Government Investment Schemes
If you are an investor, you probably are looking for products that yield high returns without the risk of losing principal money. Luckily, government products like NPS and SGB are high-return, low-risk combinations that not only keep you future-ready but also promote a sense of financial freedom and peace of mind. National Pension System and Sovereign Gold Bonds are a perfect match for your long term goals and come with security and credibility.
Let’s talk about why these two products must be a part of your financial plan and where to invest for the most hassle-free process.
Sovereign Gold Bonds and their benefits
Gold in its physical form — jewellery or ornaments — has always been a popular investment among the Indian populace. In the past, gold was only considered a hedge against inflation and held entirely in physical form, but today, it finds its place in investors’ portfolios, primarily as paper gold. SGBs are government securities denominated in grams of gold. They are substitutes for investment in physical gold. You can subscribe to the bonds at the issue price fixed by RBI, and the bonds will be redeemed in currency on maturity.
But why should you buy SGB rather than physical gold?
- The quantity of gold for which you pay is protected since you receive the ongoing market price at the time of redemption/ premature redemption.
- The SGB offers a superior alternative to holding gold in physical form because the risks and costs of storage are eliminated. Further, the Govt.government provides a discount of Rs 50/- per gram for investors purchasing gold through the digital mode.
- You are assured of the market value of gold at the time of maturity and interest @2.5% pa. SGB is also free from issues like making charges and purity in gold in jewellery form.
- The most significant advantage of SGBs is that they do not attract capital gains tax if held till maturity.
- SGBs are also cost-effective as there is no entry cost.
- Investing for goals that are at least eight years away, such as children’s education, marriage, or retirement, are ideal as SGBs mature after eight years.
Talking of retirement, NPS is a great tool.
The National Pension System is a long term retirement-focused investment product managed by the Pension Fund Regulatory and Development Authority (PFRDA). The subscriber is required to open an account with any one of the POPs (Point of Presence) or through eNPS- an online option. StockHolding is the recipient of the best POP( Point of Presence) award in various categories and offers you the comfort to be associated with a reputed and experienced service provider.
The minimum contribution in a Financial Year for an NPS Tier-I account is Rs 1,000. NPS offers an additional deduction of Rs 50,000 under section 80CCD (1B) and is open to Indian citizens aged between 18 and 65 years. Subscriber can stay invested in NPS up to 70 years of age.
It is a mix of equity, fixed deposits, corporate bonds, liquid funds and government funds. Based on your risk appetite, you can decide how much of your money can be invested across these asset classes through NPS.
NPS seeks to inculcate the habit of saving for retirement and providing regular income during the retired years. And as life expectancy is on the way up, you may need to stack up more wealth than estimated earlier. NPS suits those who are looking to save for their retirement but are not very comfortable in making investment decisions on their own.
- NPS helps make equity and debt asset classes available in one place with an option to switch between them with varying allocation.
- The Life stage option in NPS automatically allocates funds between assets as one age.
- Even on maturity, NPS takes care of one’s pension without much active involvement.
- The most crucial advantage that the NPS has had since its very first day is its low cost.
- 60 percent of the total accumulated corpus can be withdrawn if the value is greater than two lakhs at the time of superannuation / attaining age of 60.
- A subscriber can get additional tax benefit under 80CCD(2) to contribute to his Tier 1 NPS Account, maximum contribution up to 10% of basic salary, through his/her employer.
e-Services provided by StockHolding
StockHolding has been working on digitisation and ease of doing business. It has rolled out e-Stamping in 22 States / Union Territories (UTs), e-Court fees in 14 States / UTs and an e-Registration fee collection system in 6 States / UTs. StockHolding issues, on average, more than 3,00,000 e-Stamp certificates daily.
You can also use their e-Stamping and e-Registration facilities to pay stamp duty and registration charges for sale deeds, conveyance deeds, release deeds, relinquishment deeds and partition deeds, making the process hassle-free and straightforward.
StockHolding has developed an online electronic system for collecting non-judicial stamp duty and issuance of e-Stamp certificate in digital form for Bank Guarantee in association with Indian Bank Association (IBA) SWIFT India. The e-Stamp number and the details of the stamp duty get embossed on the Bank Guarantee, thereby dispensing with the requirement of the e-Stamp certificate. This will pave the way for the issuance of bank guarantee in totally paperless electronic form. It is already approved by a few State Governments and under consideration of other State Governments in India.
StockHolding has developed an end-to-end solution for collecting stamp duty and issuance of e-Stamp certificate in digital form for Loan Agreements in association with National e-Governance Services Limited (NeSL). Some State Governments have recently approved the payment of stamp duty through digital e-Stamp certificates where the loan agreements are digitally executed.
Litigants and advocates can also use the Stockholding portal to pay the e-Court fee online and print e-Court fee receipts from the safety of their homes. This can be done for cases pertaining to some of the States.
Here’s one place you can go to for a hassle-free transaction – StockHolding.com. StockHolding is a financial powerhouse offering a suite of financial solutions tailored to your financial planning needs. They not only cover short-term savings, investments in the stock market, personal & family needs, long-term security, easy loans against securities, retirement plans, and protection for life & valuables but also makes government fees payment a cakewalk.
With transparency, dependable service, integrity and a strong pedigree of certified professionals on board who promise trustworthy service over three decades, the Corporation has a robust pan-India presence. Its network spreads across more than 200 branches with millions of customers.