These schemes can beat inflation.
Due to increasing volatility in the market, the demand for debt instruments is increasing. Investors are increasing the weightage of debt schemes in their portfolio, due to which their portfolio remains balanced and risk is also reduced.
At present, inflation is at an eight-year high. Inflation in April (inflation) rate was close to eight per cent. In such a situation, investors are not getting anything on a net basis on most of the returns. If an investor wants to return on net basis on his investment, then his annual return must be more than 8 percent. Due to increased volatility in the market debt instruments ,Debt Schemes) is increasing in demand. Investors are increasing the weightage of debt schemes in their portfolio, due to which their portfolio remains balanced and risk is also reduced. RBI had increased the repo rate and it is believed that the repo rate will be increased again in June. Banks are also increasing the interest rate on your deposits, but a return of at least 8 percent is necessary to beat inflation.
Shriram Transport Finance Company Recurring Deposit (STFC RD ) but is giving an annual return of up to 8.5 percent. Shriram Transport Recurring Deposit has been rated FAAA/Stable by CRISIL. It is good from investment point of view and also capable of beating inflation on net basis. Icra has given a stable rating of MAA+ for this RD. The company is offering an interest rate of 7.03 percent on maturity of 12 months, 7.12 percent for 24 months, 8.18 percent for 36 months and 8.34 percent for 48 months. Returns of 8.5 per cent are being given on 60 months recurring deposit. The minimum deposit can be Rs 500 per instalment.
Tamil Nadu Power Finance FD
Fixed Deposit of Tamil Nadu Power Finance and Infrastructure Development Corporation (TNPFC FD) is also a great option. This is a scheme issued by a government company, due to which the risk is very less. The returns on non-cumulative fixed deposits for 2-5 years range from 7.25% to 8%. The interest rate is 7.25 percent for 24 months, 7.75 percent for 36 months, 7.75 percent for 48 months and 8 percent for 60 months fixed deposits. Senior citizens will get an additional 0.50 percent benefit in the interest rate.
Tamil Nadu Transport Development FD
Tamil Nadu Transport Development Finance Corporation Limited Fixed Deposit (TDFC FD) is also a subsidiary company of the Government of Tamil Nadu, on whose behalf the Fixed Deposit is issued. This FD investment has two options – period interest payment scheme called PIPS and the other money multiplier scheme called MMS. At least 50 thousand rupees can be invested under MMS. Interest is calculated on a quarterly basis, but payment is made on maturity. Under PIPS scheme, at least 50 thousand will have to be invested. The interest rate ranges from 7 percent to 8 percent.