SERIOUS HELP NEEDED REGARDING INVESTMENT !!
• Guys , i posted a discussion forum recently , about how LIC is very a bad investment … i explained how mutual funds are better than LIC , some people messaged me that it helped them and now they have stopped LIC ….
• But the thing is that , my father has been told by many of his friends , that SIP mutual funds is gamble and all , he can even loss his invested money , ( I am talking about blue-chip large Cap companies SIP , or you can take index funds too , that too for a very long period of time almost 30 years , risk becomes almost zero ) … I got his point , he wants risk free investment …
• We are paying , very big premium every year in LIC , as no. of LIC we had opted , are way more than i thought … i calculated we are getting only around 7% returns , which is really low as policies are for very long term ( around 30 years ) and principle money is also big …
• Guys what would be the best alternative now , I want an option which is almost risk free and give more than 8% returns … As of now i can only think of PPF , if you know better option , please please reply …
NOTE :-
a) Stocks and Mutual funds aren’t option as they aren’t risk free …
b) he himself wants to know if there are any other better alternatives , I am not forcing ( lol , as many thinks ) … we are family , please think before commenting …
He isn’t interested in gold and for investing in real estate you need huge lump sump money , we are paying big premium to LIC every year , but not this much that we can invest in real estate instead ….
Gold and Land(Real Estate)
Gold moves along with inflation rate, no profit and no loss
I’m not an expert here
Edit: Didn’t see the above comment, totally coincidental.
Well then gold wouldn’t be a nice option , as we are looking an option to grow money , not just save … If only want to save , then I guess LIC is very good option , as money just moved with inflation rate and it also get locked for a long term …
If you are looking at 8% expected return, then have a look at short term debt funds.
Buddy I thought of that , but I think my father won’t consider it any different from SIP … His friends will still say that it’s mutual funds you can lose money ….
you can create FDs/RDs for relatively lesser time
some banks offer good rates
Bro no banks give more than 8% … Most of them give around 7%
Do nothing. Why do you want him to do what you think is right. Let him invest his money wherever he wants. And he is right. There is always risk involved with MF however low it is and it can’t be avoided.
Bro when I told my dad that LIC isn’t best option as investment , he himself has asked me for better options , but he disagree with mutual funds option , that’s why I asked if anybody knows other better alternatives …
End Decision depends on him , but he wants me to find the best options , if he agrees to my point , he will stop LIC and invest in that …
I guess you missed my point , or maybe it’s because of my English …
The question is not to make him convince somehow to invest in mutual funds … question is to find better alternative than LIC ( endowment plans ) …
If you ask me it’s equity..
Bro he doesn’t want to invest in mutual funds … I got your point though , if you were in his place you would have invested in equity
Invest your own money. Don’t force him to do unnecessary hassle when clearly he doesn’t want. And we both know he must be doing most of the things just as you want from the time you were born
yes PPF is best risk free option with best interest rate. ( though few banks give almost similar FD interest as of PPF)
You can see NSC or saving plans from post offices.
Thanks
PPF or liquid funds
PPF.
You can also open a Kisan Vikas Patra Account at your nearest Post office.
From 01.07.2019, interest rates are as follows:-
7.6 % compounded annually
Amount Invested doubles in 113 months (9 years & 5 months)
Minimum of Rs. 1000/- and in multiples of Rs. 1000/- No Maximum Limit.
-——-
Or
National Savings Certificates (NSC) is also a good option.
Below are details.
https://www.indiapost.gov.in/Financial/pages/co...
kvp is not a good option since 10 113 months and not tax benifit
better ppf (15Year) 80c + interest is tax free
if you falling in Tax bracket
If you a secured and better rate of return then you can consider NCDs (Non Convertible Debentures). these NCDs are mostly secured and can be trusted. for example Shriram Transport Finance Co. Ltd offers around 9.7% effective rate of return on investment
https://www.icicidirect.com/mailimages/ic_Shrir...
for more information on NCDs
Non-convertible debentures are simply regular debentures, cannot be converted into equity shares of the liable company. They are debentures without the convertibility feature attached to them. As a result, they usually carry higher interest rates than their convertible counterparts.
NCDs might be the answer to your quest for the investment instrument that offers high returns with moderate risk while giving you the flexibility of choosing between short and long tenures.
An NCD can be both secured as well as unsecured. For secured debentures, which are backed by assets, in case the issuer is not able to fulfil its obligation, the assets are liquidated to repay the investors holding the debentures.
Secured NCDs offer lower interest rates compared with unsecured ones. If you want a regular income from NCDs, you can pick those that pay interest on a monthly, quarterly or annual basis. If you just want to grow your wealth, you can opt for cumulative option where the interest earned is reinvested and paid at maturity.
Companies seeking to raise money through NCDs have to get their issue rated by agencies such as CRISIL, ICRA, CARE and Fitch Ratings. NCDs with higher ratings are safer as this means the issuer has the ability to service its debt on time and carries lower default risk.
TAX IMPLICATIONS
Interest earned through NCDs, if held until maturity, is clubbed with your income and taxed at your marginal income tax rate. If you sell your NCDs on the stock exchange before a year then you will have to pay short-term capital gains at income-tax rates applicable to you. If the debenture is encashed after one year but before its maturity, you will have to pay long term capital gains tax on the effective return at applicable rates.
Why not PPF? No govt authority can even touch it
Go for company deposit or NCD of highest standard companies like Hdfc, tata, Mahindra.
Ofcourse not 100% safe but 99% safe with such standard company…
Otherwise for 100% safe & good return, go for ppf
Start with PPF. It is most secured investment with EEE benefits. If you invest the full money ( 1.5 L every year by 1-5 April ) you will get max benefits. One of the best example of compounding !
Benefits of PPF
1. The risk factor in PPF investment is low as it is backed by the government.
2. A PPF account can be opened at nationalised banks, public banks, post offices and selective private banks, all of which have a wide reach.
3. Although the lock in period is 15 years for a PPF, there are provisions to either withdraw some money or take loans after 7 years. The returns from a PPF is more attractive compared to the bank FDs.
4. PPF deposits fall under EEE (exempt-exempt-exempt) category. Which means, the principal invested, the interest earned and the proceeds received at maturity are all tax exempt. Amounts deposited in spouse’s or child’s PPF account are also tax exempt.
Another option – If you father is 60+, you may like to explore Senior Citizen Savings Scheme (SCSS ) – https://www.paisabazaar.com/saving-schemes/seni.... It is also very secured and offer quite good rate of interest.
PPF vs ELSS? which is better option e.g Aditya Birla tax relief 98.. I know op didn’t asked for equity.. I am just curious to know (absolutely for long term 20 years+)
PPF is safest bet . No risk at all.
How much health insurance is adequate for a average family constisting of 2 adults and 1 kid. Which company is good for tier 2 City.
Follow the Golden rule.
The Money is your money, as long as it is in you hand.
One should have at least 50L per head networth to survive for 50 years.
For elder people, consider buying a one house, one plot, one wetland and gold. These investments will beat the inflation and gain some thing extra too.
Try to get monthly pension schemes investing in NPS etc. (This is useful when Sons/daughters abandon the parents after taking parents entire wealth)
Keep some money (<1L) in bank fixed deposit for monthly expenses with different brand (like SBI/AB/HDFC) banks in the same town or city. If the bank bankrupts, RBI pays back the money up to 1L per bank.
Take medical/Health insurance cover for minimum 5L.
Do not believe in any other options including the so called Top Life Insurance people, they can deny any claim at any point of time.
Further to above:
Salaried people goal should be to invest in banks/PPF/Postoffice until you gather the money to buy Real estate. Real estate is the ONLY investment which can beat the inflation.
Other than real estate (House/Flat/Plot/Wetland), rest of the investments are not in your hand (physically not held by you), which beats the golden rule, that is ‘’The Money is YOUR money, as long as it is in your hand’’.
Liquid bees
Forex 
Start a business
Invest in credit card
You can double Ur investment in less than a year
How.pls elobrate
@ OP
LIC sells insurance products. and by its very nature, insurance products are NOT investment products. in fact, in many countries, there are laws that specify that any attempt to sell insurance product as investment product would be treated as fraud and the person would be liable to be arrested and sent to jail on criminal offense. so who so ever sold your father those LIC/insurance product claiming them to be investment products is a big fraud and first and foremost stop any dealing with that person.
there is no RISK FREE investment that would give more than 8% return. the risk free return is benchmarked at Govt Bonds which now comes to around 6.5 to 6.75%.
The best risk free long term investment is SSY (Sukanya Samriddhi Yoyona). It is EEE (exempt, exempt, exempt) on tax purposes also.But it can only be opened in the name of a girl child less than 10 years of age.
The next best is PPF. It is also EEE (exempt, exempt, exempt) on tax purposes.
The third option is NPS (National Pension scheme). The investor has the option to choose the level of risk on investment. He an go from Zero Risk (100% Govt bonds only) to moderate risk (Govt and corporate bonds only) to mixed risk (Govt bonds, corporate bonds and equity). If your father is a tax payer, he will get additional special tax benefits for upto 50k per year deposit. So if he is in 30% bracket, treat that as direct 15.6k cash back every year on 50K investment. Which makes the effective rate of return well above 20%. Plus, it is regulated by the PFRDA under a special Act so has higher security.
Good return on investment with no risk involved DOES NOT EXIST.
Even our normal deposits involve risk (DICGC insure only upto 1lakh) if bank gets bankrupt.
Here is an FD from LIC & govt of india for senior citizens only giving 8.3% interest
https://www.licindia.in/Bottom-Links/Pradhan-Ma...
this is the safest FD possible with high interest after PPF and other govt schemes.
the difference is PPF interest is fully tax exempt and this “FD” is fully taxable
further Pradhan Mantri Vaya Vandana Yojana is NOT a Fixed Deposit (FD), it is a deferred annuity scheme with return of capital.
RBI bonds. 7.8% return
where to buy
how to buy
lock in period
details ?
link ?
Go with post office national saving certificate… This option has 5 year lock in period for the investment amounts and return is 7.9%
You can also avail tax benefit upto 1.5 lac under 80c deduction
Simple at this interest rate your 100rs investment becomes 146rs at the maturity
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Maybe dey wld be comfortable with legacy investment instruments….gold or real estate