Best Way to Invest 25K

[malhotraraul]

@ blr_p

What do you think about this or suggest according to your evaluation, please share some thoughts ???

 

[MAGNeT]

Prolly cos they have no clue about it in the first place :|

Even people who invest in it doesnt share the details.As if they themselves are brokers and doesnt want retail people like us to know about these expenses.As if we need to burnt our fingers to understand that

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.

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.

Its not necessary you need to encash GOLDS with shops from where you bought.If u have the bill you can pass it on to third person and get cash from him who will check the rates of gold from any reputed jeweler and pay you. On the contrary there are practices in Gold where with some commission you can get cheques for cash and show black to white(Please dont ask about it in detail as thats a CA territory stuff and risk to explain on public platform like this)

 

[blr_p]

Its not necessary you need to encash GOLDS with shops from where you bought.If u have the bill you can pass it on to third person and get cash from him who will check the rates of gold from any reputed jeweler and pay you.

Yes, but as you mentioned there are those commisions involved which would reduce the value by 10-20%.

Oh wait you mean so long as its 'held' rather than 'sold' you will get the market value. So if the 3rd person holds onto to it then those commisons are negated.

On the contrary there are practices in Gold where with some commission you can get cheques for cash and show black to white(Please dont ask about it in detail as thats a CA territory stuff and risk to explain on public platform like this)

Sure, i think there has always been a black market aspect to gold here as a way to park funds and launder later to white.

Beyond that there is this cultural attraction we have to the stuff, we happen to be the biggest importer in the world for gold.

 

[MAGNeT]

Yes, but as you mentioned there are those commisions involved which would reduce the value by 10-20%.

Oh wait you mean so long as its 'held' rather than 'sold' you will get the market value. So if the 3rd person holds onto to it then those commisons are negated.

Well those vault charges and insurance charges are for year or month but they eat 4% of your investments i read.I dont know how does that work.Returns or total investment+returns.No one explains that.Have asked the query on various forum but still no reply.

 

[agupta02]

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

Dude DMAT charges are set by the NSDL and are Rs.330/year all over India. Its another thing that the broker may charge you something extra for opening an account but most of the national banks such as ICICI, Kotak etc do not charge anything for opening a DMAT a/c along with a trading a/c if you already have a banking a/c with them. Their brokerage is quite high though.

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.

5% is too high. Maybe ur talking about ULIPs. There are fund management charges with every investment instrument (even pure equities in the form of brokerage) and are always declared in the prospectus of the fund. No one bothers to read them though. These charges are adjusted in the NAV of the fund but none of them are as high as 5% of your ROI. Even PMS schemes do not charge that much.

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.

Buying gold or silver coins is the stupidest kind of investment. You lose making charges straight away which can be as high as 15% of the amount. If buying physical gold better off buying bricks or ingots from jewelers which can be sold on the open market to any jeweler at the going rate without any deductions. Or but ETFs or buy Gold futures on MCX. Coins are for ceremonial purposes only and not investment.

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.

And why would you not insure it? Penny wise pound foolish I would say if you're buying physical gold and not insuring it.

Point is there are a lot of investment opportunities available now. One can invest in KVPs or NSSs if one wants to keep investments below the radar. One can go for a FD or an FMP if one is very risk averse. But one has to be very sure before investing in speculative instruments as returns can be phenomenal but you can even lose your entire capital in the blink of an eye. As far as the amount goes, 25K can be a very small amount for some of us but it could be quite an amount for someone else. And there are investment opportunities for every kind of investor big or small. One just has to decide on the risk he/she is willing to take. Everyone wants the maximum returns but returns are based on risk appetite. If you don't have the stomach for risk or can't think of the possibility of losing your capital or don't have the capacity to hold on to your investments when times are bad or things go against you, better stick with FDs/debt instruments. You'll make less money but atleast your capital is secured.

 

[malhotraraul]

only the thing is that when brought physical solid gold or silver which does not give returns annually but only can be used at bad times or when the price is quite high

 

[random2]

I would say - Either precious metals or Equity.

Personally, I dont prefer MFs. I have invested in 3 of them and their growth in last 4years are nowhere near to what equity investment has yielded.

 

[blr_p]

One can invest in KVPs or NSSs if one wants to keep investments below the radar.

I think the above make excellent investments for tax purposes upto 1 lakh under 80 C.

The best thing is with the NSSr the accrued interest can be clubbed back into the 80C for the next year so you need to put less down and so on.

 

[agupta02]

^^ not only that, you can make investments in cash and withdraw in cash as the post office makes payments below 50k in cash if required by the investor.

 

[Hacker]

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

Great link

bubble for past 5 years, does it last this long ???????????

Is there any fixed period for any bubble??

 

[malhotraraul]

Is there any fixed period for any bubble??

referring that link, last bubble was 10 - 15 yrs on an average, this bubble may be short or long, depends on USA, but as there is no war going on, USA will soon be out of business, as the south Asian continent emerging, lets see if this is just speculation ???

 

[d@rK nEmEsIs]

thanks for all valuable advices.I can increase the investment period to 2 to 3 years for more returns.I would like to get more than 8% return annually.

I am inching towards buying physical gold as i have no knowledge about MF and other investment schemes.And one should not invest in a scheme unless he has sufficient knowledge of that scheme.

 

[malhotraraul]

thanks for all valuable advices.I can increase the investment period to 2 to 3 years for more returns.I would like to get more than 8% return annually.

I am inching towards buying physical gold as i have no knowledge about MF and other investment schemes.And one should not invest in a scheme unless he has sufficient knowledge of that scheme.

i am buying silver as i am little hesitant towards gold, just do not want to be too greedy & few obvious reasons which is already mentioned on this thread, so just want to be safe rather than sorry

just want to treat it like MF or FD with more returns

 

[chiron]

Starting an account in the state treasury might be good.

 

[Praks]

@agupta

great explanation.

Can you please tell more on Gold ETFs ? I guess there are around 7 vendors like SBI etc.. Which one to take & How to take from Demat a/c ?

 

[agupta02]

^^ dude, I have never invested in Gold ETFs so don't have any clue about the individual funds. Try some websites like moneycontrol.com. They have a wealth of information on everything related to investments.

 

[MAGNeT]

Well agupta for record

I bought physical gold for 1011 rs per gram in the year 2007 .making charge was rs 10 per gram.So thats 1%.On contrary their is only one time 3-4% charges(including vat if bought with bill).One time expense

But on contrary in main market no one buys physical gold these days.All trades happen on paper(means MCX stuff).Thats the reason today only my mom said there was an advertisement in papers of 100% money back guarantee in newspaper which i havent read but i know its would be like making charges also repaid when buy back done.Similarly i remembered last month it was no making charge offers.SO i dont agree with that point it eats up 15% of investment

I still stick to the point of vault charges and insurance charge upto 4% per year that was on paper gold.i.e GOLD ETF.Ill share the later where i read.I enquired about it and never got any reply hence i myself havent invested in it.

NSEL new investment is most soothing but again new demat stuff and so on so i better wait for someones experience

Now where you mentioned ULIP .Till last year for every first investment you used to make in ULIP annualy not 5% but 40% of your investment was eaten.I myself have a ULIP from the year 2005 which i planned to close this year and transfer the sum according to my risk appetite to instrument i feel better.

Regarding KVP and others they all under comes 1 lakh instrument and i feel the best instrument under that is ELSS or PPF.I personally prefer PPF as i have business and again a tricky angle(which i wont disclose).But those who gets salary and fill FORM 16S.i guess ELSS better instrument.But that is different story when you compare with this thread

Again ill say I am not aginst which gives better return or which doesnt.You get better returns than physical gold and silver.The most important stuff is RISK.

Lowest risk.Not a big amount .Physical gold/silver(my personal take is silver) still preferable and at this time when their is still no certainity about Jobs and in USA no new jobs created and in CHINA no new house being bought.I wont suggest investing in commodities and equities unless you have an idea how to deal with it or can handle an attack if you see your instrument turning half the value.

 

[vinay_0007]

Anyone who wants to invest in silver and are from Bangalore can contact me.. My dad is a silver retailer . I can help you get Silver at quite reasonable price in less margin .

thanks!

Vinay

 

[vahss_11]

Just put money in the equity and sleep till someone wake you up, mostly panwala's or even so called Market Guru's and tell you that market is good and will go up, i.e majority of people are bullish , thats the time you should take out your money and again go to sleep , till the opposite of the above happens.

i.e BUY EQUITY , THE MAJORITY OF THE WORLD IS BEARISH.