Common Investment Mistakes We Make

  • Combo Offer tax saving, Insurance
  • Investment in what other are investing
  • Not knowing how much to invest
  • Panic at the first sight of fall and divest
  • Will invest when I earn more
  • Not Keeping track of spends
Corporate Fixed Deposit Forms

Savings and Investment Related Products

Saving Bank Account:-
  • Often the First banking product people use
  • Low interest however, Highly liquid
  • Suitable for inculcating the habit of saving among the customers
Special Bank term Deposit Scheme:-
  • This is the Tax saving scheme available with banks
  • Relief under Section 80C of the Income Tax Act available
  • Term deposit of 5 Years maturity in scheduled bank is mandatory
Recurring Deposit Account:-
  • Some fixed amount is deposited at monthly intervals for a Pre-fixed term
  • Earns higher interest than saving bank account
  • Helps in the saving of a fixed amount every month
Bank Fixed Deposits(Bank FDs):-
  • Involves placing funds with the banks for a fixed term(not less than 30 days) for a certain stipulated amount of interest
  • The ideal investment time of Bank FDs is 6 to 12 months as normally interest on bank for less than 6 months bank FDs is likely to be low
  • The time frame assumes importance as early withdrawal may carry penalty
Company Fixed Deposit
  • Fixed deposit scheme offered by a company. Similar to a Bank deposit
  • Used by companies to borrow from small investors
  • The investment period must be selected carefully as most FDs are not encashable prior to their maturity
  • Not as safe as a bank deposit. Company deposits are ‘Unsecured’
  • Offer higher returns than bank FDs, Since they entail higher risks
Corporative Analysis of Investment Avenues
Security Rate of Return
(Annual Income)
Rate of Return
(Capital Appreciation)
Total Return* Risk Liquidity Tax Benefits Convenience
Financial Securities
Equity Low High 14% High High Yes High
Non-Convertible Debenture Medium Low 9%-14% Medium Average Nil High
Financial Securities (Non-Securitized)
Bank Deposit Low Nil 8%-10% Low High Yes High
PPF Nil Medium 8.70% Nil Low Yes High
Life Insurance Nil Average 6%-8.5% Nil Low Yes High
Mutual Funds
Growth / Equity Low High 14%-16% High High Yes High
Income / Debt Medium Average 9%-11% Low High Yes High
Real Assets
Real Estate Low Medium 10%-15% Low Low Nil Average
Gold / Silver Nil Low 9%-14% Average Average Nil Average
The Table Contains Indicative figures from the past experience, they are of no guarantee. Investors are requested to make their own decision and bear in mind that market investment are subject to risk.
GOVERNMENT SCHEMES (Tax saving schemes*)

National Savings Certificate(NSC):-
-Popular income tax saving scheme, available throughout the year
-Maturity period of 5 years and 10 Years
-Interest rate is 8.6% for 5 year NSC and 8.9% for 10years NSC
-Minimum investment is Rs. 100 and with no upper limit
-Transferable and a provision of loan on the basis of this scheme
Public Provident Fund(PPF):-
-Interest rate of 8.7% p.a
-Minimum investment limit is Rs.500 and maximum is Rs. 1,50,000
-Maturity period of 15 years
-The first loan can be taken in the 3rd Financial year from the date of opening of the account, or up to 25% of the amount at credit at the end of the first financial year. Loan amount can be returned in maximum of 36 instalments,
- A person can withdraw an amount(not more than 50% of the balance) every year from the 7th year onwards
Post office Scheme(POS):-
-It is one of the best income tax saving Schemes
-It is available throughout the year
-Post office schemes depends upon the type of Investment and maturity period,Which can be divided into the following categories:-
a) Monthly Deposit b) Saving Deposit c) Time deposit d) Recurring Deposit
Only time deposit of 5 Years maturity is eligible for Income tax benefit Under Sec-80C.
Equity Linked Savings Schemes(ELSS)
-Mirror image of a diversified equity fund, however, with tax benefit U/S 80C
-Lock in period of 3 Year
-Dividends are also tax free
-On sale of these unit, benefit can be obtained of Long term capital gains, on which no capital gains tax is to be paid
-Minimum investment is Rs. 500 and then multiples thereof
-Investor can opt for Systematic Investment Plan(SIP)
Rajiv Gandhi Saving Scheme(RGSS)
 -RGESS is a new Tax Saving Scheme which was announced in Budget 2012 to encourage first time investors in stock market
-Under RGESS, you are eligible for a tax deduction on 50% of the amount invested
-The maximum amount eligible for investment in a year for RGESS is Rs 50,000. So maximum deduction is 50% of 50,000 = Rs 25,000
-You can take advantage of RGESS for three consecutive years
-RGESS allows you to invest directly in stocks which are part of CNX-100 index or BSE-100 index
-Some Mutual Funds and ETFs which invest only in the above companies are also eligible for RGESS
-For this you need to open a demate account then Designate the A/C as RGESS Account by filling up relevant form and then buy relevent stock.
Unit Linked Saving Scheme(ULIP)
-ULIP is protection as well as saving plan
-The return in ULIPs are market Linked and are not guaranteed
-Only investment of 5 Years maturity is eligible for Income tax benefit Under Sec-80C
Kisan Vikas Patra(KVP)
-Money invested in this scheme doubles in 8 Years and 7 months
-There is a minimum investment limitation of Rs.100 with no upper limit
-This scheme is available throughout the year
-Currently there is no tax benefit on investment under this scheme


Equity Investing is taking part ownership in the business. A commitment should be made only after adequate research has established the viability of the business proposition and the attractiveness of the price at which it is available.While the objective of analysis is primarily to determine which businesses to buy and at what price, there are two basic approaches to the subject- Fundamental Analysis and Technical Analysis.
We believe in Value Investing and suggesting our clients to invest in those businesses which are having MOAT .We follow Fundamental analysis technique for Selecting Stocks.
Fundamental analysis considers both qualitative and quantitative dimensions of a business. While financials will reveal history of the business and the financial readiness to grow in the future, evaluating factors such as the economic conditions favourable to the business, the ability of the management to identify and exploit opportunities, the operating efficiencies that the business possesses and the risks that may affect the plans and its ability to meet these contingencies, will define the attractiveness of the business as an investment proposition.

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