Need to invest 30 Lakhs. Is Debt market good ?

You can mention, minimum and maximum period of your investment

I think Debt funds attracts more tax…

Expecting Mkt will remain bullish for couple of years.. Bt its risky

Gold also high

So U may consider property

Or divide among all asset as per ur risk appetite n tenure of investment

I already bought a property year ago.
Also having gold.
Also having sufficient Fixed Deposits.

Itna amir hokar dd pe kya kar rahe bhai ?

U can lend me at 1% monthly.

Risk hai to iska hai

Buy hdfc shares

@3.5g Divide and invest.

You can go as per below suggestion

SGB (gold bonds) – 20% (6lakhs)
RBI bonds – 40% (12lakhs)
Debt Funds Direct plans – 20% (6lakhs)
IDFC / Equitas savings account – 20% (6lakhs)

SGB Not to be invested in one shot, can break in 2-3 tranches.

Let me know if you want to invest in above …I can distribute SGB & RBI bonds, will earn some commission which will not go from your pocket.

Ask the agent which debt fund is he referring for 7% interest?
AFAIK you should divide the money between fd’s, gold (no quantity is enough), debt fund, hysa etc. + @Sudarshan61 @drjpatwa

@guest_999 @R0417 @DimeDime
How is this equitas small finance bank as mentioned by a user?

You can go for post office fd, NSC and kvp. It will be safer than most other options also keep in mind what happend with franklin may happen with any other debt oriented funds

What’s your age? Based on that I can suggest some good options.

Debt funds also carries the risk of getting defaulted. Actually there are different kinds of debt funds and there are some good horror stories associated with them. Nothing is risk free

Those who suggest Gold as investment …. have a thought on below
Gold Price 2021 ~ 1800 USD/Oz
Gold Price 2016 ~ 1100 USD/OZ
Gold Price 2011 ~ 1400 USD/OZ
Gold Price 2006 ~ 550 USD/OZ

if one calculate 20 years return from 2006 it is around 6% CAGR, lets shorter the duration to let say 10 returns returns are just 2.5% CAGR..and yes this is pre inflation and tax returns.. Gold as International Commodity it is important to consider it in USD terms ..

We indians believe Gold investment mainly due to two reasons 1. sentimental 2. Rupee depreciation(2001 USD was around 45 Rs today it is around 75 Rs)..non of the Indian analyst Govt/RBI will tell you about point 2. …as Investor think wisely …will such Rupee depreciation continue forever??

this year’s budget has seen highest borrowings and unrealistic earnings therefore 10 year yield went from 5.8 levels to 6.15 on friday (closed 6.07). also inflation will drastically go up as 1 of the 3 farm laws in dispute, essential commodity act has allowed a businessman to hoard any perishable and non-perishable item, also pulses and fuel prices going up.

therefore in coming days bond prices will only go upwards (bond prices are opposite to equity, if price goes up it means there is notional loss, if price goes down it is beneficial) hence it is not a good idea to put money in debt funds. what you can do is, check 10 year yield and once it is near 6.5 range, invest in chunks not fully. ideally in long term bonds should range between 7.5-8 in country like india as we are still far away from low rates era, should take atleast 40-50 years if i havw to take a wild guess since rupee needs to be strong, internal saving should increase and inflation should stay such way that a poor can afford daily livelihood comfortably.

if you are comfortable with taxes, you can invest in bharat bond of 2023 and increase amount by switching to 2031 slowly as bond prices will rise. current price does not represents markets real state and have gone too low too soon due to rbi’s stupid decisions of rate cuts under political pressure. now that after corona sanity is coming back there is almost nil chance of rate cuts, nil chance of aggressive buying (rbi allowed direct buying of gilt from them which will anyways fail badly), almost no omo in coming months as rbi has done it’s quota for financial year, increase in loan rates as demand crops up in real state and so on….

hence there are more negative than positive. yes there are good chances in short term and corporate funds but there is risk of default due to corona’s financial stress too involved. take your decision wisely, if possible stay away till bond hits 6.5-6.75 range. till than volatility will not let you sleep. plus bond market is for real man and requires heart of steel and if you can’t live with volatile risk, don’t invest in them. good luck.

Don’t invest in any fund through agent, always opt for direct funds.

If you are investing for at least 8 years, you can consider sovereign gold bonds, which will give you 2.5% additional gains annually. Plus capital gains are tax free.

Other than this, as you mentioned you can go for debt funds but direct funds only. Coming towards returns, it all depends on interest rate risk. In a falling interest rate market, it’ll generate high returns in propositional to it’s duration, and vise versa. The longer the duration of the bond, as volatile it will be to interest rate changes.

buy a shop or commercial space like office from preferably your state’s housing board or development authority. commercial property prices have been booming since corona as there is huge migration, loss of jobs etc and many folks out there want start own business. but strictly in tier 2 and 3 towns and not metros/big cities. there is heavy demand in tier 2 and 3 and good supply in tier 1 and metros. 2nd best can be plots in small towns or agriculture land near tier 2/3 cities. since real estate is seeing time adjusted inflation (prices are steady since many years or went down), there is good possibilty of trend change. these days kids play in stock market, adults in debt markets and legends are already in real estates.

Divide this among 6 family members with 5 lakh each & keep in idfc savings acc at 6% interest rate, best option as far as safety is concerned. Don’t risk this amount for some measly profit as it is not worth it. If you really want to earn good return then you must invest it in MFs with a 10+ years period in mind or in real estate if you think you can handle it(managing real estate is not a piece of cake especially in states like UP, Bihar etc).

1. Land in developing areas.
2. Residential/Commercial Property -Put on rent
3. Keep looking for any business opportunity (Where investment and returns are safe)
4. Bonds/FDs
5. MFs/Debt funds
6. Savings for emergency funds

Few suggestions based on my experience
1. Bank FD with sr citizen – will give 7%+ return
2. Company FD with good rating is good option. I tried Muthoot gold finance earlier with my parents name. Can yield ~8%
3. PPF – start investing early as possible, even with 1000 rs a year. After 5 yr you will have option to partially withdraw.
4. Increase EPF/VPF, if you are working professional
5. Buying property is not worth investment as rental returns are peanuts compared to capital investment. Can consider land purchase if can monitor.
6. Sukanya smirdhi or sr citizen saving scheme can give ~7.5%.

There can be more avenues.

BTW I don’t believe in this guy, wether saying right or wrong.
Such amount should be invested with proper advise by advicer.

Everyday i see many posts on investments and suggestions.
Am I the only ony garib here looting munch/centre fresh/kitkat free cash and is satisfied? @Siddhartha07 @Nationalist tag more folks who are  doing this from a couple of days
Jug jug jiyo
#AA_JJ

You should be careful in this unpredictable world.
You are opening doors for some dangers…like https://economictimes.indiatimes.com/topic/Kidn...
Just 5lacs(amount) too would have got same suggestions
Open Equitas account and keep for a while.
Purchasing another house/plot is best option for your profile.
Allocate 1-2 lacs for equities and start your journey! Goodluck!

Biggest risk in debt fund is interest rate cycle and if one is not fimiliar with what’s really goes around and not tv or whatsapp shows, he should stay away.

For example back in Oct 2017 I started putting money in debt funds, in December end I was wholely into gilts then when they were 8.5-8.7% rate

https://www.desidime.com/discussions/ipos-in-oc...

And later market took u-turn and this came as one of the best bet for me. From end of 2018 I secured most money in FDs by small finance banks at 9-9.5 and now happy to see rates at 5-6% being offered.

One has to read rbi’s meetings papers (can be found on rbi site), concalls and results like bajaj finance and hdfc and be aware of macro finance of nation. Also have friends who owns shops like kirana or cloths to gauge inflation in real sense and not what govt gives, just today i met a big kirana merchant and he told that prices have gone up nearly 10-15% in all food grains.

Plus check whenever rbi announces omos and keep excel of how much was spent and how much is left, they tell beforehand that how much they will buy. Debt ia secure but volatile yet requires continue study and it’s not everyone’s cup of tea. One should stay with ultra short or short term funds that have more than 100 papers in portfolio to save default risk of 1 company so amount is divided by fund manager in many bonds. This can be attain in valueresearch or monthly fachsheet.

The real truth : OP is losing 30k per month which may be equivalent to one month salary for some dimers here.

Always invest to beat the inflation.
DO NOT KEEP money in banks, fd. cd, mf etc. (Not applicable to rich guys) .

Either invest in shares/businesses > High risk (Gain at least 24% every year or lose every thing)
OR
Invest in house/plots/flats/lands > Low risk/no risk (Gain at least 18% every year)
OR
Invest in banks, fd. cd, debt mf > Zero risk on paper but the reality is different (Lose your money when time passes, which itself is a BIG HIGH risk, if the tenor is >10 years)

best option is to buy space for putting on rent for shop etc

Dear @3.5g , pls share once you finalize the avenues to invest

@3.5g what kind of tax bracket are you in? that would determine the most suitable low risk investment

Markets are not high. It’s our basic folly to “emotionalize and humanize” markets. They have run up because of 20% increase in Capex announced by Govt. this budget and also by many cyclical industries/companies. 4 sectors are down still. For next 2 years Equities are best bet.

Mutual Funds too would give u good returns.

But if you are scared shit less with volatility, then stick to 7% FD assured returns. Debt market instruments don’t give you assured returns. Your agent is a moron if he is giving you that assurance and a double moron if he is comparing FD with debt funds. Taxation is huge difference. TDS on FD is not ‘Tax’ in pure terms.

Past returns of debt would be high coz of never before seen covid induced disruptions leading to highest ever liquidity flow in economy and lowest ever interest rates. Interest rates will rise in 2~ years.

How about putting the money in some immediate annuity plans?
There are plans which pay at an increasing rate of 3% p.a. till the assured is alive.
(Eg: LIC Jeevan Akshay VII → Option G)

The current return may look lower now (like 4-6%). But you will get the same rate for your lifetime.
I think the FD rates will reduce to 2-3% in the upcoming years and will touch 0.5 – 1% like western countries once India gets more developed.

Money in hand/ bank is the money you have … otherwise sahara india is doubling the money in 6 years .

Missed a point here n unable to edit my post. Debt funds would help u more than FD if u r in top bracket for income tax. Also, expect interest rates to rise from second half of this year/3rd quarter onwards and not in 2 years.