Professional Documents
Culture Documents
On
INVESTMENT ALTERNATIVES”
(Assistant Professor)
M.B.A (FINAL)
SUBMITTED TO
TECHNOLOGY EDUCA
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KURUKSHETRA UNIVERSITY, KURUKSHETRA
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DECLARATION
ALTERNATIVES’ is my original work and same has not been submitted to any of the
otherwise.
(Aashish Kumar)
MBA (General)
4th Semester
Roll No.
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ACKNOWLEDGEMENT
There are people who simply by being there influence and inspire me to do thing. I
am grateful to Dr.R.K Kohli, Director, of our institute for creating a conducive
environment in the department for a purposeful education.
I am grateful to Dr. Vipul Jain, H.O.D, Department of Management Sciences for his
encouragement. I acknowledge my gratitude and indebtedness to my internal project
guide Ms. Nutan Bajaj, faculty of our institute who spared her precious time in
guiding me and for making valuable suggestions in compiling this project report.
I express my gratitude towards all those people who have helped me directly or
indirectly in completing this report.
(Aashish Kumar)
4th sem
ROLL NO.
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PREFACE
The professional training is the internal part of a M.B.A program. It helps the student understand practical
aspects of Business Management in a better way as a part of my M.B.A. program at Technology
Education & Research Integrated Institute, Kurukshetra
Perception is the process, by which an individual selects, organizes and interprets information inputs to
create a meaningful picture of the world around as”
To be a Master of Business Administration student is a matter of pride because we are in a field, which
help us to develop from a normal human being into a disciplined, and dedicated professional. One has to be
a good learner to sharper knowledge in the particular field to achieve and attain the desired goals and
heights.
I analysis the investor’s perception regarding different-2 investment alternatives available in the market. I
learnt lot of new things from this project, which could never have been learnt from theory classes. If any
findings & recommendations go in any way to prove some new ground in helping the commodity future
sector, I shall deem my efforts have duly served the purpose. In the forthcoming pages an attempt has been
made to present report covering different aspects of my project.
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SL no Topic Page No
Declaration
Acknowledgement
Preface
Executive Summary
1 Conceptual Framework
2 Literature Review
3 Research Methodology
6 Conclusion
7 Bibliography
8 Annexure
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Particulars Page No.
Chart No.
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EXECUTIVE SUMMARY
An investor before making investment searches for various investment alternatives in the market. These are
as follows: Financial securities: These investment instruments are freely tradable and negotiable. These
would include equity shares, preference shares, convertible debentures, non-convertible debentures, public
sector bonds, savings certificates, gilt-edged securities and money market securities. Non-securitized
financial securities: These investment instruments are not tradable, transferable nor negotiable. And
would include bank deposits, post office deposits, company fixed deposits, provident fund schemes,
national savings schemes and life insurance. Mutual fund schemes: If an investor does not directly want
to invest in the markets, he/she could buy units/shares in a mutual fund scheme. These schemes are mainly
growth (or equity) oriented, income (or debt) oriented or balanced (i.e. both growth and debt) schemes.
Real assets: Real assets are physical investments, which would include real estate, gold & silver, precious
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This project report focuses on the study of these investment alternatives and the investor’s perception
towards various alternatives. I have conducted my research in kurukshetra and I have found that the
investors consider various factors while making investment like risk, return, liquidity etc. There should be
rational thinking so that the investor is able to know that at what point of time they need capital
appreciation instead of reducing the risk and when they need return instead of liquidity.
The preferred time span of investment by the investors depends upon the need of the investor that whether
they wants to have early and high returns or wants to have stable returns, most probably the long time span
is suitable because the returns are high and safety is also there.
CHAPTER -1
The cost of living is simply what it costs to buy the goods and services you need to live. Inflation causes
money to lose value because it will not buy the same amount of a good or service in the future as it does
now or did in the past. The sooner one starts investing the better. By investing early you allow your
investments more time to grow, whereby the concept of compounding increases your income, by
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accumulating the principal and the interest or dividend earned on it, year after year. The three golden rules
for all investors are:
• Invest early
• Invest regularly
This project will also help to understand the investors facet before investing in any of the investment tools
and thus to scrutinize the important aspects for the investors before investing that further helped in
analyzing the relation between the features of the products and the investors’ requirements
Characteristics of Investment:
The following are the main characteristics features of investments are:
1. Return :- All investments are characterized by the expectation of a return. In fact, investments are
made with the primary objective of deriving a return. The return may be received in the form of yield plus
capital appreciation. The difference between the sale price & the purchase price is capital appreciation. The
dividend or interest received from the investment is the yield. Different types of investments promise
different rates of return. The return from an investment depends upon the nature of investment, the maturity
period & a host of other factors.
2 .Risk :- Risk is inherent in any investment. The risk may relate to loss of capital, delay in repayment of
capital, nonpayment of interest, or variability of returns. While some investments like government
securities & bank deposits are almost risk less, others are more risky. The risk of an investment depends on
the following factors.
1. The longer the maturity period, the longer is the risk.
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2. The lower the credit worthiness of the borrower, the higher is the risk .
3. The risk varies with the nature of investment. Investments in ownership securities like equity share
carry higher risk compared to investments in debt instrument like debentures & bonds.
3. Safety :- The safety of an investment implies the certainty of return of capital without loss of money or
time. Safety is another features which an investors desire for his investments. Every investor expects to get
back his capital on maturity without loss & without delay.
4. Liquidity :- An investment, which is easily saleable, or marketable without loss of money & without
loss of time is said to possess liquidity. Some investments like company deposits, bank deposits, P.O.
deposits, NSC, NSS etc. are not marketable. Some investment instrument like preference shares &
debentures are marketable, but there are no buyers in many cases & hence their liquidity is negligible.
Equity shares of companies listed on stock exchanges are easily marketable through the stock exchanges.
An investor generally prefers liquidity for his investment, safety of his funds, a good
return with minimum risk or minimization of risk & maximization of return.
Objectives of Investment
The purpose of the study was to determine the saving behavior and investment preferences of customers.
Customer perception will provide a way to accurately measure how the customers think about the products
and services provided by the company. Today’s trying economic conditions have forced difficult decisions
for companies. Most are making conservative decisions that reflect a survival mode in the business
operations. During these difficult times, understanding what customers on an ongoing basis is critical for
survival. Executives need a 3rd party understanding on where customer loyalties stand. More than ever
management needs ongoing feedback from the customers, partners and employees in order to continue to
innovate and grow. The main objective of the project is to find out the needs of current and future
customers. For this report ,customer perception and awareness level will be measured in many important
areas like:-
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• To find out the saving habits of the different customers and the amount they invest in various
financial instruments.
• In which type of financial instrument they like to invest.
• How long they prefer to keep their money invested.
• What is the return that they expect from the investment.
• What are the various factors that they consider before investing.
• To find out the risk profile of the investor.
• To give a recommendation to the investors that where they should invest.
• To give a suggestion to my company where our fund lacks in the market & how it should be
rectified.
High Net worth Individuals [HNIs] or wealthy investors are proactive in portfolio management, risk
management, consolidation financial assets and use of diversification strategies as actively as large
institutions. HNIs are proactive in identifying new investment options and take inputs from professional
advisors in volatile market conditions.
HNIs are dynamic in modifying their asset allocation and were among the first investors to move from
equities to fixed income during 2009-2010 period of downturn in equity markets. They shifted back to
equities when they identified favorable market trends.
PRINCIPLES OF Investment
Five basic principles serve as the foundation for the investment approach. They are as follows:
There is substantive empirical evidence to suggest that equities provide the maximum risk adjusted
returns over the long term. In an attempt to take full advantage of this phenomenon, investments would
be made with a long term perspective.
The benchmark for determining relative attractiveness of stocks would be the intrinsic value of the
business. The Investment Manager would endeavor to purchase stocks that represent a discount to this
value, in an effort to preserve capital and generate superior growth.
The investment portfolio would be regularly monitored to understand the impact of changes in business
and economic trend as well as investor sentiment. While short-term market volatility would affect
valuations of the portfolio, this is not expected to influence the decision to own fundamentally strong
companies.
The decision to sell a holding would be based on either the anticipated price appreciation being
achieved or being no longer possible due to a change in fundamental factors affecting the company or
the market in which it competes, or due to the availability of an alternative that, in the view of the
Investment Manager, offers superior returns.
In order to implement the investment approach effectively, it would be important to periodically meet
the management face to face. This would provide an understanding of their broad vision and commitment
to the long-term business objectives. These meetings would also be useful in assessing key determinants of
management quality such as orientation to minority shareholders, ability to cope with adversity and
approach to allocating surplus cash flows
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Wealthy investors being aware of the emerging investment opportunities use sophisticated investment
strategies such as:-
• Leveraging on the professional advisors’ capability to analyse market trends and make appropriate
investments
• Searching for innovative products to enhance value
• Diversifying across various types of assets
• Investing across emerging geographies
• Consolidating financial information and assets
The strategies and characteristics of wealthy investors has led to financial institutions innovating and
expanding their product range to meet the growing demands of such investors.
A financial advisor should keep in mind the following special needs and expectations of the wealthy
clients:-
• Demand broader range of services and skills: Wealthy clients not only are on the look out for
multiple investment avenues, unlike other clients, but are also ready to face the risks associated with
newer products.
• Net worth and goals need to be matched and assets need to be planned tax effectively: Since
wealthy investors have surplus funds that can be passed on to the next generations and also come
into the high tax paying category, investors need to advice them on the best methods to transfer
their assets after death as well as on the best tax saving investments.
• Estate planning and tax planning: In-depth knowledge about tools of estate planning such as wills,
trusts, and power of attorney is necessary. It is also important to know the succession rules and tax
rules to do effective tax planning resulting in minimal/no tax on transfer of assets.
• Educate the client: Educating the client on various and different types of investment avenues that
will suit him the best will prove very beneficial for the financial advisor. Wealthy clients, especially
those who are self made, may assume that if they can make wealth in one industry they can manage
their own portfolio as well. In such cases it is best to educate the client about the best investment
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options rather than trying to push a product; because if one is trying to push a product, the client is
unlikely to get interested since he/she will be having enough people chasing him/her for investment
Savings Bank Accounts are meant to promote the habit of saving among the citizens while allowing them
to use their funds when required. The main advantage of Savings Bank Account is its high liquidity and
safety. On top of that Savings Bank Account earn moderate interest too. The rate of interest is decided and
periodically reviewed by the Government of India. Presently, the rate of interest is 3.5% compounded half
yearly.
Savings Bank Account can be opened in the name of an individual or in joint names of the depositors.
Savings Bank Accounts can also be opened and operated by the minors provided they have completed ten
years of age. Accounts by Hindu Undivided Families (HUF) not engaged in any trading or business
activity, can be opened in the name of the Karta of the HUF.
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The minimum balance to be maintained in an ordinary savings bank account varies from bank to bank. It is
less in case of public sector banks and comparatively higher in case of private banks. In most of the public
sector banks, minimum balance to be maintained is Rs. 100. In accounts where cheque books are issued, a
minimum balance of Rs. 500/- has to be maintained. For Pension Savings Accounts, minimum balance to
be maintained is Rs. 5/- without cheque facility and Rs. 250/- with cheque facility.
Bank savings accounts are a critical part of everybody's financial picture. If you need a safe place to keep
money, a bank savings account is often a good choice. Here’s a quick review of what savings accounts are
and why you might want to have a bank savings account.
Characteristics
The minimum amount to open an account in a nationalized bank is Rs 100. If cheque books are also issued,
the minimum balance of Rs 500 has to be maintained. However in some private or foreign bank the
minimum balance is Rs 500 or more and can be up Rs. 10,000. One cheque book is issued to a customer at
a time.
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A Savings account can be opened either individually or jointly with another individual. In a joint account
only the sign of one account holder is needed to write a cheque. But at the time of closing an account, the
sign of the both the account holders are needed.
Advantages
It's much safer to keep your money at a bank than to keep a large amount of cash in your home. Bank
deposits are fairly safe because banks are subject to control of the Reserve Bank of India with regard to
several policy and operational parameters. The federal Government insures your money. Saving Bank
account does not have any fixed period for deposit. The depositor can take money from his account by
writing a cheque to somebody else or submitting a cheque directly. Now most of the banks offer various
facilities such as ATM card, credit card etc. Through debit/ATM card one can take money from any of the
ATM centres of the particular bank which will be open 24 hours a day. Through credit card one can avail
shopping facilities from any shop which accept the credit card. And many of the banks also give internet
banking facility through with one do the transactions like withdrawals, deposits, statement of account etc.
Return
The interest rate of savings bank account in India varies between 2.5% and 4%. In Savings Bank account,
bank follows the simple interest method. The rate of interest may change from time to time according to
the rules of Reserve Bank of India. One can withdraw his/her money by submitting a cheque in the bank
and details of the account, i.e the Money deposited, withdrawn along with the dates and the balance, is
recorded in a passbook.
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Tax Benefit
No tax benifit
2).FIXED DEPOSIT
A fixed deposit is meant for those investors who want to deposit a lump sum of money for a fixed period;
say for a minimum period of 15 days to five years and above, thereby earning a higher rate of interest in
return. Investor gets a lump sum (principal + interest) at the maturity of the deposit.
Bank fixed deposits are one of the most common savings scheme open to an average investor. Fixed
deposits also give a higher rate of interest than a savings bank account. The facilities vary from bank to
bank. Some of the facilities offered by banks are overdraft (loan) facility on the amount deposited,
premature withdrawal before maturity period (which involves a loss of interest) etc. Bank deposits are
fairly safer because banks are subject to control of the Reserve Bank of India.
CHARACTERISTICS
Bank deposits are fairly safe because banks are subject to control of the Reserve Bank of India (RBI) with
regard to several policy and operational parameters. The banks are free to offer varying interests in fixed
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deposits of different maturities. Interest is compounded once a quarter, leading to a somewhat higher
effective rate.
• The minimum deposit amount varies with each bank. It can range from as low as Rs. 100 to an
unlimited amount with some banks. Deposits can be made in multiples of Rs. 100/-.
• Before opening a FD account, try to check the rates of interest for different banks for different
periods. It is advisable to keep the amount in five or ten small deposits instead of making one big
deposit. In case of any premature withdrawal of partial amount, then only one or two deposit need
be prematurely encashed. The loss sustained in interest will, thus, be less than if one big deposit
were to be encashed. Check deposit receipts carefully to see that all particulars have been properly
and accurately filled in. The thing to consider before investing in an FD is the rate of interest and
the inflation rate. A high inflation rate can simply chip away your real returns.
• Also known as term deposits, a fixed deposit account is an arrangement between a banking
institution and its client to deposit a certain amount of money for an agreed period of time. The
money deposited cannot be withdrawn before the expiry of the period that the client enters with the
bank to accept his deposit. In return, the depositor will earn interest and the principal amount will
be refunded at the end of the agreed period.
• There are many advantages and disadvantages of this type of account. The interest percentage is
high when compared with other deposits such as saving bank account and current Bank account.
This makes it a better investment when compared to other bank accounts such as savings accounts.
Further, like every other asset, current account deposits increase your net worth and in case of need,
you can use it as collateral to acquire debt financing such as a loan.
• Among the notable disadvantages is that you cannot withdraw the deposited money not until at the
expiry of the agreed period of time. This is the even when a very pressing need arises which makes
it inflexible.
• Money saved in fixed deposit account is mostly affected by inflation savings. If this is the case then
most depositors tend to lose because inflation is a common phenomenon in everyday life. For
instance, if you are entitled to 10% interest rate and inflation rate moves to 15%, you are losing
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money which would not be the case when you invest your money is other investment tools and
channels..
• If you opt for an early withdrawal, you may be penalized which may lead to lose of money. You
will have no alternative other than to forfeit up to your six months deposits which are a large sum of
money. While many depositors would not want to forfeit their earnings, many will prefer to leave
the money earn interest until it reaches its maturity period. You may then be forced to seek for
alternative financing and yet you have your cash in the form of frozen investments.
• Your locked finances may make you miss an opportunity to invest because your cash savings are
tied up. Take for example a one off investment opportunity that comes your way which may call for
your urgent attention to grab it, your financial ability will be completely watered down and such
situations will necessitate you to borrow using the deposit as collateral. This will make you incur
unnecessary borrowing costs such as insurance charges, legal costs and insurance which can be
avoided could by having more liquid deposits.
Returns
The rate of interest for Bank Fixed Deposits varies between 4 and 11 per cent, depending on the maturity
period (duration) of the FD and the amount invested. Interest rate also varies between each bank. A Bank
FD does not provide regular interest income, but a lump-sum amount on its maturity. Some banks have
facility to pay interest every quarter or every month, but the interest paid may be at a discounted rate in
case of monthly interest. The Interest payable on Fixed Deposit can also be transferred to Savings Bank or
Current account of the customer. The deposit period can vary from 15, 30 or 45 days to 3, 6 months, 1 year,
1.5 years to 10 years.
TAX BENEFIT
Rates, got a boost when the Indian government announced in 2006 that, bank fixed deposits booked by an
individual/HUF for 5 years and up to Rs. One Lac or Rs. 100,00/- will be eligible for exemption. This
exemption would be under section 80C of the income tax act 1961, provided the investor makes necessary
declarations. This is the same section where we take exemption for life insurance policies, Mutual Funds,
etc. The fixed deposits which were giving interest rates up to 14% or more a decade back have recently
slump to around 10%.
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3).SHARES AND SECURITIES
Shares are the best investment available over a long period of time. The growth of share prices comfortably
out-paces inflation most years because the best share prices represent the growth in earnings of the best
companies. Although the stock market is seen as "high risk" this depends very much on timing and the sort
of shares you invest in. It is possible to invest in shares with very little risk if you are willing to put in a
great deal of effort in learning the art of investment and doing sample research.
Shares have acquired a high-risk reputation because the majority of people only participate in the stock
market during bull markets, buying at or near historic high prices in the belief that past returns may by a
good indicator of future results. Those that buy just before a crash do not appreciate share valuations and
upside potential v/s downside risk. In fact such considerations actually bore them and many newcomers
choose to trade shares in a highly speculative fashion, making the stock market into little more than a
casino. The rewards are great, but the penalty for laziness is also great. Those that buy on "hot tips" and
rely on the opinions of others, without any knowledge of what they are doing are often those who suffer the
greatest loss.
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A "share" is nothing more, and nothing less than a partial ownership of a business. If you look at shares
investment as the partial purchase of businesses, you are already half way to becoming a successful
investor (the other half is to get some idea of what a business is worth, economically, and hence to be able
to value a share). If you think of shares as part ownership of businesses you have a substantial advantage
over those who think of them only as abstract pieces of paper with a randomly fluctuating price tag.
Direct share investment is not suitable for everyone, many simply do not have the time or the inclination to
research a portfolio adequately, and will be exposed to the greatest dangers when they do take the plunge
and buy something. Managed funds are available that give returns roughly in line with market averages (if
you take into account tax and trading expenses) and these are by far a superior investment for those that do
not wish to make investment their profession. Shares, as a whole, are not highly speculative investments
with a low probability of success. The chances of making money in shares over all but the shortest time
frames are excellent, however you need more than just money and a desire to succeed in order to invest
successfully. No one should be afraid of the stock market, it does not crash without reason at any random
time. If you choose to ignore stocks out of fear of a market downturn, you ignore the best investment that
there is.
• A vote at annual meetings and receive regular financial statements of the company.
• An opportunity to share in the profit of the company, capital gains (losses) and dividends because
buying common stock represents a decision to give up some measure of safety in favor of
prospects for greater return. If the company does poorly, some or all of the investment of common
share holder can be lost.
• common share holders also can claim on the company's assets, in case of dissolution.
• Sometimes common shareholders are offered privileges to buy additional shares directly from the
company, often bellowing market price without paying commission and the rights of either
exercising them to buy more shares or of selling them on the market. This right usually is expired
in 3 weeks.
• The company might also issue common share with warrants to attract new buyers. Warrants allow
the owner to buy shares of the issuing company at a set price, usually below the going price rate
within a specified time period and they can be may be detached and sold separately.
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• Common may be split by the company by exchanging each share for several shares.
• Common stock has the potential for delivering very large gains, unlike bonds, Certificates of
Deposit, or some other alternatives. Annual returns-on-investment (ROIs) of over 100% have
occurred on a somewhat regular basis.
• The potential loss from stock purchased with cash is limited to the total amount of the initial
investment. This is considerably better than that of some leveraged transactions, where the
maximum loss can well exceed the total of the funds invested.
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• Stocks offer limited legal liability. Passive stockholders (those who take no active part in the
running of the company) are protected against any liability stemming from the company’s actions
beyond their financial investment in the company.
• Most stocks are very liquid; in other words, they can be bought and sold quickly at a fair price.
• Although past performance is not a guarantee of future performance, stocks have historically
offered very high returns in relation to other investments.
•
• Stocks offer two ways for their owners to benefit, by capital gains and with dividends. As
previously stated, each share of stock represents partial ownership in a company. If the company
becomes more valuable, so will the ownership interest represented by each share of stock. This
appreciation of the stock’s value is known as a capital gain. In addition, if the company earns more
profits than it needs to support its maintenance and growth, it may elect to distribute the excess to
its owners, the shareholders. The periodic distributions of profits are called dividend payments.
• Since common stock represents ownership of a business, stockholders are the last to get paid, like
all other owners. A company must first pay its employees, suppliers, creditors, maintain its facilities
and pay its taxes. Any money left can then be distributed among its owners.
• While shareholders are company owners, they do not enjoy all of the rights and privileges that the
owners of privately held companies do. For example, they cannot normally walk in and demand to
review in detail the company’s books.
• Investors in a company may not know all that there is to know about the company. This limited
information can sometimes cause investment decision-making to be difficult.
• Stock prices tend to be volatile. Prices can be erratic, rising and declining quickly. Such declines
often cause investors to panic and sell, which actually only serves to lock in their losses.
• Stock values can sometimes change for no apparent reason, which can be quite frustrating for the
investor who is trying to anticipate the stock’s behavior based on the actual performance of the
company.
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Advantages of Preference Shares
• Permanent burden on the company to pay a fixed rate of dividend before paying anything on the
other shares.
• Not advantageous to investors from the point of view of control and management as preferences
shares do not carry voting rights.
• Compared to other fixed interest bearing securities such as debentures, usually the cost of raising
the preference share capital is higher.
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4).National Savings Certificate
National Savings Certificate, popularly known as NSC, is a time-tested tax saving instrument that
combines adequate returns with high safety. NSCs are an instrument for facilitating long-term savings. A
large chunk of middle class families use NSCs for saving on their tax, getting double benefits. They not
only save tax on their hard-earned income but also make an investment which are sure to give good and
safe returns.
Characteristics
NSCs are issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000 for a maturity
period of 6 years. There is no prescribed upper limit on investment.
Individuals, singly or jointly or on behalf of minors and trust can purchase a NSC by applying to the Post
Office through a representative or an agent.
One person can be nominated for certificates of denomination of Rs. 100- and more than one person can be
nominated for higher denominations.The certificates are easily transferable from one person to another
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through the post office. There is a nominal fee for registering the transfer. They can also be transferred
from one post office to another.
One can take a loan against the NSC by pledging it to the RBI or a scheduled bank or a co-operative
society, a corporation or a government company, a housing finance company approved by the National
Housing Bank etc with the permission of the concerned post master.
Though premature encashment is not possible under normal course, under sub-rule (1) of rule 16 it is
possible after the expiry of three years from the date of purchase of certificate.
Tax benefits are available on amounts invested in NSC under section 88, and exemption can be claimed
under section 80L for interest accrued on the NSC. Interest accrued for any year can be treated as fresh
investment in NSC for that year and tax benefits can be claimed under section 88.
National Savings Certificates are available in the denominations of Rs. 100 Rs 500, Rs. 1000, Rs. 5000, &
Rs. 10,000. There is no maximum limit on the purchase of the certificates. So it is for you to decide how
much you want to put in the NSCs. This is of course a huge benefit for you can decide as much as your
budget allows.
Maturity
Period of maturity of a certificate is six years. Presently interest paid is 8 % per annum half yearly
compounded. Maturity value of a certificate of any other denomination is at proportionate rate. Premature
encashment of the certificate is not permissible except at a discount in the case of death of the holder(s),
forfeiture by a pledge and when ordered by a court of law.
Tax Benefits
Interest accrued on the certificates every year is liable to income tax but deemed to have been reinvested.
Income Tax rebate is available on the amount invested and interest accruing under Section 88 of Income
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Tax Act, as amended from time to time. Income tax relief is also available on the interest earned as per
limits fixed vide section 80L of Income Tax, as amended from time to time.
Return
It is having a high interest rate at 8% compounded half yearly. Post maturity interest will be paid for a
maximum period of 24 months at the rate applicable to individual savings account. A Rs1000
denomination certificate will increase to Rs. 1601 on completion of 6 years.
1 year Rs 81.60
2 year Rs 88.30
3 year Rs 95.50
4 years Rs103.30
5 years Rs 111.70
6 years Rs 120.80
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Advantages
Tax benefits are available on amounts invested in NSC under section 88, and exemption can be claimed under section 8
accrued for any year can be treated as fresh investment in NSC for that year and tax benefits can be claimed under se
person to another through the post office on the payment of a prescribed fee. They can also be transferred from one
backing of the Government of India so there are no risks associated with your investment.