Is it a good idea to invest in Kisan Vikas Patra (VP) for 10 years instead of for a shorter term?
Author: Apurva Tamhane Post Date: 27 Jun 2023
Kisan Vikas Patra (KVP) is a savings scheme offered by the Government of India. Historically, KVP was a popular investment option due to its fixed interest rates and guaranteed returns. However, with the availability of various other investment options, such as mutual funds, fixed deposits, and stocks, it's worth considering the advantages and disadvantages of KVP before making an investment decision.
Advantages of Kisan Vikas Patra
Guaranteed Returns: KVP offers fixed interest rates, which are declared by the government periodically. This ensures that your investment will grow at a predetermined rate.
Safety: KVP is backed by the government, which makes it a safe investment option. The principal amount invested, along with the accumulated interest, is guaranteed.
No Tax Deductions at Source (TDS): KVP does not attract Tax Deductions at Source, which means the entire interest earned is credited to your account without any deduction.
Disadvantages of Kisan Vikas Patra
Fixed Lock-in Period: KVP has a lock-in period, typically ranging from 2.5 to 4 years. During this period, premature withdrawals or encashments are not allowed, which can limit liquidity.
Inflation Risk: KVP's interest rates may not always keep up with inflation rates, which could result in the erosion of purchasing power over time.
Lower Returns: Compared to other investment options such as equities or mutual funds, KVP's returns may be relatively lower. If your goal is long-term wealth creation, you might consider exploring other investment avenues that have the potential for higher returns.
It's essential to evaluate your financial goals, investment horizon, risk appetite, and return expectations before investing in KVP or any other financial instrument. Consulting with a financial advisor can provide personalized guidance based on your specific circumstances and help you make informed investment decisions.
Author: Umesh Chandra Bhatt Post Date: 18 Jul 2023
For those people who do not have an immediate requirement for their personal funds, Kishan Vikas Patra (KVP) is a good investment option. This is a Govt scheme and hence it is a safe investment. The returns are good if a person is able to keep it up for 10 years period. If one withdraws it prematurely then the returns are much decreased.
Many retired people go for this scheme mainly due to its safety and long-term returns. People especially in small towns and villages prefer it as they can invest in it in the nearest Post Office.
I remember there was a time when people rushed for this I remember because at that time interest rates were very high and their money doubled only in 5 years. Now the interest rates in Banks and Post Office are hovering in the range of 7 to 8% and KVP also gives the same return. In my view, for elders and retired people, it is still a good option, especially for those who have surplus funds to park for a long time.
For those people who do not have an immediate requirement for their personal funds, Kishan Vikas Patra (KVP) is a good investment option. This is a Govt scheme and hence it is a safe investment. The returns are good if a person is able to keep it up for 10 years period. If one withdraws it prematurely then the returns are much decreased.
Many retired people go for this scheme mainly due to its safety and long-term returns. People especially in small towns and villages prefer it as they can invest in it in the nearest Post Office.
I remember there was a time when people rushed for this I remember because at that time interest rates were very high and their money doubled only in 5 years. Now the interest rates in Banks and Post Office are hovering in the range of 7 to 8% and KVP also gives the same return. In my view, for elders and retired people, it is still a good option, especially for those who have surplus funds to park for a long time.
Find more Topics.
Point to Point!
Latest discussions
- Sunset or sunrise are not permanent
- Opening ISC for general discussions, SocialVillage to pause activities
- Now what is the future of SV
- March 2024 topic-based contest winner
- Be judicious while ideas spring up
- They started returning home with spring in their step
- ‘Bosonto eshe gechhe’/The Spring has arrived
- Lessons we have to learn from a spring
- Our wrist watches had springs then
- March 2024 Topic-based contest - Spring
Latest Articles
Best Employee Rewards Platforms in IndiaDiscover best Employee Rewards Platforms in India. Explore the leading Employee Rewards Platforms in India that are revolutionizing the dynamics of workplaces.
Scope of smm in digital marketing in 2024
Social Media Marketing (SMM) involves using social media platforms to connect with your audience, build your brand, drive website traffic effectively, and increase sales or engagement or leads. It encompasses a range of activities aimed at creating and sharing and creative content on social media networks to achieve marketing goals and it gives you better results
IOS-17.1.2 - 10 - Major Update Updates
iOS 17.1.2 is the latest version of Apple's mobile operating system. It includes a number of new features and improvements, including a redesigned Focus Mode, enhanced Live Text, improved Visual Look Up, a new Weather app, updated Maps, a revamped Wallet app, enhanced Safari, a smarter Siri, improved Handoff, and general performance improvementsMore...
SocialVillage QR Codes
 |
 |
| SV Facebook page | SV Instagram page |
 |
 |
| SV YouTube Channel | SV Home Page |