Financial Products

We have a basket of financial/Investment Products, available through Primary and Secondary Market. An Investor can choose them based on his risk appetite, time horizon and financial goals. Details of some of the popular Financial/Investment Products are provided below.

i) Mutual Funds

Mutual funds allow investors to pool in their money for a diversified selection of securities, managed by a professional fund manager. It offers traditional products like Liquidity Funds, Bonds Funds, Equity funds as well as an array of innovative products like fund of funds, exchange-traded funds, Fixed Maturity Plans, Sector Funds and many more. Now an investor can invest in securities listed on the International Stock Exchanges also. Investors can choose various mutual funds scheme depending on their risk profile and return expectations. Mutual Funds provides an opportunity to the investor to diversify his investments through a professional fund management services along with several tax benefits.

ii) Debentures

Debentures/Non-Convertible Debentures (NCDs) are issued by corporates to raise funds. They are both Public issue as well as private placements. Debentures are rated by rating agencies and are listed in the stock exchanges which gives them liquidity and tradability in the secondary market. This product is good for those who are looking for an alternate or in addition to bank fixed deposits as it gives fixed/assured returns. Debentures may also include certain specific purpose bonds i.e. Capital Gain Bonds – These bonds offering tax exemption for transferring gains of long term capital assets. Taxes saving infrastructure bonds – The Infrastructure bonds are issued with the 80CCF tax benefits.

iii) Corporate Fixed Deposits

Like Banks certain companies also take deposits which are governed by the companies Act. Company/Corporate Fixed Deposits are deposits, which are made in a Company, for a fixed tenure, at the pre-agreed rate of return. The rate of interest gets determined by the tenure of the deposit as well as other factors e.g Credit Rating of the Company, Market Conditions etc. Normally these deposits are unsecured and non-transferable in nature. However, the investor does not have direct claim over the assets of the company if the company defaults. Therefore Company Fixed Deposits are risky investment option as compared to debentures. Nevertheless, due to higher interest rates, these deposits are popular. A conscious investment can be made by analyzing the rating and financial strength of the company.

Corporate Fixed Deposits	Rating	1 Yr	2 Yr	3 Yr	4 Yr	5 Yr	Sr. Citizen %
	Interest Rates# (% P.a.) (As on 18/02/2025)
Shriram Finance Limited	MAA+	7.85	8.15	8.70	8.80*	8.80	0.50
Bajaj Finance Limited	FAAA	7.40	7.80	8.10	8.40^	8.10	0.25
PNB Housing Finance Limited	FAA+	7.45	7.25	7.75	7.40	7.60	0.30
Mahindra Finance Limited	FAAA	7.50	7.80	8.10	8.05	8.10	0.25
LIC Housing Finance Limited	FAAA	7.25	7.60	7.75	NA	7.75	0.25
ICICI Home Finance Limited	MAAA	7.25	7.65	7.75	7.75	7.75	0.25
* For 50 Months             ^For 42 Months # Please check the latest Interest Rates before making any investments

iv) Insurance Products

Every Person should not only aim for growth but also protecting the assets (physical and human) as well. That gives a piece of mind and freedom to grow it further. Insurance is such product which gives a comfort at the time of loss of assets and protects the income.

There is a wide range of insurance policies, each aimed at safeguarding certain aspects of your health or assets. Broadly, there are 8 types of insurance, namely:

1. Life Insurance

2. Motor insurance

3. Health insurance

4. Travel insurance

5. Property insurance

6. Mobile insurance

7. Cycle insurance

8. Bite-size insurance

v) National Pension Scheme

The National Pension Scheme is a social security initiative by the Central Government. This pension programme is open to employees from the public, private and even the unorganised sectors except those from the armed forces. The scheme encourages people to invest in a pension account at regular intervals during the course of their employment. After retirement, the subscribers can take out a certain percentage of the corpus. As an NPS account holder, you will receive the remaining amount as a monthly pension post your retirement.

There is a deduction of up to Rs.1.5 lakh to be claimed for NPS – for your contribution as well as for the contribution of the employer. – 80CCD(1) covers the self-contribution, which is a part of Section 80C. The maximum deduction one can claim under 80CCD(1) is 10% of the salary, but no more than the said limit. For the self-employed taxpayer, this limit is 20% of the gross income. – 80CCD(2) covers the employer’s NPS contribution, which will not form a part of Section 80C. This benefit is not available for self-employed taxpayers. The maximum amount eligible for deduction will be the lowest of the below: a. Actual NPS contribution by employer b. 10% of Basic + DA c. Gross total income – You can claim any additional self contribution (up to Rs 50,000) under section 80CCD(1B) as NPS tax benefit. The scheme, therefore, allows a tax deduction of up to Rs 2 lakh in total.

To open a New NPS account online click here : NEW NPS ACCOUNT REGISTRATION

For online contribution to existing NPS Account Click here: NPS CONTRIBUTION

For online registration of SIP in NPS Account Click here: SIP in NPS ACCOUNT

vi) RBI Floating Rate Bonds

The Government of India decided to issue Floating Rate Savings Bonds (Taxable) 2020 with effect from July 01, 2020 to enable resident citizens/HUF to invest in a taxable bond, without any monetary ceiling. These bonds are Not Transferable (except transfer to a nominee(s)/legal heir in case of death of the holder of the bonds), Not Tradeable in the secondary market

Maturity will be at the end of 7 years (lock-in-period) from the date of issue. Premature encashment at interest payment date shall be allowed to individuals who are 60 years and above subject to minimum lock-in-period.

Interest rate applicable is National Savings Certificate (NSC) rate (Base rate) + 35bps. The coupon/interest of the bond would be reset half yearly – every 1st Jan and 1st July, which is currently 8.05% P.a. Interest will be paid in Non-cumulative option with Half-yearly interest pay-outs (1st Jan & 1st July). No option to pay interest on cumulative basis.

vii) Sovereign Gold Bond

Sovereign Gold Bond Scheme (SGB) was launched by Government in November 2015, under Gold Monetisation Scheme. RBI Notifies the terms and conditions for the scheme from time to time. The rate of SGB is declared by RBI before every new tranche.

The Bonds are denominated in multiples of gram(s) of gold with a basic unit of 1 gram. The tenor of the Bond is for a period of 8 years with exit option in 5th, 6th and 7th year, to be exercised on the interest payment dates. The investors are compensated at a fixed rate of 2.50 % P.a payable semi-annually on the nominal value. Bonds can be used as collateral for loans. Bonds are tradable on stock exchanges within a fortnight of the issuance.

viii) Capital Gain (54EC) Bonds

Capital gains or 54EC bonds, are bonds specifically meant for investors earning long-term capital gains (like from sale of property etc.) and would like tax exemption on these gains. Tax deduction is available under section 54EC of the Income Tax Act. These bonds do not allow any tax exemption on short-term capital gains tax. The maximum limit for investing in 54EC bonds is Rs. 50 lakhs. The eligible bonds under Section 54EC are REC (Rural Electrification Corporation Ltd), PFC (Power Finance Corporation Ltd) and NHAI (National Highways Authority of India) and IRFC (Indian Railways Finance Corporation Limited).

Key Features of 54EC Bonds

54EC bonds are popular investment instruments as investing in 54EC bonds allows investors to claim tax deductions on long-term capital gains. 54EC bonds also offer other features.

1. Safe and secure: 54EC bonds are AAA rated.

2. Interest: Currently Interest on 54EC bonds is 5% P.a. (Payable Annually) which is taxable.

3. Tenure: 54EC bonds come with a lock-in period of 5 years and are non-transferable.

4. Investment amount: Minimum investment in 54EC bonds is one bond of Rs. 10,000 and the maximum investment is 500 bonds amounting to Rs 50 lakhs in a financial year.

ix) Portfolio Management Services (PMS)

Portfolio Management Services or PMS account is an investment portfolio in Stocks, Debt, and fixed income products managed by a professional money manager, that can potentially be tailored to meet specific investment objectives. When you invest in PMS, you own individual securities in the investor’s own demat account unlike a mutual fund investor, who owns units of the entire fund. You have the freedom and flexibility to tailor your portfolio to address personal preferences and financial goals. Although portfolio managers may oversee hundreds of portfolios, your account may be unique. As per SEBI guidelines, only those entities who are registered with SEBI for providing PMS services can offer PMS to clients. As per the SEBI guidelines, the minimum investment required to open a PMS account is Rs. 50 Lacs. PMS are of two types

1. Discretionary PMS : Where the investment is at the discretion of the fund manager & the client has no intervention in the investment process.

2. Non-Discretionary PMS :Under this service, the portfolio manager only suggests investment ideas. The choice, as well as the timings of the investment decisions, rest solely with the investor. However, the execution of the trade is done by the portfolio manager.

x) Alternative Investment Fund (AIF)

The term “alternative investment fund”, refers to the collection of pooled investment funds that infuse in venture capital, private equity, hedge funds, managed futures, and other types of investments. We can also say that an AIF is a type of investment distinct from traditional investment options such as stocks, bonds, and other debt securities.

The Securities and Exchange Board of India’s Regulation Act, 2012 defines an Alternative Investment Fund (SEBI). AIFs can form as a corporation, a trust, or a Limited Liability Partnership (LLP). As per the SEBI guidelines minimum investment in AIF is Rs. 1 Crore.

Generally, high-net-worth people and organizations engage in Alternative Commitment Funds since, unlike Mutual Funds, they need a large initial investment.

xi) Peer-to-Peer (P2P) Lending

Peer-to-peer (P2P) lending enables individuals to obtain loans directly from other individuals, cutting out the financial institution as the middleman. Websites that facilitate P2P lending have greatly increased its adoption as an alternative method of financing.

(a) P2P lending websites connect borrowers directly to investors. The site sets the rates and terms and enables the transactions.

(b) P2P lenders are individual investors who want to get a better return on their cash savings than a bank savings account or CD offers.

(c)P2P borrowers seek an alternative to traditional banks or a better rate than banks offer.

xii) Invoice Discounting

Invoice discounting is a process in which a business sells an invoice to a third party, usually called a financing company or Investor. Immediately after selling an invoice, the business gets a percentage of the amount billed to the client while the financing company takes on the responsibility of collecting the full payment from the buyer.

How does Invoice Discounting works?

1. A Company sells a good or provides a service to a customer.
2. The seller invoices the client, giving them up to 30 to 120 days to pay.
3. The Company then sends the invoice to a third party, usually called a financing company/Investor.
4. The financing company/Investor buys the account receivable from the Company. Funds are made available at a certain percentage of the face value of the invoice (~80%).
5. When the customer makes a payment, the balance of the invoice is remitted back to the Company, minus a service fee/Interest.
6. financing company/Investor earns the Service fee/Interest in this process which comes in the range of 10-14% P.a.

xiii) Asset leasing

Asset leasing allows you to co-invest in physical assets like electronics, furniture, bikes, and batteries that are leased to corporates with a strong balance sheet and business fundamentals.

The terms of the lease are pre-agreed which leads to monthly recurring payments. It can generate higher post-tax returns as compared to fixed deposits (approx 10-14% IRR).  Generally, the time frame for Asset leasing is 3 years.

xiv) Revenue-based financing

Revenue-based financing, also known as royalty-based financing, is a method of raising capital for a business from investors who receive a percentage of the enterprise’s ongoing gross revenues in exchange for the money they invested.

In a revenue-based financing investment, investors receive a regular share of the businesses income until a predetermined amount has been paid. Typically, this predetermined amount is a multiple of the principal invested.

Revenue-based financing is often considered a hybrid of equity and debt financing, which makes it particularly popular with startups, technology companies, and SaaS (software as a service) businesses. Although an enterprise that raises capital through revenue-based financing will be required to make regular payments to pay down an investor’s principal, it is distinct from debt financing for a number of reasons. Interest is not paid on an outstanding balance, and there are no fixed payments.

Payments to an investor have a directly proportional relationship to how well the firm is doing. This is because payments vary based on the level of the business’s income. If sales fall off in one month, an investor will see his or her royalty payment reduced. Likewise, if the sales in the following month increase, payments to the investor for that month will also increase.

Above mentioned products have certain risks and should be chosen after proper understanding and under the guidance of a financial expert.