Is Future Group going down?

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Deal Subedar
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1. Monthly coupons of 250/200/150 off on 1000 at big bazaar

2. 2000 cb (200 * 10 months) for buying 2000 worth apparel at big bazaar.

3. 2500 cb (250 * 10 months) for buying 3k worth apparel at brand factory.

4. 1500 cb (500 * 3) on adding 5000 into future pay wallet

5. 1500 cb on adding 5000 into central wallet.

6. Future group FD at arounf 11.6% P.A which is way too high than the current market rates
https://www.financialexpress.com/money/future-g...

I understand these offers will make sure they have more footfall at their stores in the coming quarters and hoping people will buy more than the cb amount of 200/250 per month, but these deals were never heard of by established offline players.

Is this the group doing a last attempt to compete with online stores (fashion and grocery) by gathering funds at expensive rates and buring in name of cashback or do you see this is a good strategy which would pay off in the long run?

Side question: how safe to invest in future group FD now? smile

18 Comments  |  
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Deal Subedar
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We need to go to Big Bazaar in order to buy this CFD?

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Deal Subedar
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sardasa wrote:

We need to go to Big Bazaar in order to buy this CFD?

Yes, any of the future group stores. I have personally seen them in bigbazaar store.

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Critic
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11.60% is a juglary of figures. the actual annualised yield is 10.48%
the instrument rating is AA- which is not that high and it is unsecured.

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suspended
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panchabhut wrote:

11.60% is a juglary of figures. the actual annualised yield is 10.48%
the instrument rating is AA- which is not that high and it is unsecured.

Many of us still fall for this trap eyeing few peanuts thrown at us.

People will invest, will get interest but they aren’t bothered about the principal they are invested.

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Deal Subedar
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panchabhut wrote:

11.60% is a juglary of figures. the actual annualised yield is 10.48%
the instrument rating is AA- which is not that high and it is unsecured.

I understand AA- is not a great rating, do you still think investing in future group may result in capital loss? even 10.48 is not bad considering banks are still around 7-8%.

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Deal Subedar
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eshoppingfreak wrote:

Many of us still fall for this trap eyeing few peanuts thrown at us.

People will invest, will get interest but they aren’t bothered about the principal they are invested.

What makes you feel that principal will not be returned and only interest will be returned.

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Deal Subedar
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They are doing this to attract America’s Amazon and Japan’s 7/11 to invest in the company.

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Deal Subedar
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G-Gowda wrote:

They are doing this to attract America’s Amazon and Japan’s 7/11 to invest in the company.

Plz elaborate

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Deal Subedar
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G-Gowda wrote:

They are doing this to attract America’s Amazon and Japan’s 7/11 to invest in the company.

7/11 already announced its investment plans.

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jainashish85 wrote:

I understand AA- is not a great rating, do you still think investing in future group may result in capital loss? even 10.48 is not bad considering banks are still around 7-8%.

Investment decisions are based on several factors and differ from person to person based on their financial profile. Unless you have lot of money as surplus, this is definitely not a very good option.
The income tax applicability also is a decision factor. The returns from such FD are also taxable. Even if you are in 20% bracket, then that makes the effective return around 8.36%,that too unsecured. On the other hand, if you put the money in a high rate savings account like DBS digibank, you get 7% and also tax exemption on interest upto 10000 from all savings account together. Further, deposits upto 1 lakh per bank in savings accounts are secured by RBI. IF you do not need the money for immediate future, you can even put it in PPF and get 8% tax free.

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Deal Lieutenant
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The news is already out they are working with 7-11 groups to provide 24×7 shopping experience…

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Deal Subedar
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The investment is for FEL future enterprise limited and no future retail that we all are discussing.

Future group playing smart by using their brand value in one segment and feeding other businesses

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Deal Subedar
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panchabhut wrote:

Investment decisions are based on several factors and differ from person to person based on their financial profile. Unless you have lot of money as surplus, this is definitely not a very good option.
The income tax applicability also is a decision factor. The returns from such FD are also taxable. Even if you are in 20% bracket, then that makes the effective return around 8.36%,that too unsecured. On the other hand, if you put the money in a high rate savings account like DBS digibank, you get 7% and also tax exemption on interest upto 10000 from all savings account together. Further, deposits upto 1 lakh per bank in savings accounts are secured by RBI. IF you do not need the money for immediate future, you can even put it in PPF and get 8% tax free.

Finally have decided to not go for this risky investment and partly invest in PPF.

Already have digi bank account and hitting 10k/ year.

Any other suggestions?

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Deal Subedar
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Glad, I didn’t opt for Future Group FD, does anyone know what would happen to the people who had invested in case Mota bhai buys future retail.

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Deal Subedar
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jainashish85 wrote:

Glad, I didn’t opt for Future Group FD, does anyone know what would happen to the people who had invested in case Mota bhai buys future retail.

Nice analysis @jainashish85 you predicted a year earlier.

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Deal Captain
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jainashish85 wrote:

Glad, I didn’t opt for Future Group FD, does anyone know what would happen to the people who had invested in case Mota bhai buys future retail.

Check the history of reliance, what they did with old customers like reliance 4g, big tv, etc.

The history itself talks

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