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Few Investment Instruments for Maximum Returns

Choosing the right investment avenues is not an easy task and the choice depends on a lot of factors. We all prefer investing in instruments that offer high returns, but with better returns, there is always an element of risk involved. Higher the returns, the more is the risk here are few investment instruments for maximum returns.

So, where should you invest your hard-earned money to enjoy high returns with minimum risk? Is there such an investment option in India? With gold and silver prices falling and the value of rupees appreciating, which are the best places to invest?

Here, we touch upon some of the best investment avenues for earning great returns, which should answer all these questions.

Invest in stocks

The idea of investing in stocks when the market is at its peak and there is a lot of risk associated with the same might sound absurd to you. You should know that you still can invest in the stock market, despite its conditions, and watch your investment thrive.

Look for stocks with low beta value. This value helps measure the volatility of a particular stock when compared to the Sensex. When you choose to invest in low beta value stocks, the risk reduces in regard to other stocks, especially when the market is at its peak.

Invest in mutual funds

Investing in SIPs is the best way to overcome volatilities in the market, which is why you should consider investing in top performing mutual funds to enjoy good returns. However, avoid investing a large sum of money through lump sum investments in case of equity mutual funds.

If you do have a large sum to invest, you can consider balance funds, liquid funds, debt funds, and ultra short term funds instead.

There is a class of equity mutual funds that helps in tax saving. These are a part of equity linked saving scheme (ELSS). By investing in these, you can enjoy tax benefits under IT Act, section 80C.

Other Tax Saving Options

Apart from ELSS, there are other tax-saving options you can consider as well. Some of these include Public Provident Fund (PPF), 5-year tax-saving Fixed Deposit schemes, and National Saving Certificates (NSCs).

PPF is the best investment option for small business owner and salaried people. PPFs are operated by the government and offer 99% security. NSC is popular in rural India as the minimum investment amount is Rs.100, and has a lock-in period of 5 or 10 years. The current rate of interest is 8.10%.

For eg: If you purchase an NSC worth Rs.100 now, you’ll get Rs.147.61 back after a period of 5 years.

If you’re above 60 years, consider opting for a Senior Citizen Scheme (SCS), the current interest rate of which is 8.6%.

Invest in Fixed Deposits/ Recurring deposits

While stocks and mutual funds have a lot of excitement associated with them, it might be wise to consider fixed income options like FDs. Fixed Deposit interest rates in India vary from institution to institution, and are higher than usual saving accounts. This method of investment is safe and, if you choose the best Fixed Deposit scheme, you’ll be able to earn decent returns too. The benefits of investing in Fixed Deposit are many, like:

– Most banks and NBFCS offer a wide choice of tenures, starting from 12 months to 60

– Some of these institutions offer partial withdrawal of your money and there is a loan facility available, where you can take out a loan of up to 90% of the principal amount

– You can avail the interest on a monthly, quarterly, half-yearly, or yearly basis, or choose to reinvest this amount in an FD and earn additional interests

Invest in gold bonds

Gold bonds have come into the scenario recently, and are yet another choice that you can invest in. These bonds are best for long-term investments. The value of gold bonds is directly linked to the rate of gold. Thus, you’ll get better returns when the price of gold escalates. Also, you’ll be eligible to earn interest on these bonds.

There is, of course, a risk of gold price fluctuations, but going by history, gold prices are likely to go up in the near future as prices tend to rise with inflation.

Invest in IPOs

This investment instrument is for people who have an appetite for high-risk ventures. In India, IPOs continue to be one of the most popular choices as they offer one of the best returns.

Whether you’re looking for short term returns or long term, it is important to diversify your investment portfolio. Diversification will help in negating the possibility of a big loss.

An equity laden portfolio can offer a high return but the risk of loss is also high. By investing in secured options like PPF or FDs, the loss in one can be neutralised by the gain in another, which is why you should make sure that you have a balanced portfolio to earn high returns.

This article is for educational purposes only invest at your own risk and carefully research these different investment avenues and make your selection based on what suits your finances and risk appetite.

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Amendment in SEBI LODR Regulations

Amendment in SEBI LODR Regulations

SEBI, with the intent of investor protection and enabling them to take better and well informed investment decisions, has vide its Circulars dated 25th May 2016 and 27th May 2016 brought in certain amendments to the LODR Regulations (primarily Regulations 33 & 52). With these amendments SEBI has put in place a mechanism to review the audit qualifications contained in the audit reports of the listed entities.

These Regulations pertain to the requirements of submitting Financial Results of the Company. As per the extant provisions, alongwith the Audited results for the financial year, Form A/ Form B were needed to be submitted, depending upon there being any Auditors’ Qualifications or not.

Now, vide the above mentioned Circulars, it has been decided to do away with the requirement of filing Form A/ Form BThe listed Companies are now required to disseminate the cumulative impact of all the audit qualifications in a separate format, simultaneously, while submitting the annual audited financial results to the stock exchanges.

The provisions of the said Circulars are applicable for all the annual audited standalone / consolidated financial results submitted by the listed entities for the period ending on or after March 31, 2016. That is to say, even for the results for the FY 15-16-either already submitted or under the process of being submitted.

A brief gist of the said Circulars is as under:

1.The requirements of filing Form A/ Form B along with the annual financial results has been dispensed with.

  1. In case of Audit Reports with modified opinions (i.e. Qualified Audit Reports), a Statement on Impact of Audit Qualifications is needed to be submitted.
  2. The management of the listed entity shall have the option to explain its views on the audit qualifications
  3. Where the impact of the audit qualification is not quantified by the auditor, the management shall make an estimate. In case the management is unable to make an estimate, it shall provide reasons for the same. In both the scenarios, the auditor shall review and give the comments.
  4. Further, the said Statement is also needed to be given in the Company’s Annual Reports.
  5. Further, in case of audit reports with unmodified opinion(s), the listed entity shall furnish a declaration to that effect to the Stock Exchange(s) while publishing the annual audited financial results.
  6. Schedule VIII of the LODR Regulations has been deleted.
  7. These requirements are applicable for both listed equity shares and also listed NCDs/ NCRPSs.

Format of Statement on Impact of Audit Qualifications (for audit report with modified opinion) submitted along-with Annual Audited Financial Results – (Standalone and Consolidated separately)

Statement on Impact of Audit Qualifications for the Financial Year ended March 31

[Under Regulation 33 / 52 of the SEBI (LODR) (Amendment) Regulations, 2016]

I. Sl. No. Particulars Audited Figures (as reported before adjusting for qualifications) Adjusted Figures (audited figures after adjusting for qualifications)
1 Turnover / Total Income
2 Total Expenditure
3 Net Profit/ (Loss)
4 Earnings Per Share
5 Total Assets
6 Total Liabilities
7 Net Worth
8 Any other financial item(s) (as felt appropriate by the management)
II. Audit Qualification (each audit qualification separately):
a. Details of Audit Qualification:
b. Type of Audit Qualification : Qualified Opinion / Disclaimer of Opinion / Adverse Opinion
c. Frequency of qualification: Whether appeared first time / repetitive / since how long continuing
d. For Audit Qualification(s) where the impact is quantified by the auditor, Management’s Views:
e. For Audit Qualification(s) where the impact is not quantified by the auditor:
(i) Management’s estimation on the impact of audit qualification:
(ii) If management is unable to estimate the impact, reasons for the same:
(iii) Auditors’ Comments on (i) or (ii) above:
III. Signatories
CEO/Managing Director
CFO
Audit Committee Chairman
Statutory Auditor
Place:
Date: