns. As each bond matures, you can reinvest the principal into a new bond with the longest maturity date available at that time. This allows you to benefit from the higher interest rates of longer-term investments while still having some liquidity. However, it’s important to carefully consider your risk tolerance and investment goals before adopting this strategy.

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Why Fixed Income is a Key Component of Retirement Planning?

Retirement planning is a crucial aspect of financial planning, and fixed income investments can play a significant role in helping you achieve your retirement goals. One of the key benefits of fixed income investments is the predictability of income. These investments, such as bonds, typically pay a fixed interest rate, and the principal is returned at maturity. This certainty can help you plan for and manage your expenses during retirement.

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Why Diversifying with Fixed Income is Essential for a Strong Investment Portfolio

Diversifying a portfolio is essential for any investor looking to maximize returns while minimizing risk. An important aspect of diversifying is to include fixed income investments. Fixed income investments provide a steady stream of income and can be a great way to balance out more volatile investments in the equity market.