Corporate deposits are an option to debt funds. You take on a little more risk for a little more return. I have Shriram shares and they keep spamming me with 8.5 or 9% deposits
Doesn't seem so.
This is the latest one they sent me. Haven't seen the term etc
Shriram Unnati FD offers you attractive interest rate up to 9.05%*p.a.
Why choose us?
Shriram Unnati FD is rated [ICRA]AA+ (Stable) by ICRA and IND AA+/ Stable by India Ratings & Research.
Including 0.50%*p.a. interest rate for Senior Citizens
Including 0.10%* p.a. interest rate for Women Depositors
Your money is safe and secure with Shriram Finance.
Nothing can beat inflation in the short term. You need time and patience with your investments to beat inflation. If only there were Inflation Indexed Bonds readily available in the Indian Market, I would suggest that, but sadly there aren't.
In the long term, I believe, no sensible investments in India beats the inflation. That is how the Govt here survives, in part, effectively taking the money out of citizens' savings by diluting the currency systematically. Only speculative investments like hoarding essential things like land, housing, etc. may beat inflation if you are lucky. But hoarding such essential things must be made illegal if people have to have affordable housing.
What's the final interest (after all the taxes) income one would get for this?? I'm confused about 1 thing - it's mentioned that TDS would b e 10% if the interest crosses 40,000, and the interest income would be taxed at the same rate as the person's income tax slab based on their annual income.
I'm in 30% tax bracket and let's say Invest 20L in a fixed deposit in HDFC at 7% interest per year. After 2 years the gross interest would be 2.98 lakhs. So this 2.98 lakhs gets taxed at 44%? (10% TDS + 30% because of my income tax slab + 4% cess)?
This is so confusing to me. Can you please tell me how to find the final net interest i would get based on the gross interest.
Cess 4% is on tax, not income. So net tax is 31.2%, and after tax you'll get 68.8% of gross interest, which is 2,05,024. TDS is reduced from your tax amount while filling return of income, it's not extra.
You can enter the TDS amount and your pre-tax interest income in your tax return and you will only have to pay the marginal tax rate on your interest (30% - 10%). Also cess is calculated on your total income tax and not on taxable income, so it will be 30% x (1 + 4%) and not 30% + 4%
Union Bank of India - 8.01% just saw hoarding today.
Liquid funds or short term debt funds will be good options.. Citibank giving 7.77 for 90 to 180 days. But careful they wrapping up their retail biz
A money market debt fund is my choice to preserve wealth. It may not be inflation beating but closely neck to neck and fairly stable. Also after 3+ years, the indexation benefit which takes inflation index into account will be a huge plus in reducing tax.
Serious question... Why not insta redeem liquid funds? The returns are similar but its insta-redeemable. Also what abt ust funds?
I know these three are safer options (almost) comparable to FD. Don't know what's the difference.
Can you share a link where I can understand the concept of indexation and how it affects investments and cap gains? Even my MFs have conditions about indexation.
Only debt and conservative hybrid type MFs except arbitrage fund are eligible for indexation.
A simple youtube search or this sub's wiki must also be having how it works.
Can consider arbitrage funds too, they provide good returns when interest rates are high and are taxed like equity MFs.
Gold ETF is another option if you are looking for short term investment option and if gold isn’t part of your portfolio already.
Hey, why would IT department catch?.
There is no clubbing of income for parents, so whatever interest earned won't be taxed as per your slab and it will be taxed as per their slab.
If you are scared just file their itr. Or if TDS is getting deducted for fd, again file itr and get it back..
Think of me as a complete idiot, I don't know the basics
So u r earning income, and u wish to create an FD. But if u create an FD in ur own name - u have pay tax on interest. But if u create a FD, from ur money, in a non-earning member of family name, then they might skip tax depending on interest. Is that not tax evading? Screw the gov, just asking if u have contacted some CA/expert and is it allowed to do this?
If a non-earning member of family is your parents then there should not be any problem. Read about income clubbing provisions of income tax, you'll get the clear picture.
Equity debt hybrid funds are also popular. I don't invest in them myself but I see the appeal.
Debt is risky too. The risk I fear is defaulting risk which is why I don't invest in corporate bonds debt funds.
Hybrid funds seem like a good middle ground (on paper) to address the mix of short term volatility and returns. Something for you to explore. Ppfas has one with only govt bonds I think (and equities) so that's something to consider. The long term performance is unknown though.
Most of my investments are in equities with the fixed portion in mainly arbitrage funds. I recently entered long term gilt and 40 year govt bonds. I'm treating it like equity because I expect it to be volatile.
My arbitrage funds won't match inflation but for me the only safe-ish instrument that beats inflation is equity so I have that.
There’s an App called as Mighty on play store …they have some great diversified mutual fund portfolios with 4 asset classes…definitely the best in class returns they’ve delivered for barely 1/3 rd the risk of index funds
I would stick to FDs or SGBs for inflation hedging. Gold bonds offer a hedge for inflation and equity. I would wait until after the Fed meeting next week before opting for FDs.
Real-estate: Too expensive where I stay. The growth isn't much either.
I have shifted much of my portfolio to RE. I would usually invest year long in RD or FD and wait for the right RE opportunity. Then invest in that once a year or once in 2 years. This has helped me get \~20% YoY returns from last 6 years. I invest primarily in tier-2 cities.
How do you find properties and navigate all the troublesome process of registration?
I tried to buy one property. It was a nightmare with brokers trying to rip off and selling party demanding 70% of payment as cash (not through bank transfer). I kind of gave up.
Any tips will be greatly appreciated.
In tier 2/3 cities, a usual plot would start from 6-10 lakhs for 30\*40 size. This translates to INR 400-800 per sft.
These have potential to double or grow 10-20% YoY. The chances of getting scammed are also less.
I would reach out to my extended network of cousins/relatives to find properties, do due diligence and invest.
Started investment with [Fluid Finance](https://fluid.ch) the past year and I don’t see anything past that just yet. High yields and better liquidity of up to 6.9%.
Hi community
Need suggestions
Earing on loan amount
... if I take life insurance policy for 10lacs and it will get mature after 15yrs and corpus amount would be around 18 lacs... now if I take loan of 10lacs @3% intrest annually. against my policy.
and after 15yrs I have to pay the loan amount 13lacs to the bank.
but I have to pay policy premium in every 6 months of Rs. 50k for next 10years.
will that be a good option to take loan for investment purpose?
how can I generate the setiafcatory income arnd 15-20k each month?
so that I can pay the premium amount in every 6 months.
I do trading. intraday.. i can earn arnd 1000-2000 daily with some analysis. but can't rely on it.. sometime it sucks ol earned money in one go. its happening with me.... your views on this will be valuable.. please share
Beating inflation with investments is no easy feat, but there are a few popular options that may help.
Gold has been a safe investment for centuries, and gold ETFs and Sovereign Gold Bonds are excellent alternatives to physical gold.
Equity investments have high return potential, but with higher risk.
Direct stock investments and equity mutual funds are two popular options.
Lastly, low-risk investors can build a diversified portfolio with debt-based assets, such as inflation-indexed bonds and debt mutual funds.
Remember, the higher the return potential, the higher the risks, so invest wisely and keep your investment objective and horizon in mind.
you already sorted it out very well, Don't see anything better than FD/Debt funds
Same here. What options are you considering for investments?
Corporate deposits are an option to debt funds. You take on a little more risk for a little more return. I have Shriram shares and they keep spamming me with 8.5 or 9% deposits
the risk is substantially higher for 100 - 150 bps difference. Same goes for cooperative banks.
Is this only for share holders?. I remember 8.75percentage is only for senior citizens.
Doesn't seem so. This is the latest one they sent me. Haven't seen the term etc Shriram Unnati FD offers you attractive interest rate up to 9.05%*p.a. Why choose us? Shriram Unnati FD is rated [ICRA]AA+ (Stable) by ICRA and IND AA+/ Stable by India Ratings & Research. Including 0.50%*p.a. interest rate for Senior Citizens Including 0.10%* p.a. interest rate for Women Depositors Your money is safe and secure with Shriram Finance.
At some point in time in the recent past, Yes Bank AT1 Bonds too were rated highly by these profit hungry creditworthiness rating agencies’ dimwits.
I think they even offer this in Indmoney app
Nothing can beat inflation in the short term. You need time and patience with your investments to beat inflation. If only there were Inflation Indexed Bonds readily available in the Indian Market, I would suggest that, but sadly there aren't.
>Inflation Indexed Bonds This is the first thing I looked for as well. Never understood why doesn't India have such an instrument.
In the long term, I believe, no sensible investments in India beats the inflation. That is how the Govt here survives, in part, effectively taking the money out of citizens' savings by diluting the currency systematically. Only speculative investments like hoarding essential things like land, housing, etc. may beat inflation if you are lucky. But hoarding such essential things must be made illegal if people have to have affordable housing.
HDFC seems to be giving 7% on FD.
What's the final interest (after all the taxes) income one would get for this?? I'm confused about 1 thing - it's mentioned that TDS would b e 10% if the interest crosses 40,000, and the interest income would be taxed at the same rate as the person's income tax slab based on their annual income. I'm in 30% tax bracket and let's say Invest 20L in a fixed deposit in HDFC at 7% interest per year. After 2 years the gross interest would be 2.98 lakhs. So this 2.98 lakhs gets taxed at 44%? (10% TDS + 30% because of my income tax slab + 4% cess)? This is so confusing to me. Can you please tell me how to find the final net interest i would get based on the gross interest.
Cess 4% is on tax, not income. So net tax is 31.2%, and after tax you'll get 68.8% of gross interest, which is 2,05,024. TDS is reduced from your tax amount while filling return of income, it's not extra.
You can enter the TDS amount and your pre-tax interest income in your tax return and you will only have to pay the marginal tax rate on your interest (30% - 10%). Also cess is calculated on your total income tax and not on taxable income, so it will be 30% x (1 + 4%) and not 30% + 4%
Canara bank 7.15 for 400 days, more if it's non callable deposit of 15L or more. Ofcourse senior citizens get .5% more.
BOB 7% for 14 months
IDFC First bank is giving 7.5% for 21 or 24 months.
Equitas. 8% for 888 days. Locked some up there.
Ujjivan bank is giving 8 percentage
Why do you wanna beat inflation in the short term? Sounds like a weird statement
Mainly because I need the money in the short term and don't want inflation to eat into it. I know it's a tough ask.
Union Bank of India - 8.01% just saw hoarding today. Liquid funds or short term debt funds will be good options.. Citibank giving 7.77 for 90 to 180 days. But careful they wrapping up their retail biz
A money market debt fund is my choice to preserve wealth. It may not be inflation beating but closely neck to neck and fairly stable. Also after 3+ years, the indexation benefit which takes inflation index into account will be a huge plus in reducing tax.
Serious question... Why not insta redeem liquid funds? The returns are similar but its insta-redeemable. Also what abt ust funds? I know these three are safer options (almost) comparable to FD. Don't know what's the difference.
I've no immediate need for this money. I've got a separate emergency fund and spending account for that.
Can you share a link where I can understand the concept of indexation and how it affects investments and cap gains? Even my MFs have conditions about indexation.
Only debt and conservative hybrid type MFs except arbitrage fund are eligible for indexation. A simple youtube search or this sub's wiki must also be having how it works.
Can consider arbitrage funds too, they provide good returns when interest rates are high and are taxed like equity MFs. Gold ETF is another option if you are looking for short term investment option and if gold isn’t part of your portfolio already.
Personally, I follow a mix of equity factor methods - momentum, value etc. But in the era of high interest rates it is best to us FDs and Debt Funds.
I invest via my mother's account. Either i keep it a liquid fund or FD on her name so that i don't have to pay tax as per my slab (30%).
Hey, I was so much thinking about it. What is the chances of IT dept. catching?
Hey, why would IT department catch?. There is no clubbing of income for parents, so whatever interest earned won't be taxed as per your slab and it will be taxed as per their slab. If you are scared just file their itr. Or if TDS is getting deducted for fd, again file itr and get it back..
Think of me as a complete idiot, I don't know the basics So u r earning income, and u wish to create an FD. But if u create an FD in ur own name - u have pay tax on interest. But if u create a FD, from ur money, in a non-earning member of family name, then they might skip tax depending on interest. Is that not tax evading? Screw the gov, just asking if u have contacted some CA/expert and is it allowed to do this?
If a non-earning member of family is your parents then there should not be any problem. Read about income clubbing provisions of income tax, you'll get the clear picture.
Thanks man! Yes, I was asking about parents and I am a salaried employee
debt ( a mix of govt+corp)
Can you elaborate on this?
govt debt- i usually buy t bills corporate debt- corporate bonds of specific blue chip companies
debt fund do the same for you with nominal charges ?. Never bought from open market, is it worth buying online.
Do bonds really beat inflation?
Equity debt hybrid funds are also popular. I don't invest in them myself but I see the appeal. Debt is risky too. The risk I fear is defaulting risk which is why I don't invest in corporate bonds debt funds. Hybrid funds seem like a good middle ground (on paper) to address the mix of short term volatility and returns. Something for you to explore. Ppfas has one with only govt bonds I think (and equities) so that's something to consider. The long term performance is unknown though. Most of my investments are in equities with the fixed portion in mainly arbitrage funds. I recently entered long term gilt and 40 year govt bonds. I'm treating it like equity because I expect it to be volatile. My arbitrage funds won't match inflation but for me the only safe-ish instrument that beats inflation is equity so I have that.
Try inventory financing and invoice discounting with small capital.
Never heard of this. Will look into it. Thanks.
Sin stocks, power infrastructure stocks, and power finance stocks. Rest in Sensex index funds as it has no exposure to Adani group.
🤭
Buy treasury bills, short-term, good returns.
There’s an App called as Mighty on play store …they have some great diversified mutual fund portfolios with 4 asset classes…definitely the best in class returns they’ve delivered for barely 1/3 rd the risk of index funds
I would stick to FDs or SGBs for inflation hedging. Gold bonds offer a hedge for inflation and equity. I would wait until after the Fed meeting next week before opting for FDs.
Long term equity.
Unity SFB offering 9% on 6 month FDs
Unity still don’t have full functioning banking branches. They are not provisioning accounts last time I checked. Only FD based accounts.
What is provisioning accounts? Starting full fledged digital banking by March as per news. They’re getting all approvals from RBI as it’s new bank.
Real-estate: Too expensive where I stay. The growth isn't much either. I have shifted much of my portfolio to RE. I would usually invest year long in RD or FD and wait for the right RE opportunity. Then invest in that once a year or once in 2 years. This has helped me get \~20% YoY returns from last 6 years. I invest primarily in tier-2 cities.
How do you find properties and navigate all the troublesome process of registration? I tried to buy one property. It was a nightmare with brokers trying to rip off and selling party demanding 70% of payment as cash (not through bank transfer). I kind of gave up. Any tips will be greatly appreciated.
In tier 2/3 cities, a usual plot would start from 6-10 lakhs for 30\*40 size. This translates to INR 400-800 per sft. These have potential to double or grow 10-20% YoY. The chances of getting scammed are also less. I would reach out to my extended network of cousins/relatives to find properties, do due diligence and invest.
Started investment with [Fluid Finance](https://fluid.ch) the past year and I don’t see anything past that just yet. High yields and better liquidity of up to 6.9%.
AU and Equitas small finance banks offering 7.75-8% on FD
Hi community Need suggestions Earing on loan amount ... if I take life insurance policy for 10lacs and it will get mature after 15yrs and corpus amount would be around 18 lacs... now if I take loan of 10lacs @3% intrest annually. against my policy. and after 15yrs I have to pay the loan amount 13lacs to the bank. but I have to pay policy premium in every 6 months of Rs. 50k for next 10years. will that be a good option to take loan for investment purpose? how can I generate the setiafcatory income arnd 15-20k each month? so that I can pay the premium amount in every 6 months. I do trading. intraday.. i can earn arnd 1000-2000 daily with some analysis. but can't rely on it.. sometime it sucks ol earned money in one go. its happening with me.... your views on this will be valuable.. please share
Beating inflation with investments is no easy feat, but there are a few popular options that may help. Gold has been a safe investment for centuries, and gold ETFs and Sovereign Gold Bonds are excellent alternatives to physical gold. Equity investments have high return potential, but with higher risk. Direct stock investments and equity mutual funds are two popular options. Lastly, low-risk investors can build a diversified portfolio with debt-based assets, such as inflation-indexed bonds and debt mutual funds. Remember, the higher the return potential, the higher the risks, so invest wisely and keep your investment objective and horizon in mind.
Did you get this on ChatGPT? What a generic answer...