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Buoyed up by the success of Jeevan Aastha, its last guaranteed return plan, Life Insurance Corporation (LIC) has come out with another such plan. India’s biggest life insurer has launched LIC Jeevan Nischay – a single premium guaranteed return plan. This is a very conducive atmosphere for a product like Jeevan Nischay looking at the tight economy and an uncertain stock market. This is supported by the fact that mutual fund players booked profits by selling capital protection products in past few months. However, this is also true that though ‘Guaranteed Products’ like Jeevan Nischay offer investors an opportunity to earn assured returns while protecting their downside risk they also miss the upside potential, unlike in MF’s open-ended schemes or ULIPs, in case the market goes in favour of the fund.

One after the other, Indian companies are introducing their deposit schemes in the market. Now it’s the turn of Tata Motors, India’s largest automaker, which came out with its deposit schemes on August 25. It is seen that though company deposits offer better returns, normally 1-2 per cent higher, than bank deposits, they do not [...]

The ‘Bond Street’ is flushed with corporate deposits with companies on a drive to raise capital from the market after a gap of seven years. Companies such as Tata Group, Pantaloon, Great Eastern, Edelweiss Cap, etc. have successfully mopped around Rs 10,000 crore from the market. But the question arises: are these issues more beneficial [...]

In its Annual Credit Policy on Tuesday, the Reserve Bank of India (RBI) announced a cut in repo rate — the rate at which the RBI lends short-term funds to banks — and reverse repo rate — the rate at which banks park surplus funds with the RBI — by 25 basis points each (i.e., 0.25 % [...]