Best Saving Scheme

Ooviya · May 24, 2010

hi,

I want to know benefits and duration of gold exchange traded fuds and any other low risk muual funds available in India???

shaishav · May 24, 2010

Hi Priya,

Here is the retirement calculation for you (again based on my assumptions):

Retirement Plan:

Current age – 30

Retirement age – 60

Estimated monthly exp (at present cost) – 30,000(does not include any mortgage payments)

Years after Retirement – 25

Rate of return from retirement funds – 7% per annum

Expected inflation rate – 8%

Retirement Fund Corpus Required – 10.5 Crore

Investment required for 10.5 Crore corpus – Rs. 15000 per month (expected return 15% per annum)

Investment Suggested – 5000 in three diversified equity mutual funds every month for next 30 years. No Insurance needed for retirement planning if both husband and wife are earning otherwise a cover of 50L needs to be taken for the earning member of the family.

That completes the retirement plan. A review every 2-3 years must be done to see if reshuffling is required.

Regards,

Shaishav

shaishav · May 24, 2010

Hi Priya,

Now for house if you have a lump sum amount then invest it in Fixed Maturity Plans which will give you good returns and also your capital will be secure. When you go for a housing loan opt for the short tenure and high EMI which you can afford.

For ongoing exp keep transferring some amount to recurring deposit every month.

Regards,

Shaishav

Ooviya · May 24, 2010

Hi Shaishav,

i am waiting for ur reply!!

shaishav · May 24, 2010

Hi Deepa,

Please find my answers in red.

what are the requirements for this?

To invest in GOLD ETFs traded on Indian stock market you must have a PAN card and a demat and trading account with a broker in India.

Is it one time or monthly option available?

Buying Gold ETFs is similar to buying a share of a company. You can buy it lump sum and also chose to invest regularly when you think it is the right time to increase your investment in Gold.

How much minimum/ maximum amount?

There is no limit for the amount which can be invested but the source of funds should be genuine.

How can we redeem it?

You can buy or sell it online or by a phone call to your broker. The amount will be credited to your account in two days.

Can we buy/sell it online?

Please see the above answer.

For a time horizon for 10-15 years I would suggest you to invest in diversified equity mutual funds, balanced fund and gold equally. Or you can invest the fill amount in balanced funds which will give you the returns of equity and also the security of debt investment.

Do you have a PAN card?

Regards,

Shaishav

shaishav · May 24, 2010

Hi Ooviya,

You can buy and hold the Gold ETFs as long as you want there is no duration. The benefits are:

No need to buy physical gold.

Easy buying and selling as compared to physical gold

Secure returns (but it will just better inflation)

Will give you good returns in a bear market

Mutual funds are of various kinds. I think an individual doesn’t need to invest outside mutual funds. If you want to invest in NSC, KVP etc there is a mutual fund with investments in such instruments. There are mutual funds for specific sectors, tax planning, equity and debt mixed investment, debt investment, short, medium and long term debt investment etc etc.

Let me know if you need more information.

Regards,

Shaishav

Deep78 · May 24, 2010

shaishav,

I've pan card but no deemat and trading account.I believe i can open one in HDFC.Correct me if i'm wrong.

Thanks for explaining about Gold ETFs. Actually both me and my husband are not comfortable with mutual funds, we are thinking to go for a less risk one.

I have term policy,nsc and ppf which covers me but still my requirement is getting bigger,so thinking to expand my investment in another 10 yrs.But im paying my emi.

To give you the actual figure, i need more 5 lacs in 4 years and 10 lac in 10 years.

How much can be my investment and what are all the forms?
Rightnow i dont want any tax saver,as im in UAE.

Also please tell me how can i buy the gold EFTs.

PLEASE HELP ME TO TAKE PLAN FURTHER.

THANKS.

usr12 · May 24, 2010

Hi Shaishav

Just came across this thread and it is really great to see the detailed explanation U have given to ILS..

I am completely novice to the investment world could please advise me to choose the right investment options..

Here are the details..

Husband is 40 and I am 36. Both of us are working with monthly savings of 1 lakhs ( we are abroad now) ..We have one child aged 8 yrs.. Have not made any major investments other than one flat and LIC policies that we own in India..

Could you please guide on some of the best investment options to maximise our savings for next 10 years and later support the retirement as we are not covered by any pension plan..

Thanks In Advance..

shaishav · May 25, 2010

Deep78 said: ↑

shaishav,

I've pan card but no deemat and trading account.I believe i can open one in HDFC.Correct me if i'm wrong.

Thanks for explaining about Gold ETFs. Actually both me and my husband are not comfortable with mutual funds, we are thinking to go for a less risk one.

I have term policy,nsc and ppf which covers me but still my requirement is getting bigger,so thinking to expand my investment in another 10 yrs.But im paying my emi.

To give you the actual figure, i need more 5 lacs in 4 years and 10 lac in 10 years.

How much can be my investment and what are all the forms?
Rightnow i dont want any tax saver,as im in UAE.

Also please tell me how can i buy the gold EFTs.

PLEASE HELP ME TO TAKE PLAN FURTHER.

THANKS.
Click to expand...

<link rel="File-List" href="file:///C:%5CDOCUME%7E1%5CADMINI%7E1%5CLOCALS%7E1%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_filelist.xml"><link rel="themeData" href="file:///C:%5CDOCUME%7E1%5CADMINI%7E1%5CLOCALS%7E1%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_themedata.thmx"><link rel="colorSchemeMapping" href="file:///C:%5CDOCUME%7E1%5CADMINI%7E1%5CLOCALS%7E1%5CTemp%5Cmsohtmlclip1%5C01%5Cclip_colorschememapping.xml"><style>  </style> Hi Deepa,
Yes, you can open an account with HDFC Securities. Let me know if you need help in this I can get it done through India Infoline for you.

Gold ETF is also a mutual fund which invests in gold. If you have a time horizon of 4 years for 5 Lakh and 10 years for 10 Lakh I would recommend the following:



·SIP (monthly) of INR 8000 in HDFC Prudence Fund (Growth) for 48 months will give you 5 Lakh with an expected return of 12.5 % pa

·SIP (monthly) of INR 4000 in DSP Black Rock Equity (Growth) for 120 months will give you 10 Lakh with an expected return of 15 % pa

 I am sure if you follow the above plan religiously you’ll achieve your goal.
You can buy Gold ETFs after you have a demat and trading account with a broker in India.

Let me know if you need further help.

Shaishav

shaishav · May 25, 2010

Hi,

Choosing the right investment option which gives good returns in long term is no rocket science. You just need to invest in an instrument the returns from which should beat the inflation by a big margin. This is important because if you invest in an instrument which matches inflation then your money will not grow.

So, today when inflation (CPI) is around 9 – 10% your money should give you at least 15% return or more. Once we have decided that we want our money to work hard in order to give us 15% + returns it’s time to figure out where which investment will give us that kind of return. If we compare historical returns from various asset classes only real estate and stock market have given return in excess of 20% per annum.

You have already invested in real estate and I am sure you would not want to buy a real estate again at this stage of life. Now, the only option which you have is to invest in stock market to get the return you want.

If you expect to retire by age 60 I would recommend you to invest 75% of 1 Lakh ,you wish to invest , in 4 Diversified Equity Mutual fund Schemes (I can suggest some good ones if you want) and the Balance in 2 Balanced mutual funds which has both debt and equity component.

Keep it simple. Don’t think too much and lastly start investing as its already too late for you.

If I can be of any further help feel free to contact me.

Regards,

Shaishav