Why can’t financial instruments that offer Guaranteed Investment Returns guarantee at least the current risk-free rate of return (which in my opinion is the rate of return offered by the Public Provident Fund scheme)?
What do you think?
Why can’t financial instruments that offer Guaranteed Investment Returns guarantee at least the current risk-free rate of return (which in my opinion is the rate of return offered by the Public Provident Fund scheme)?
What do you think?
2 thoughts on “Tweets on 2010-07-14”
With the interest rates going up and down all the time, the problem is generating those returns equalling PPF. Upto 80% of the funds collected through Small Savings Scheme like NSC, PPF etc can be used by the state govts as a 25 year loan @9.5% p.a and if there are no takers for this then the cerntal govt has to think on how they can give the promised 8% to customers. That is why they are planning to market-link the Small Savings also
http://economictimes.indiatimes.com/news/economy/policy/Small-savings-rates-may-be-linked-to-mkt/articleshow/6165298.cms
Pls refer to this link – This talks about KVP
http://getahead.rediff.com/slide-show/2010/jul/16/slide-show-1-money-double-your-money-in-without-any-risk.htm
This is an ideal one too i suppose.