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SAFE
INVESTMENT
HAVENS OF
INDIA 2nd
Edition
Build Wealth Safely!!!
Anand Vijayakumar
Copyright 2015 Anands Blog. All Rights Reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted, in any form or in any means by electronic, mechanical,
photocopying, recording or otherwise without the explicit prior written permission of the Author.
LEGAL DISCLAIMER: The Author is an Independent Blogger and Financial Advisor. Use of the information contained in
this book is at ones own risk. This is not an offer to sell or solicitation to buy any investment products. All stock market
investments carry an inherent risk of loss and the author will not be liable for any losses incurred out of the investment(s)
made by the reader. Information contained herein does not constitute a personal recommendation or take into account the
particular investment objectives, financial situation or needs of individual investors. All content and information provided in
this book is on an As Is basis by the Author. Information in this book is believed to be reliable but the Author does not
warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or
implied. The author may hold investments in any of the products discussed here however the author has NO Vested Interest
in recommending any of the products outlined in this book. The Performance of the products quoted in this book may or may
not be sustained in future. All rate of returns used in calculations are for indicative purposes only and do not guarantee
future results. The actual returns your portfolio will gain will be based on multiple factors like your investment choice, market
performance etc.
Page 1
Introduction .................................................................................................................................................. 7
Before We Begin ........................................................................................................................................... 8
So, what is a Safe Investment? ..................................................................................................................... 9
Types of Safe Investments ............................................................................................................................ 9
Type I Fixed One Time Investment Fixed Term Fixed Maturity ..................................................... 10
Type II Fixed Regular Investment Fixed Term Fixed Maturity ........................................................ 10
Public Provident Fund PPF ....................................................................................................................... 11
What is Public Provident Fund? .............................................................................................................. 11
Why PPF Was Started ............................................................................................................................. 11
How the PPF Account works ................................................................................................................... 11
How Much Can I Invest in PPF Each Year? .............................................................................................. 12
Things You Need to Know about PPF ...................................................................................................... 12
What Makes PPF Unique ........................................................................................................................ 13
Opening and Operating a PPF Account ................................................................................................... 13
Interest Calculation on PPF Investments ................................................................................................ 13
Historical PPF Interest Rates ................................................................................................................... 14
Handling PPF Maturity ............................................................................................................................ 14
Option 1: Withdraw the Maturity Amount ......................................................................................... 14
Option 2: Extend the Deposit Duration by an Extra 5 Years and Continue to Contribute ................. 15
Option 3: Extend the Deposit Duration by an Extra 5 years with No Additional Contribution .......... 15
Withdrawals from the PPF Account ........................................................................................................ 15
Loans from your PPF Account ................................................................................................................. 16
A Simple Calculation of How your PPF Money will Grow: ...................................................................... 16
Kisan Vikas Patra KVP ............................................................................................................................... 18
What is Kisan Vikas Patra? ...................................................................................................................... 18
How Kisan Vikas Patra works .................................................................................................................. 18
How much can I Invest in KVP each year? .............................................................................................. 18
Who can Invest in KVP? .......................................................................................................................... 18
How to Invest in KVP? ............................................................................................................................. 19
2014 Anands Blog. All Rights Reserved.
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In this edition, the new Sukanya Samriddhi Scheme has been added to the list of Safe Investments.
Best Wishes
Anand.
Page 7
Did you know that by investing 2 lakhs each year into Safe Investments that earn
you 8% interest per year, you will end up with 98 lakhs at the end of 20 years? If the
interest earned is 8.5% the amount is 104 lakhs and with 9% it will be 111 lakhs.
Interesting isnt it?
Page 8
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The Investments that we will cover in this book that would qualify as Type 1 are:
a.
b.
c.
d.
e.
f.
Some of these investments also have regular/monthly interest payout options which can
be useful for people who expect a steady influx of cash each month Ex: Pensioners and
Senior Citizens
The Investments that we will cover in this book that would qualify as Type II are:
a. Public Provident Fund (PPF)
b. Bank Recurring Deposits (RD)
c. Post Office Recurring Deposits (PORD)
Page 10
As the name suggests, this scheme was open to the Public with no
limitations. A PPF account can be opened by anyone and
contributions can be made as per their preferences.
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This option is straight forward and doesnt require much explanation. You can just request for your
Investment corpus to be returned to you and you will get your amount along with Interest. Simple
Remember: If you choose to withdraw the money, the amount you receive is
Exempt from Tax.
2014 Anands Blog. All Rights Reserved.
Page 14
It is not Mandatory to close your PPF Account after 15 years. You can extend the deposit duration by a
Multiple of 5 for as many times as you want and continue to deposit ever year like what you did
before.
Remember: If you decide to continue the contributions to your PPF account, you
need to submit the request within 1 year from date of Maturity.
Option 3: Extend the Deposit Duration by an Extra 5 years with No Additional Contribution
In case you dont need the PPF Money right now but at the same time, are not interested in making
additional contributions any more, you can select this option. You can just choose to extend your
deposit duration by a Multiple of 5 for as many times as you want and just let the corpus earn Interest
for you.
Remember: If you decide to continue the account, you need to submit the request
within 1 year from date of Maturity.
Page 15