New Delhi: There has been a sharp increase in data inflows showing.
Fall interest rates on traditional savings products such as fixed deposits and the need to create a safety net because of a pandemic, trigger a shift to a small savings product, which remains interesting because of the higher returns they offer and the impact of compounding.
For example, in 2021-22, DE’s savings position is estimated to increase by 21.
8% from 8.
8% growth in the previous year, while certificates (such as NSC) are also regulated up 21.
2% in fiscal current of 11.
8% on The previous year, according to data in budget documents (see Graph).
Experts connect an increase in investment in this scheme with a better return search.
“Group investors to fixed income products mainly because of low yields on market-related debt, especially mutual funds.
Volatility only increases with the impact of Mark-To-Market (MTM) in the story of increasing interest rates.
However, if you are right for your holding period, the product falls Tempo is your maturity, which you can produce, provided you hold it to maturity.
Investors can consider these products in the staggering way to spread for the next six-eight months, “said the Solar Financial Planner Bhatia.
Government officials say the inflows for small savings schemes are estimated to be on the higher side this year and are expected to be moderate next year because the FD level rises.
The RBI has appointed a high level as an obstacle to its ability to reduce the overall level and has supported the rationalization of return on this scheme.
“This year, we hope that around RS 6 lakh crore inflows.
But in the typical years it is a sequence of Rs 3-4 lakh crore and in 2022-23 we hope around Rs 4.
25 lakh crore currents in the perspective that People will find other investment roads are equally interesting.
But if it doesn’t happen, the market loan will go down, “said Ajay Seth, secretary of economic affairs, told Ti in an interview.
The center has kept interest rates unchanged for this scheme for seven quarters.
The post office scheme 5 years offers 6% 7% level, while PPF produces 7.
1% return.
“The surge in a collection of small savings in fiscal has ensured that government net loans remain within reasonable and even failed in budget estimates.
In current fiscal, the government has scored a collection of small savings budgeted.
The jury is still out whether a collection of small savings will be Continuously interesting, “said Soumya Kanti Ghosh, head of a group economic advisor in SBI.