A Guide Fit For Every Pocket In Equity Market

On the last day of March, the government declared a massive cut in the interest rates on small savings schemes from the beginning of the first quarter of the financial year 2021-22. An overnight rethink drove the government to revoke the decision the next morning as an ‘oversight’. The incident took place in the backdrop of Assembly elections in four states and a Union Territory and that stoked the anticipation of a reversal after the polls. The rates in question yield slightly better returns to investors as against what commercial banks offer. If the cuts are introduced then the rates would come down to such a low that it would be a disincentive for the investors. In such a scenario, an individual with some amount of disposable income would search for an alternate asset class to park his or her money, where the capital invested will not only be safe but will also grow. In...