How to invest in NSCs and POMIS..

In the last blog we discussed about how can we beat the infaltion by investing in fixed deposit schemes. Today i am to present you two different government schemes. You can invest in these schemes if you want your money to be ultra-safe. Though safe these are rewarding too. Will give you around 8- 8.7% of returns on your savings. Let’s talk about the NSCs first. National savings certificate (NSC) are basically government bonds. You invest money in this scheme by buying such bonds from your nearby post office.


These bonds are present in physical form you buy them by paying an amount in lumpsum. The interest you will receive on NSCs will be fixed on the day you invest and will remain the same during the period your money remains invested. On maturity you receive a handsome amount. The amount you actually get is the principle amount added the compound interest you have earned at a decent rate of 8.4%. while on the other side when we talk of ‘post office monthly income scheme’ it’s a completely different scheme. Although the way of investing is same as the NSCs but the way you get benefited is different. This scheme is best for those who have an amount to invest but need a little money every month. This scheme is similar to fixed deposit scheme where interest doesn’t gets reinvested, but you withdraw the amount of interest every month to cater to your basic expenses. Same as NSCs you need to invest your money in POMIS through your nearby post office. The scheme provides a decent interest rate of 8.4 – 8.7 % there is no age limit for investing in such scheme but there is a limited amount you can invest. Check with your nearby post-office for details. Both the above schemes mentioned above can fetch you deductions in income tax. Under the section 80 C of income tax law. These two schemes are good for you if you want your money to be invested with government. It provides you with a grwater security of your miney while giving good returns. Go add these to your investment portfolio. Invest wise, be wealthy.

What to know before you invest..


Today we are to talk about a few things which we must know before we invest our hard earned money. To start up with. Let’s discuss about FIXED DEPOSITS today. Fixed deposits are something which every investor during their investment life must have invested in. It being the easiest and the safest investment options is more preferrable over other schemes. What all you need to have a fixed deposit is, a principle amount and a bank nearby. Fixed deposits are a kind of lumpsum deposit you make with babks for a fixed tenure on which you receive a pre-defined rate of interest. Suppose you have invested rs. 10000 in FD scheme at 10% interest rate for 5 years. On maturity you’ll be getting rs. 16,386 on maturity. You all must be having a figure of around rs. 16,105 after calculating cummulative interest on rs. 10000 for 5 years at 10% rate. You all are correct but actually banks compound interests every quarter thus handing you over with rs. 16,386 on maturity. So at the end of the day you are getting an interestvrate of 10.38% per annum. You can open up a fixed deposit for different duartions varying ranging from 7 days to 10 years. And your investment could range from as little as rs. 100 to unlimited amount with some banks. Be cautious while investing, as different banks offer different interest rates. And the interest rates will also vary with the duration you want to invest in. You get income tax benefit on investing in 5year FD. Given your prior notice to the bank. Suppose your annual income for the current year is rs. 500000 and you invested a sum of 200000 under the 5 year FD scheme. Then you get a deduction of rs. 1.5 lakh from your income under section 80C of incomr tax law. So finally you end up paying income tax for rs. 3.5 lakh only. It’s pretty simple and rewarding to invest in fixed deposit schemes. Check out with the baks available with the facility and invest your money. Wise investments are the key to financial freedom. Stay updated play wise.

What is management?

To define management it may take a few words or may be a few pages. Small but vast term- management. Well the term management was popularized by Fredrick Winslow Taylor whom we all know as the one who conducted studies on industrial engineering. But he termed managers as executives. However management in the words of Peter F. Drucker is the tool which makes productive use of both human and material resources. Coming apart from the terms and words of the great ones. I term management as the system which is needed to integrate the work of each institution. That’s true that most of the big, rather say business giants started from a one-man-shop. But as they scale up their operations, their system grows complex. There rises a need of management. The two kinds of an organisation are similar to that of two kinds of organism. One is the hard-skinned insect which is tightly held by its tough skin. And the other is the vertebrate who has a skeleton. So when its about growing, the insect cant grow beyond a few inches. To grow larger, skeleton is needed. Similarly, a one-man-venture can’t grow beyond a fixed arena. To be a giant, an organisation needs management. Management doesn’t necessarily mean appointment of an executive. But if the ultimate owner doesn’t inherit the skills to make out productive use from the subordinates, there has to be someone to replace the owner’s position, as a manager. If the management applied on reaching the line of complexity. Then, there would only be mob, rather than an institution.

Financial freedom

Money is certainly the key to turn the dreams we have into reality we live. But to master this game we have to be the chess players not the chess peices. Money neither is paper nor is gold today, but it’s zeros and ones in banking computer screens. Who’s after money today? No one. We all are actually after the emotions that money creates: the power of empowerment, of freedom, of security, of having a choice, of feeling .We should work not because we have to rather because we want to. That’s financial freedom. To add up to the quality of your living there lies a single fundamental skill- financial planning. Even multimillion-dollar earners who didn’t apply the skill, list it all.
The skill teaches you to earn money while you sleep and multiply your income. And this joy comes to those who are not just the consumers in the economy but are the owners and we do it by becoming an investors. But remember investing doesn’t mean the stocks your grandma bought you when you were born or the stocks of company you work for. It’s your investment world. Do the analysis there are thousand of options to choose from. Invest right and master the game.