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Where will you put your money?

Discussion in 'Money Matters' started by shakambari, Dec 29, 2009.

  1. shakambari

    shakambari Platinum IL'ite

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    Hi,

    If you are able to spare 10K every month, where will you like to invest your money on a reccuring basis-

    1.Bank R.D.

    2.Gold

    3.Mutual funds SIP

    4.Shares

    5.P.P.F.

    6.any other saving instrument

    7.Chit funds

    Can you say why you choose to do this???
     
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  2. SriVidya75

    SriVidya75 Platinum IL'ite

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    I would opt for 1 and 3 , bank recurring deposits / SIPs they are safe and also even though the interest rates or appreciation seem a bit slow or down still the principal remains safe...
     
  3. rosary

    rosary Gold IL'ite

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    i would put in bank recurring deposit ..... and /or PPF

    are nt mutual funds similar to shares ???
     
    Last edited: Dec 30, 2009
  4. radsahana

    radsahana Silver IL'ite

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    hi

    i would advise to put in MF SIPs. bcoz since each month u are investing, ur leveraging the stock market indices high and low. it give better returns in long term, investing regularly in small amount, rather then investing in bulk at one go.

    PPF is also a good option, but it will give only fixed income.

    infact we try to put some amt each month in SIP
     
  5. shakambari

    shakambari Platinum IL'ite

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    Thanx for your fb,Srividhya,Rosary and Radsahana.

    Nice to see that you are all very cautious in your savings approach.

    Personally I would like to divide it into 2 or 3 parts and invest in

    1. PPf(takes care of tax savings + decent 8% return, and assured safety )

    2. Regular investment in a good equity fund (reasonable return-But I wont give sip cheques in advance but opt to invest on a day the sensex dips low)

    3.Gold coins(you can buy 1,2, 4 gm coins etc in banks and even Post office /purity assured -decent appreciation /instant liquidity)

    What do you feel abt my choice?

    Share markets are too wild for small investors ,I feel.
     
  6. rosary

    rosary Gold IL'ite

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    you mean to say PPF is exempted from tax deduction.
    8 % interest annually is very good ...
     
  7. shakambari

    shakambari Platinum IL'ite

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    Yes Rosary.

    Your Investments in PPF qualify for tax exemption under Section 80 c.
     
  8. orion80

    orion80 Platinum IL'ite

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    Adding to Shakambari's post:

    Investments in PPF are exempted from tax under section 80C.

    One more advantage of PPF: Unlike some tax savings schemes where the interest generated from them is taxable (eg: tax saver FD), the interest earned on PPF is not taxable.

    -Lakshmi
     
    Last edited: Jan 1, 2010
  9. Shanvy

    Shanvy IL Hall of Fame

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    Shakambari,

    I would not like to put the whole thing in a single basket. i may go for 3 splits. I need easy liquidity at least 1/3 of the amount.

    My thinking is a little off tangent. like i have recently done it. I have a homeloan. when i talked to my banker, i found there is a facility of increasing your emi part payment towards the principal. so I started paying a extra 3K towards the principal, along with the existing emi. this reduces the number of years in case of floating rate.

    Another, I would look at PPF as you say.

    I would look at some investment route for my kids. I am more particular about some deposits that would help in their education. and moreover, if in the case of taking educational loans, these deposits may be a kind of security (long term).. I would invest in child deposit schemes that are now being opened by some banks, as i have explained earlier in one of my post, I would go for flexi deposits. I believe in the compounding interest factor.

    I like your gold coin purchase. recently we were at a jeweller shop, and we were discussing the pros and cons. the person is somebody we know for the last 14 years and he told that that buying 1 gm coin is not so profitable in the sense, there is no point in paying for the making charges(I am not sure how much) for 1 gm. not sure. but i know there is a fixed amount.
     
  10. radsahana

    radsahana Silver IL'ite

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    hi friends

    Shakambari: your ideas are really a good one.

    infact we do liek that some amount in PPF (upto the max limit)
    open PPF a/c in your kids name also. (One parent and kids a/c togethere will have max limit)

    For our daughters bday, each year we buy 10 gm gold coin.

    then as shakamabari said we can put in mutual fund when market dips.

    also in between we can keep buying equity.

    But thumb rule is always keep 6 months continengency in liquid assets, means in bank FD, which we can encash easily.

    Aslo now we can invest in Gold Mutual Funds.
     

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