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The concept of guaranteed Internal Rate of Return (IRR) is based on the Modified Internal Rate of Return (MIRR) methodology, which calculates the rate of return on an investment considering the time value of money.
Structured Debt Real Estate investments can provide a monthly income through alternative investment platforms, but they typically carry higher risk due to the underlying asset's market fluctuations.
ELSS funds are equity-dominated and seek to provide capital appreciation over time, making them a high-risk investment option for conservative investors.
Sukanya Samriddhi Yojana is a government-backed saving scheme that offers a fixed interest rate, but it has a lock-in period of 5 years and allows premature withdrawal with a penalty.
Public Provident Fund (PPF) investments are tax-free and have a minimum investment amount of Rs 500, but the interest rate is currently 7.9% per annum.
Sovereign Gold Bonds are a government-backed security that can provide a fixed return in the form of interest, but the price of gold can fluctuate due to market forces.
Tax benefits are available for investments in ELSS funds and PPF, which can reduce the tax liability, but it's essential to consult a tax professional for personalized advice.
The concept of "compounding" in finance refers to the process of earning interest on both the principal amount and accrued interest, leading to exponential growth over time.
The risk-appetite of an investor plays a significant role in determining the investment strategy, and it's essential to assess one's risk tolerance before investing.
A 4:1 ratio of equity-based investments to fixed-income instruments can provide a balance between growth and income, but this ratio may vary depending on individual circumstances.
Corporate Fixed Deposits can offer higher interest rates than traditional bank FDs, but they often come with higher risks due to the entity's creditworthiness.
Government-backed schemes like the Post Office Monthly Income Scheme provide a guaranteed interest rate, but the returns are taxable and subject to fluctuations in interest rates.