Best Way to Invest 25K
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You are better of with Fixed Deposit. Right now the interest rate is around 7% for a 390 Days deposit.
Investing in Equity (Directly or Mutual Funds (Equity)) is a risky proposition for short time. For equity investment horizon should be for atleast 3 Years.
You can also think about FMP (Fixed Maturity Plan), they are available in Mutual Funds (Debt) and give returns on par with FDs and are better tax efficient. But as the sum involved is very small, you should stick with FD.
PM me if you want more details.
Investing in Equity (Directly or Mutual Funds (Equity)) is a risky proposition for short time. For equity investment horizon should be for atleast 3 Years.
You can also think about FMP (Fixed Maturity Plan), they are available in Mutual Funds (Debt) and give returns on par with FDs and are better tax efficient. But as the sum involved is very small, you should stick with FD.
PM me if you want more details.
malhotraraul
Galvanizer
Thats the reason in first place i said to buy silver but people keep coming back to GOLD.SO the person atleast invest somewhere i added itHacker said:
But better would be silver to buy as in next 10-15 years it might extinct and hence price might touch 1000Rs a gram.Plus silver gave more returns than gold in past 1 year as investment in percentage
Also regarding gold
See this
Is Gold worth Buying ?
When one invest in gold he is not earning any profit it just makes to stay you rich but doesnt make you rich.Its a hedge against inflation but that too is doesnt keeping pace now
malhotraraul
Galvanizer
ok, after reading this, this is kind of an eye opener, makes one think, i never invested in equity / shares, can you put some light on it please ??MAGNeT said:
with reference to the link, when gold is at its peak now, no one knows how long this is gonna last, i somehow think that selling gold now is more advisable rather than buying, like they say in advts that gold can also be used as mortgage now, but imagine when gold prices will come down, what will happen to these financial institutions, market will crash a big time, so maybe this is profitable in short term, but long term it is not advisable.
also if an average women would have invested in equity instead of gold, rather than reaping 30 times profit, she would have reaped 140 times & thats an heart attack.
Emperor
Juggernaut
Invest in Gold or Good STOCK. If you don't have any plan to invest more in stock in near future than don't go with stock. Buy Gold.
So you will benefit 2 way with Gold:
1) Good Investment, very liquid form of investment, when need money urgent go to market sold gold & get cash in less than 30 minutes (may be not that easy with stock/shares/mf etc.)
2) Ladies in your family (mom/sister & if married than wifi) start giving you more attention & if unmarried, than your GF starts attending your calls with 1st ring (mobile ring).
So you will benefit 2 way with Gold:
1) Good Investment, very liquid form of investment, when need money urgent go to market sold gold & get cash in less than 30 minutes (may be not that easy with stock/shares/mf etc.)
2) Ladies in your family (mom/sister & if married than wifi) start giving you more attention & if unmarried, than your GF starts attending your calls with 1st ring (mobile ring).
gold coins issued by bank are not a very good choice, as the banks can only sell them. they cannot buy it back. you when you have to sell it, you'll have to go to a jeweller who would evaluate it on its own terms and give you the price.Desecrator said:
also the coin issued by banks are 99.99% pure whose purity cannot be deterimined by most jewellers from the 99.96% pure gold that they sell
Thats the worst piece of advice if it was given to you by someoneDesecrator said:
Gold rates of banks are normally 10-15% higher.So u lose your 15% money at first place.Than when u want to sell they dont buy back.So u goto jeweler who again charges 8%(it may vary) as penalty as it wasnt from them so again a loss.SO instead of to make you stay rich its likes eating from your pocket.
Their are reputed shops like tribhovan bhimji and tanishq which buy back at present rate without penalizing plus you do get certificate or atleast buy with Bill and pay vat to be safe.
Ill recommend all of you to bookmark jagoinvestor site whose article of gold i shared
It has tons of articles from insurance to company fds to real estat investment that too according to Indian market scenario not US and easy to understand.
After following their sites though not related to stocks i was able to turn my -10% stock portfolio to +8% all within 1 year(also my portfolio weights more than 2 lakh so it was a big stuff for me to turn it into positive even though i have few shares giving me -40% return of old investment with reliance power upto 50% negative return)
One strategy ill like to share is if you make 100% return in a share sell half your holdings get your initial investment and invest that somewhere else.And forget the remaining half holding for legacy(or for bad times).You never know u can see wipro like return which i said in old posts
Regarding 25k investment stuff chap.In year 2007 i myself had 25k and i was tired of my system and didn't want to spend the money but to invest.But i had least idea except dad-mom saying buy gold or land.We know in 25k u get not a inch of land these days.I bought gold.I have hardly seen that coin or even its bill but according to present rate that 25k values now 47.5k.
Most important thing is invest money fast rather than wasting time.Decide later buy gold or silver now if you get better option convert it back to cash and invest somewhere else
thanks for your valuable advices guys.
So I should invest the money in buying gold rather than risking it on mutual fund.I think I better invest in gold as i have zero knowledge on mutual funds.
Any good source to learn about it other than link shared by magnet.What is difference between debt based mutual funds and equity based.
So I should invest the money in buying gold rather than risking it on mutual fund.I think I better invest in gold as i have zero knowledge on mutual funds.
Any good source to learn about it other than link shared by magnet.What is difference between debt based mutual funds and equity based.
malhotraraul
Galvanizer
I would not recommend investing in physical gold coins. though its easy to buy, the selling part is difficult...few months ago I called up quiet a few jewelers in Chennai and found most of them are not buying the gold coins back for cash(even the 99.99 % pure certified gold)...only few does give cash for gold..but its only for gold brought FROM them ...that that too after reducing a small %
Check out this article The Hindu Business Line : Buying gold coins from banks is for the keeps
and for investing in gold ETF funds...do checkout the expense ratio before you jump ...all have recurring expenses...few have high expense of about 2.50% of weekly net average
Check out this article The Hindu Business Line : Buying gold coins from banks is for the keeps
and for investing in gold ETF funds...do checkout the expense ratio before you jump ...all have recurring expenses...few have high expense of about 2.50% of weekly net average
Dude....there are risks involved with every investment you make apart from Bank FDs. For those who don't know, banks return your money after cutting TDS and the entire Interest income from Bank FDs is taxable. So if you're in the highest tax bracket, your return is trimmed by 30% tax on the interest income for the financial year that you receive it.
Best advise, you're young, choose an aggressive Equity fund such as Reliance Growth or Reliance Vision, put in your bulk investment of 25k and start a SIP. Benefits:
1. Your money will rise with the market and a good SIP can easily give you a return of 18 - 20% annualized. In case the market falls, your investment would not suffer as much as those who invested in one go as your SIP would average out your buying cost and you'll reach break even sooner. Plus Equities are the best asset class as far as returns on investment goes, even better than property. And they require little or no monitoring and can be liquidated very easily. You can even take out a loan against them from various institutions.
2. All your returns in SIP come under LTCG (Long term capital gains) and hence are tax free if redeemed after one year from date of investment.
3. The mutual funds give out regular dividends which can then be either reinvested in the same mutual fund or can be directed to other avenues of investment.
Best advise, you're young, choose an aggressive Equity fund such as Reliance Growth or Reliance Vision, put in your bulk investment of 25k and start a SIP. Benefits:
1. Your money will rise with the market and a good SIP can easily give you a return of 18 - 20% annualized. In case the market falls, your investment would not suffer as much as those who invested in one go as your SIP would average out your buying cost and you'll reach break even sooner. Plus Equities are the best asset class as far as returns on investment goes, even better than property. And they require little or no monitoring and can be liquidated very easily. You can even take out a loan against them from various institutions.
2. All your returns in SIP come under LTCG (Long term capital gains) and hence are tax free if redeemed after one year from date of investment.
3. The mutual funds give out regular dividends which can then be either reinvested in the same mutual fund or can be directed to other avenues of investment.
ch@ts
Herald
Why not consider art? A 1 year horizon won't give you any returns, but if you're open to a longer term investment, it's something that you may want to consider.
The downsides are, that art isn't very liquid, the galleries charge big margins, and you need to do quite a bit of research before you buy something.
But if you manage to pick up a nice painting of an upcoming artist, you'll get some pretty nice returns once your painter gets a bit more famous. And if he doesn't then you've got a decorative piece you can enjoy for years.
The downsides are, that art isn't very liquid, the galleries charge big margins, and you need to do quite a bit of research before you buy something.
But if you manage to pick up a nice painting of an upcoming artist, you'll get some pretty nice returns once your painter gets a bit more famous. And if he doesn't then you've got a decorative piece you can enjoy for years.
freshseasons1
Contributor
If the value is 25K dont split it in investments.Cuz eventually everything will offset itself and there will be hardly any recognizable gain.
With 25K and just one year MF donest come into play. I think go for investing in Equity makes more sense for timeframe of 1 year..
With 25K and just one year MF donest come into play. I think go for investing in Equity makes more sense for timeframe of 1 year..
Apgupta reply is correct and preferable but person needs minimum risk and less time period horizon.Plus he need to maintain his demat account.Just opening the account and invest 25k and forget.I am not in favour of that.Demat charges will eat up your investment after a year.Plus if person have less knowledge i dont vouch for same.Else investing in sectors in which you have least idea with MF is the best way to invest for 20% annual return
Ill personally bet for silver if at your place but i am sure once i am ready to buy my mother will buy gold coin.So i invest in stock right now with sound mind.As i do have good knowledge about it and avoid derivative and short selling stuff as i am unaware about its working right now.
People who recommends gold etf and so on..
First its just 25k.U need to open or maintain demat account plus lot of hidden charges applied on it like vault charges,insurance charge etc etc.It eats upto 5% of your return or investment .I am not sure about it as no one answers about same.
Buy coin of gold or bar of silver.And do confirm with shop they buy back.Some shops dont but majority does.If they dont bu back whats the logic to invest in it.
Also some new nsel e gold and e silver have come up with minimum charges and so on.But again hardly anyone knows abou it.So right now stick with physical form.I am sure you can easily store same and dont have to worry about insuring it.
Art too is an instrument to invest but 2 problems
1 How to know how much you pay.Or the price you paying is right?Any factor like carat for gold and so on?
2 Storage.This is the biggest hurdle.You just cant buy and put on your wall.Moisture will damage it.All big paintings and big investments are not shown or hided at homes but stored at storage vault service who charges 1-3 lakh per year for same.
Its totally different market until you have idea about art avoid it
Debt Funds=Invest in government securities ,bonds,papers etc.returns might be less but they are more safe
Equity Funds=Invest in market.Differ whether they invest in pure bse top 30 shares or new sectors and so on.But purely in market
TDS is the taxed due on you collected in advance.All FDS are taxable according to bracket of income tax u fall under it.If u fall under 10% bracket .10% of your investment return is taxable.Banks doesnt cut TDS if interest less than 10k but once it touches 10001 it cuts 1000+ amount as tds.WHich means you dont have to pay it seperately but bank has already forwarded the same to government.
Also note for company FDS TDS applies above 5k rupees from single instrument return
Ill personally bet for silver if at your place but i am sure once i am ready to buy my mother will buy gold coin.So i invest in stock right now with sound mind.As i do have good knowledge about it and avoid derivative and short selling stuff as i am unaware about its working right now.
People who recommends gold etf and so on..
First its just 25k.U need to open or maintain demat account plus lot of hidden charges applied on it like vault charges,insurance charge etc etc.It eats upto 5% of your return or investment .I am not sure about it as no one answers about same.
Buy coin of gold or bar of silver.And do confirm with shop they buy back.Some shops dont but majority does.If they dont bu back whats the logic to invest in it.
Also some new nsel e gold and e silver have come up with minimum charges and so on.But again hardly anyone knows abou it.So right now stick with physical form.I am sure you can easily store same and dont have to worry about insuring it.
Art too is an instrument to invest but 2 problems
1 How to know how much you pay.Or the price you paying is right?Any factor like carat for gold and so on?
2 Storage.This is the biggest hurdle.You just cant buy and put on your wall.Moisture will damage it.All big paintings and big investments are not shown or hided at homes but stored at storage vault service who charges 1-3 lakh per year for same.
Its totally different market until you have idea about art avoid it
Debt Funds=Invest in government securities ,bonds,papers etc.returns might be less but they are more safe
Equity Funds=Invest in market.Differ whether they invest in pure bse top 30 shares or new sectors and so on.But purely in market
TDS is the taxed due on you collected in advance.All FDS are taxable according to bracket of income tax u fall under it.If u fall under 10% bracket .10% of your investment return is taxable.Banks doesnt cut TDS if interest less than 10k but once it touches 10001 it cuts 1000+ amount as tds.WHich means you dont have to pay it seperately but bank has already forwarded the same to government.
Also note for company FDS TDS applies above 5k rupees from single instrument return
blr_p
Quasar
Prolly cos they have no clue about it in the first place :|MAGNeT said:
You know i've never understood why ppl did buy them at all for those very same reasons. Maybe its for keepers rather than investment to redeem at later date.MAGNeT said:
other than that there have been a lot of replies without OP FIRST mentioning the rate of returns expected or risk he was willing to take.
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