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Money Thread

Discussion in 'Hangout' started by Bala, Sep 23, 2010.

  1. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Hi guys,
    Any good idea on a way where money invested will get doubled in 5 or 6 years without any risk and where the matured amount will not be taxed.:cool:
    Earlier I used to invest 10 k every month in KVP, but it does not exist anymore and the matured amount is taxable:(,at that time gold investment doubled in value in a year while kvp took 7 years and 8 months :(
    Any idea please, better if it's white and non taxable :)
    Last edited: Mar 24, 2014
  2. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Best is to invest in long term bond mutual fund.
    Expect return just little more than bank fixed deposit, but the return will be tax free (1+ year considered as long term gain, tax free).
  3. redbull

    redbull

    Messages:
    292
    Bangalore
    Bond funds have interest rate risk. If interest rate rises, fund NAV drops. Long term bond funds have greater risk becasue there is more chance over long term for the interest rate to rise.
    1 person likes this.
  4. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Yes, any investement which is giving you better returns, will have some kind of risks. But overall, bond funds have lesser risks (so lesser returns as well), than say stock mutual find etc.

    BTW intererst rate is just one of other risks, but this major one.

    Have a look at few top funds and its returns in long term (3+ years), you will see these gives better returns than bank FD.
  5. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Or,by traditional methods is it ok to buy 4 gm gold coin every month, will the price double in 5 years?
    I understand that no body can predict these things.Atleast in the past one year there has not been much appreciation.
  6. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Bala, depends what is your plan for investing, I mean purpose.
    On returns, gold doesn't make much choice, but it can be part of portfolio, in less %, like 15-20% max. This can work as hedging, in case stock market is not performing well.
  7. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,243
    Chennai
    Linea 1.3
    I really doubt if the price of Gold would double in 5 years. Still, its just my view. :)
    If you decide on buying gold, why not consider buying it as commodity instead of buying it physically?
  8. Bala

    Bala Esperto

    Messages:
    1,070
    Villupuram
    Ramesh,buying it in commodity will make it accountable.If you buy it from Saravana stores, you give it back, you are given cash on hands and no loss is suffered.
    My purpose is simple Ravi.
    I will not be a pensioner, so when I turn old and grey ( even if it is 15 to 20 years away), I want to get 25 k every month from what I invest today, at least to meet the basic expenses at that age.
  9. ramjn

    ramjn Staff Member Janitor

    Messages:
    5,243
    Chennai
    Linea 1.3
    Why not consider the Pension plan from LIC? The fund is well distributed among the stocks, bonds and other investments. I have invested in this. Paying Rs. 6000 every month.

    Note:- I have my super financial advisor. If you want I can share his contact number. I can assure you that he is truly professional and will never compel or force you invest like others do. :D
  10. Ravi

    Ravi Staff Member Janitor

    Messages:
    6,001
    Bangalore
    Grande Punto 1.3
    Or for Pension, in India, best option is PPF, if you don't have open it immediately. This has multiple benefits in long term.
    1 person likes this.

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