This is Madhavadas from Kerala State. Hope you are doing good.
I am 56 year old person, retired. If I have to choose between investing a lump sum of money in ABSLI Assured Income Plus & RBI Bonds, What would be your suggestion. Appreciate your response
Dear Madhavadas ji,
I am doing good, thank you!
May I know your investment objective and time-horizon?
Are you referring to 7.RBI Floating Rate Savings Bonds 2020 ?
Thanks a lot for your response.
Yes, my query is regarding FRSB 7.15% 2020 by RBI.
My objective is to have a steady monthly income in addition to the monthly income that I receive via MF/Bank FD/rental/P.O.MIS etc.
In FRSB 2020, though the interest rate changes once every six months, I am OK with it as it is pegged with NSC with (0.35%extra).
Just to quote an example, if I invest Rs.1Cr I will get Rs.3 lakh plus in six months.
Appreciate your suggestion.
RBI bonds are a good choice. But, note that the interest income is taxable.
Related article :
RBI Floating Rate Savings Bonds 2020 : Features & Review
In case, you are looking for immediate annuity (pension), can consider a annuity (pension) plan like LIC Jeevan Akshay.
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