Buy Liquid Mutual Funds For Just Rs.1000
Invest Now

Cube News Wrap: New NPS Deposit System, Gold Bonds & ETFs

Your one-stop-shop for all the major developments in the finance world that happened this week.
October 16, 2020

Schedule a call based on your convenience. And get an expert to help you invest.

Top 4 Reasons To Try Our Powerful Investment App!

  • High Quality MFs
  • Top Notch Stock Advisory
  • Expert Financial Advisors
  • Alternative Investments

#1 What’s New About The NPS Deposit System?

Till 2004, NPS (National Pension Scheme) was a government-sponsored pension scheme for government employees. In 2009, the scheme became available for every Indian citizen between the ages of 18 and 60. Here’s what’s new:

  • NPS investors now have access to the D-Remit facility 
  • D-Remit allows NPS investors to set up a SIP 
  • Users can automate SIPs via auto-debit
  • Access to same-day NAV if contribution made before 8.30 AM
  • Minimum amount of Rs. 500/transaction for both Tier I and Tier II

What do you need to use the D-Remit facility?

  • Generate a Virtual ID using the Central Recordkeeping Agency (CRA)
  • OTP authentication is required for generating the Virtual ID
  • This Virtual ID will be linked to the PRAN for D-Remit

Who can use the D-Remit facility?

Any active NPS investor with access to net banking facilities can use the D-Remit facility. 

#2 Important Things To Know About Sovereign Gold Bonds

The Sovereign Gold Bond scheme was introduced in November 2015. The scheme was introduced so that the increasing demand for physical gold could be managed. Here’s what’s new:

  • Starting 13th October 2020, investors can subscribe to Sovereign Gold Bonds
  • Fixed price set at ₹5,051 per gram of gold by RBI
  • This scheme offers an annual interest rate of 2.50%
  • ₹50 per gram discount for online investors paying digitally
  • Subscription date for Sovereign Gold Bond Scheme ends 16th October 2020
  • Investors can subscribe to the scheme for as low as 1 gram of gold
  • The Sovereign Gold Bonds will be sold through Banks, Post offices, NSE, BSE, and Stock Holding Corporation of India
  • No GST charges or storage concerns if gold is held in a Demat form
  • Offers a unique advantage of tax-free capital gains at maturity

#3 Mutual Funds Banking On The IT Sector

  • Major Fund houses invested in 1 or more technology company
  • Current exposure to IT stocks at an all-time high at 11.6%
  • Wipro, Infosys, HCL Tech, TCS, and Tech Mahindra saw max value increase
  • Fund houses currently favouring IT over Financials 

Shriram Shekhar
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.

Top 4 Reasons To Try Our Powerful Investment App!

Schedule a call based on your convenience. And get an expert to help you invest.

  • High Quality Mutual Funds
  • Top Notch Stock Advisory
  • Invest in U.S. Stocks
  • Alternative Investments
  • Low Minimum Investments
Try Cube’s Exclusive Wealth Concierge Service! We offer a 10-minute portfolio analysis and set up service to select users.

Similar Posts

Calculate your
SIP returns

Calculate your
Lumpsum returns

Grow your money without wasting time

on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!