Our parents and grandparents have always believed in bank FDs and even today, they are considered safe and rewarding. But now that we have n number of options for making our investment decisions, do you think that Fixed deposits are good enough for us? Would appreciate it if we could get some answers with reasons too.
Some of the options which come to mind.
¤ Invoice discounting.
¤ Wine/ Alcohol cellar.
¤ Art collection.
¤ Numismatic collection.
¤ Being in the power circles. (Being connected to powerful businesses, political outfits, thugs turned businessperson/ thug turned 'social servent'/politiian)
¤ Ship breaking or salvaging operations of sunken ships/ sunken cargo.
All depends on your risk appetite. If you think FD's are not worth time and investment, then it means either you are financially sound or are greedy.
sidwho wrote:But don't you think that's debatable? Because there are some other investment options too that are almost as secure as a bank FD and would provide better returns too. Wouldn't that be a smarter investment choice for everyone?All depends on your risk appetite. If you think FD's are not worth time and investment, then it means either you are financially sound or are greedy.
Sahil_Jain wrote:Cred gives 9% assured return (Credibility is concern, although I am using it)
But don't you think that's debatable? Because there are some other investment options too that are almost as secure as a bank FD and would provide better returns too. Wouldn't that be a smarter investment choice for everyone?
Investment must be diversified in all the fields on the basis of Liquidity, Return and Risk. Investing in any particular stream is not a good idea. One must have some cash on hand as well for the emergencies. You never know when ATM/Internet stops working!
lavdhesh wrote:Some of the options which come to mind.
¤ Invoice discounting.
¤ Wine/ Alcohol cellar.
¤ Art collection.
¤ Numismatic collection.
¤ Being in the power circles. (Being connected to powerful businesses, political outfits, thugs turned businessperson/ thug turned 'social servent'/politiian)
¤ Ship breaking or salvaging operations of sunken ships/ sunken cargo.
can u explain how to invest in all these and how much return we can expect,i know about invoice discounting
lavdhesh wrote:Some of the options which come to mind.
¤ Invoice discounting.
¤ Wine/ Alcohol cellar.
¤ Art collection.
¤ Numismatic collection.
¤ Being in the power circles. (Being connected to powerful businesses, political outfits, thugs turned businessperson/ thug turned 'social servent'/politiian)
¤ Ship breaking or salvaging operations of sunken ships/ sunken cargo.
Everything else is good, but that point of being in power circles is not a genuine investment, right?😂
sidwho wrote:Bonds and FDs, both give returns ranging from 6-8% as of now. But there are callable bonds too that can be redeemed before the maturity period. But what happens when you break your FD before the maturity period? You have to pay penalty charges and this is a huge drawback.
Cred gives 9% assured return (Credibility is concern, although I am using it)
Bonds do not give more than FD returns
Overnight funds/debts are lesser returns
Mutual funds are riskier and prone to losses too
Stocks are dangerous, unless you know what you're doing
Startup investing like tyke is also dangerous
Apart from this, which funds you recommend which are better than FD?
Rajkotian wrote:Agreed!!Investment must be diversified in all the fields on the basis of Liquidity, Return and Risk. Investing in any particular stream is not a good idea. One must have some cash on hand as well for the emergencies. You never know when ATM/Internet stops working!
Sahil_Jain wrote:Digital gold is the worst. For investing in gold, Sovereign Gold Bonds are much better than all other options.
And for another better investment option, I'd say digital gold. I know that we Indians have always preferred to buy physical gold and we feel secure in that way but you would know that the majority of gold that we have in India is imported from other countries. So even the government is promoting digital gold over the traditional method of buying gold. It might not be that rewarding as of now, but in the coming years, digital gold may become 'the thing'.
Sahil_Jain wrote:Just curious to know, are you investing in sites like jiraaf (invoice discounting and others), tyke (startups), p2p lending sites, cred etc?
Bonds and FDs, both give returns ranging from 6-8% as of now. But there are callable bonds too that can be redeemed before the maturity period. But what happens when you break your FD before the maturity period? You have to pay penalty charges and this is a huge drawback.
Mutual Funds are riskier and stocks just go to the next level, agreed. But just look at the bigger picture. If you filter the two major stock market indices, the Nifty and the Sensex for 8-10 years, you would see that the indices have always given positive results. So wouldn't you just pick some trustworthy stock from these indices and add them to your portfolio for a longer period of time? The problem is that people in India are willing to wait for their FD's maturity for even 10-15 years but expect the stock market to yield results the very next day, which is not reasonable, is it?
And just because people do not have proper knowledge about these things, we can't let them make wrong choices, can we? Stock markets are risky if we plan on investing for a short period of time and try to find some multi-baggers (biggest mistake).
Startup investing, well, is and always will be the riskiest investment in my opinion and we should consider many factors before doing that.
And for another better investment option, I'd say digital gold. I know that we Indians have always preferred to buy physical gold and we feel secure in that way but you would know that the majority of gold that we have in India is imported from other countries. So even the government is promoting digital gold over the traditional method of buying gold. It might not be that rewarding as of now, but in the coming years, digital gold may become 'the thing'.
Next up, I assume you know about ETFs. They provide better returns than FDs and are less risky than mutual funds too.
At present fd is good
Some banks offer upto 8%
For mid 40s
Mixing all of the investments
FD 10%
Gold 20%
Index fund 30%
Stocks 20%
Bond 20%
Snapz wrote:Everything comes with its fair share of positive and negative points. SGBs are safe and rewarding, agreed. But they have a fixed minimum lock-in period of 5 years in India. So that can be a huge drawback for many.
Digital gold is the worst. For investing in gold, Sovereign Gold Bonds are much better than all other options.
Sahil_Jain wrote:If someone wants a more liquid alternative to SGBs, then can go for Gold Mfs/ETFs or even physical gold. But digital gold is a strict no.
Everything comes with its fair share of positive and negative points. SGBs are safe and rewarding, agreed. But they have a fixed minimum lock-in period of 5 years in India. So that can be a huge drawback for many.
But yes, it is a really great investment option if someone needs to invest in gold.
marumuganainar673 wrote:Yup, a diversified investment would be a great idea for everyone.At present fd is good
Some banks offer upto 8%
For mid 40s
Mixing all of the investments
FD 10%
Gold 20%
Index fund 30%
Stocks 20%
Bond 20%
Sahil_Jain wrote:Yes..
Any particular reasons for not preferring digital gold?
Investment comes after the AAP (Asset Allocation plan) is fulfilled.
AAP = House , Car, Children education and children marriage expenses
All salaried people (and who do not have ancestral properties and wealth) should follow the above.
After every thing is fulfilled, get on to investment mode of your choice (low risk(MFs of stocks) /medium risk (Real estate)/high risk(Stock trading), if you still have money in hand.
Other than FDs/MFs/Stocks are business items (P2P lending/Invoice discounting etc).
One should decide, if one wants to do business or investment.
FDs mode should be used for just for few days to few months (parking the money for acquiring the asset)
But most of the salaried people do not follow AAP and start with FDs for years and Insurance policies, which is not correct.
Sahil_Jain wrote:Because there are some other investment options too that are almost as secure as a bank FD and would provide better returns too
But don't you think that's debatable? Because there are some other investment options too that are almost as secure as a bank FD and would provide better returns too. Wouldn't that be a smarter investment choice for everyone?
sidwho wrote:Cred gives 9% assured return (Credibility is concern, although I am using it)
Cred gives 9% assured return (Credibility is concern, although I am using it)
Bonds do not give more than FD returns
Overnight funds/debts are lesser returns
Mutual funds are riskier and prone to losses too
Stocks are dangerous, unless you know what you're doing
Startup investing like tyke is also dangerous
Apart from this, which funds you recommend which are better than FD?
Sahil_Jain wrote:
Bonds and FDs, both give returns ranging from 6-8% as of now. But there are callable bonds too that can be redeemed before the maturity period. But what happens when you break your FD before the maturity period? You have to pay penalty charges and this is a huge drawback.
Mutual Funds are riskier and stocks just go to the next level, agreed. But just look at the bigger picture. If you filter the two major stock market indices, the Nifty and the Sensex for 8-10 years, you would see that the indices have always given positive results. So wouldn't you just pick some trustworthy stock from these indices and add them to your portfolio for a longer period of time? The problem is that people in India are willing to wait for their FD's maturity for even 10-15 years but expect the stock market to yield results the very next day, which is not reasonable, is it?
And just because people do not have proper knowledge about these things, we can't let them make wrong choices, can we? Stock markets are risky if we plan on investing for a short period of time and try to find some multi-baggers (biggest mistake).
Startup investing, well, is and always will be the riskiest investment in my opinion and we should consider many factors before doing that.
And for another better investment option, I'd say digital gold. I know that we Indians have always preferred to buy physical gold and we feel secure in that way but you would know that the majority of gold that we have in India is imported from other countries. So even the government is promoting digital gold over the traditional method of buying gold. It might not be that rewarding as of now, but in the coming years, digital gold may become 'the thing'.
Next up, I assume you know about ETFs. They provide better returns than FDs and are less risky than mutual funds too.
And for another better investment option, I'd say digital gold. I know
that we Indians have always preferred to buy physical gold and we feel
secure in that way but you would know that the majority of gold that we
have in India is imported from other countries. So even the government
is promoting digital gold over the traditional method of buying gold. It
might not be that rewarding as of now, but in the coming years, digital
gold may become 'the thing'.
bad bad idea avoid at all costs. it is all digital not backed up by anything.
Next up, I assume you know about ETFs. They provide better returns than FDs and are less risky than mutual funds too.
liquidity concerns?it does have low ter though. + @Ramta_Jogi
Sahil_Jain wrote:paji investing in domestic and foreign equities?
Bonds and FDs, both give returns ranging from 6-8% as of now. But there are callable bonds too that can be redeemed before the maturity period. But what happens when you break your FD before the maturity period? You have to pay penalty charges and this is a huge drawback.
Mutual Funds are riskier and stocks just go to the next level, agreed. But just look at the bigger picture. If you filter the two major stock market indices, the Nifty and the Sensex for 8-10 years, you would see that the indices have always given positive results. So wouldn't you just pick some trustworthy stock from these indices and add them to your portfolio for a longer period of time? The problem is that people in India are willing to wait for their FD's maturity for even 10-15 years but expect the stock market to yield results the very next day, which is not reasonable, is it?
And just because people do not have proper knowledge about these things, we can't let them make wrong choices, can we? Stock markets are risky if we plan on investing for a short period of time and try to find some multi-baggers (biggest mistake).
Startup investing, well, is and always will be the riskiest investment in my opinion and we should consider many factors before doing that.
And for another better investment option, I'd say digital gold. I know that we Indians have always preferred to buy physical gold and we feel secure in that way but you would know that the majority of gold that we have in India is imported from other countries. So even the government is promoting digital gold over the traditional method of buying gold. It might not be that rewarding as of now, but in the coming years, digital gold may become 'the thing'.
Next up, I assume you know about ETFs. They provide better returns than FDs and are less risky than mutual funds too.
Snapz wrote:Agreed!
Yes..
1. GST @ 3%
2. Not regulated, can’t make sure that actual gold is bought by the provider company
Check this for more details- https://www.financialexpress.com/money/digital-...
ramadesidime wrote:Fully agreed!!Investment comes after the AAP (Asset Allocation plan) is fulfilled.
AAP = House , Car, Children education and children marriage expenses
All salaried people (and who do not have ancestral properties and wealth) should follow the above.After every thing is fulfilled, get on to investment mode of your choice (low risk(MFs of stocks) /medium risk (Real estate)/high risk(Stock trading), if you still have money in hand.
Other than FDs/MFs/Stocks are business items (P2P lending/Invoice discounting etc).
One should decide, if one wants to do business or investment.FDs mode should be used for just for few days to few months (parking the money for acquiring the asset)
But most of the salaried people do not follow AAP and start with FDs for years and Insurance policies, which is not correct.
Sahil_Jain wrote:
Agreed!
A form of investment not being regulated by a Gov body is risky. But doesn't it sound very similar to cryptocurrency? I'm not saying that it's fully safe...but it still has some level of security. And there are some benefits of Digital Gold too, maybe we should consider both sides before coming to a conclusion: https://groww.in/blog/why-should-you-consider-b...
Digital gold can be considered as improvement over physical gold, assuming that the respective company doesn’t do any fraud or malpractice.
But digital gold as gold investment doesn’t make sense, simply because 3% return is automatically reduced by GST charges.
In conclusion, better to avoid digital gold, because better options exist.
kukdookoo wrote:Agreed, ETFs have lower liquidity. But literally, every type of investment has its flaws and perks, right? Since the topic here is about FDs, let's take their example. They have a fixed lock-in period that you can not break and if you do, you have to pay a penalty. That lock-in period is really long too and the returns that you get do not have that high time value, do they?And for another better investment option, I'd say digital gold. I know
that we Indians have always preferred to buy physical gold and we feel
secure in that way but you would know that the majority of gold that we
have in India is imported from other countries. So even the government
is promoting digital gold over the traditional method of buying gold. It
might not be that rewarding as of now, but in the coming years, digital
gold may become 'the thing'.
bad bad idea avoid at all costs. it is all digital not backed up by anything.
Next up, I assume you know about ETFs. They provide better returns than FDs and are less risky than mutual funds too.
liquidity concerns?it does have low ter though. + @Ramta_Jogi
At present fd is good
Some banks offer upto 8%
For mid 40s
Mixing all of the investments
FD 10%
Gold 20%
Index fund 30%
Stocks 20%
Bond 20%
Investment comes after the AAP (Asset Allocation plan) is fulfilled.
AAP = House , Car, Children education and children marriage expenses
All salaried people (and who do not have ancestral properties and wealth) should follow the above.
After every thing is fulfilled, get on to investment mode of your choice (low risk(MFs of stocks) /medium risk (Real estate)/high risk(Stock trading), if you still have money in hand.
Other than FDs/MFs/Stocks are business items (P2P lending/Invoice discounting etc).
One should decide, if one wants to do business or investment.
FDs mode should be used for just for few days to few months (parking the money for acquiring the asset)
But most of the salaried people do not follow AAP and start with FDs for years and Insurance policies, which is not correct.
Bonds do not give more than FD returns
Overnight funds/debts are lesser returns
Mutual funds are riskier and prone to losses too
Stocks are dangerous, unless you know what you're doing
Startup investing like tyke is also dangerous
Apart from this, which funds you recommend which are better than FD?