Are Bank FDs Worth Your Time & Investment?
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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.
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can u explain how to invest in all these and how much return we can expect,i know about invoice discounting
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!
People generally ignore this simple yet important aspect of investment.
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.
We really need to plan things before making any investment decisions.
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.