SIP/MF/FD or Property - Which are the best investment options ? (Condidering - Age, Risk, Duration and Goal)

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Last Comment 2023-01-27

2023-01-15

-------------- SIP meant ULIP in this discussion ----------------------

Let us consider Moti is 23 years old and got his first job say 3.2 Lpa (22.5 k In Hand post deductions like PF Medical etc). Note: At this salary Moti does not pay any income tax.

He stays at a Metro City like bengaluru and prefers to stay at a PG with his office friend (8.5k two sharing + Food). He is now left with 14k. He uses 1500 for his cab bills or public transport for office commute. Another 1500 for his travel to his hometown , to & fro.

He saves money by doing exercise at home and eating healthy food instead of paying for cultfit one year membership and barely visiting.

Assuming he spends 12 over a year on his clothing expenses (Cloting/Shoes/Sunglasses etc)

All in, Moti is left with 10k

Now, if Moti is wise and visionaly, he would play safe by investing in SIP's (ULIP). 5k permonth for 10 years. He is still left with 5k per month for vaction, gifts for his parents sibblings.

Reason:

1. He doesn't have lumpsum money to invest in MF

2.Doesn’t have money to Invest in property

3. Returns in LIC or FD where returns are fixed are very low over 10 year period.

4. Moti will need lumpsum money here.Investing in FD'd like UCD, AU etc other banks which give high returns luke 8.5% is bit risky. This is taxed but Miti will not have to pay

5. Longterm benefits, in SIP, say 10yrs are astonoshing.

6. Stock market - too risky, hit or miss. If it is a miss it turns out to be a waste of time

7. Most important, returns in SIP (ULIP)are Tax Free under section 10 (10D) of Income Tax Act, 1961 *

He stays in the same company which pays him hike 5% per year, but he learns a lot. Stay's away from the three distractions mobilephones, alcohol/drugs/smoke and most important is WOMEN. He makes his first move with a raised salary of 12 Lpa. Everything now changes for him. This is a different story..stay tuned. this situation has more options, will discuss in comments if needed.

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https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029644

mandass

2023-01-15

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Baaap wrote:
OP, Women distraction? I heard behind every successful man there's a Women..

that one women is you mother who stands for you at every stage of your life.
After every unsuccessful man there are multiple women, this is because of distraction.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029647

mandass

2023-01-15

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Baaap wrote:
Gundas Politician factors could you detail?

Buy flat in that case from reputed builder. This will cost a bit more but will save you from mental stress from local gundas and politicians.

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https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029571

kukdookoo

2023-01-15

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Moti needs to calm down first then moti needs to understand that point 4(if good banks are chosen),5,6 and 7 don't make sense.moti should invest in crypto or gold if he thinks like that. Moti's age is perfect to start a sip fpr 2.5-4k in index funds and invest the rest in it too if moti has money left at the end of month. Kya naan rakha dost moti.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029580

yolodime

2023-01-15

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Avoid property at all costs. Too many factors not in your control plus all goondas & political interference as well.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029586

kukdookoo

2023-01-15

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yolodime wrote:
Avoid property at all costs. Too many factors not in your control plus all goondas & political interference as well.

Yaar vo baatein sunke achi lagti hai ki mere dade ne 10 lac ki property kharidi 20 saal pehle aj 5 crore ki.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029590

Jarvis.-.

2023-01-15

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7. Most important, returns in SIP are Tax Free under section 10 (10D) of Income Tax Act, 1961 *

what?

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029598

Baaap

2023-01-15

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yolodime wrote:
Avoid property at all costs. Too many factors not in your control plus all goondas & political interference as well.

Gundas Politician factors could you detail?

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029603

Baaap

2023-01-15

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OP, Women distraction? I heard behind every successful man there's a Women..

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029644

mandass

2023-01-15

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Baaap wrote:
OP, Women distraction? I heard behind every successful man there's a Women..

that one women is you mother who stands for you at every stage of your life.
After every unsuccessful man there are multiple women, this is because of distraction.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029647

mandass

2023-01-15

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Baaap wrote:
Gundas Politician factors could you detail?

Buy flat in that case from reputed builder. This will cost a bit more but will save you from mental stress from local gundas and politicians.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029671

CMGG

2023-01-15

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Imo, Property will be the best if you can afford it, the inflation is very high at this point so loan might look expensive but once things are settle down then you can see more benifits.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029682

legend101

2023-01-15

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Jarvis.-. wrote:
7. Most important, returns in SIP are Tax Free under section 10 (10D) of Income Tax Act, 1961 *

what?

That section is for amount recieved from term insurance after death.

I think OP meant 1lpa tax free long term gains for equity sip

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029698

24karat

2023-01-15

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yolodime wrote:
Avoid property at all costs. Too many factors not in your control plus all goondas & political interference as well.

One shld have his/her own property in my opinion....property as an investment is not the best option but having ur own roof over ur head does give peace of mind...ofcoz u need to work out financials considering ur current financial condition upcomming commitments..repayment capabilities before taking dis big decision

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029712

mandass

2023-01-15

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24karat wrote:
One shld have his/her own property in my opinion....property as an investment is not the best option but having ur own roof over ur head does give peace of mind...ofcoz u need to work out financials considering ur current financial condition upcomming commitments..repayment capabilities before taking dis big decision

That is when you have enough money for downpayment and enough salary to payoff loan ASAP.

Yes, property is best investment if it is your second property and earning you rent every month, make sure that the rent is somene who does not pay taxes in your family to maximise profits.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029714

mandass

2023-01-15

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legend101 wrote:
That section is for amount recieved from term insurance after death.
I think OP meant 1lpa tax free long term gains for equity sip

Nope. I did not mean that.

Returns if SIP (ulip) are tax free. Google for more

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029782

guest_999

2023-01-15

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mandass wrote:
Nope. I did not mean that.

Returns if SIP (ulip) are tax free. Google for more

ULIPs also have worst returns among similar instruments so whatever you save in tax is offset by whatever you lose in terms of return.
@Ramta_Jogi

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029828

mandass

2023-01-15

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guest_999 wrote:
ULIPs also have worst returns among similar instruments so whatever you save in tax is offset by whatever you lose in terms of return.
@Ramta_Jogi

The ULIP that I had started in 2016 is now at 12% annual returns, managed by exide now hdfc, this is still ongoing.

The one I started in 2018 is now at 9% annual (absolute 40%) approx. this is managed by me.

the silver lining here is none needs lumsome ammount. The first was 8k per month and the second is 10k per months.

Isn’t that handsome return without taxes ?

If not please suggest better options. I don’t mind taking advices from young ones. You guys are probably smarter.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029830

saxena_

2023-01-15

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If Moti is wise and visionary, he will stay away from ULIPs and anyone who is dumb enough to recommend ULIP. Absolute worst "investment" instrument

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029832

saxena_

2023-01-15

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mandass wrote:
The ULIP that I had started in 2016 is now at 12% annual returns, managed by exide now hdfc, this is still ongoing.

The one I started in 2018 is now at 9% annual (absolute 40%) approx. this is managed by me.

the silver lining here is none needs lumsome ammount. The first was 8k per month and the second is 10k per months.

Isn’t that handsome return with taxes ?

If not I’ll lease give better options. I don’t mind taking advices from young ones. You guys are probably smarter.

Simply investing in basic nifty 50 index would have fetched you a much much higher return, which would have been higher even after deduction of taxes on it

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029854

guest_999

2023-01-15

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mandass wrote:
The ULIP that I had started in 2016 is now at 12% annual returns, managed by exide now hdfc, this is still ongoing.

The one I started in 2018 is now at 9% annual (absolute 40%) approx. this is managed by me.

the silver lining here is none needs lumsome ammount. The first was 8k per month and the second is 10k per months.

Isn’t that handsome return with taxes ?

If not I’ll lease give better options. I don’t mind taking advices from young ones. You guys are probably smarter.

A typical large cap MF returns which isn't even considered top performing(right click on image & open in new tab, if resolution seem small then change "medium" in image url in browser address bar to "original" & reload the link).

Nippon India Large Cap Fund - Direct Plan - Growth Returns | Returns - Moneycontrol

@Ramta_Jogi

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029862

mandass

2023-01-15

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saxena_ wrote:
If Moti is wise and visionary, he will stay away from ULIPs and anyone who is dumb enough to recommend ULIP. Absolute worst "investment" instrument

Well mate, you have a long long way to go.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029903

saxena_

2023-01-15

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And mate you have already lost your "way" if you think ULIPs are the best investment instrument joy . Wondering why you didn't reply to the guy who shared his large cap MF returns 🤔

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9029905

saxena_

2023-01-15

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mandass wrote:
Well mate, you have a long long way to go.

And mate you have already lost your "way" if you think ULIPs are the best investment instrument joy . Wondering why you didn't reply to the guy who shared his large cap MF returns 🤔

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9030037

mandass

2023-01-15

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saxena_ wrote:
And mate you have already lost your "way" if you think ULIPs are the best investment instrument . Wondering why you didn't reply to the guy who shared his large cap MF returns 🤔

Well, he had a pretty good point.

I invest lumpsum there in MF. But a guy who started new cannot do what I do. Nifty50 or MF needs funds. I churn as much as 40/45 % over 300000 investment using my retired dad’s account (to evade stcg or ltcg). I can’t expect that from a guy who ho has just started with the CTC equivalent to part of my investment.

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9030040

mandass

2023-01-15

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kukdookoo wrote:
Moti needs to calm down first then moti needs to understand that point 4(if good banks are chosen),5,6 and 7 don't make sense.moti should invest in crypto or gold if he thinks like that. Moti's age is perfect to start a sip fpr 2.5-4k in index funds and invest the rest in it too if moti has money left at the end of month. Kya naan rakha dost moti.

Well said mate. ULIP are for long term goals. Moti still has 5k for taking risks untill he goes into bank loa debts

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9030043

mandass

2023-01-15

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mandass wrote:
The ULIP that I had started in 2016 is now at 12% annual returns, managed by exide now hdfc, this is still ongoing.

The one I started in 2018 is now at 9% annual (absolute 40%) approx. this is managed by me.

the silver lining here is none needs lumsome ammount. The first was 8k per month and the second is 10k per months.

Isn’t that handsome return without taxes ?

If not please suggest better options. I don’t mind taking advices from young ones. You guys are probably smarter.

@saxena

Have a look at this

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9030076

abhi1047

2023-01-15

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Did moti write this post after taking Red label 🤣 joy

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9030099

The_Dark_Knight

2023-01-15

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Elss is your answer.. Starts axis / Mirae tax saver fund with what ever find you want to.. Later increase amount / invest in others as per your salary

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9030131

yolodime

2023-01-15

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kukdookoo wrote:
Yaar vo baatein sunke achi lagti hai ki mere dade ne 10 lac ki property kharidi 20 saal pehle aj 5 crore ki.

bas sunn kar hi achha lagta hai

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9030147

Ramta_Jogi

2023-01-15

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Sip is not ULIP. You should edit your post and write ULIP

https://www.desidime.com/discussions/sip-mf-fd-or-property-which-are-the-best-invest-options-condidering-age-risk-duration-and-goal?page=1#post_9030164

mandass

2023-01-15

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