esanthosh
Herald
unni said:
Use this - https://www.corpbanknet.com/Recurr_deposit_Calc.html
The interest is compounded quarterly.
Investing 10,000 Rupees per month, what are the options ?
- Thread starter raksrules
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Use this - https://www.corpbanknet.com/Recurr_deposit_Calc.html
The interest is compounded quarterly.
Thanks. The link made it crystal clear.
Now I have another question. My friend says that even though I am getting 7% interest, if I take inflation into consideration, the amount I actually get will be lesser after 2 years. For example, now the inflation is 9% per year. If I (try to
) calculate the effective amount after 2 years with the above RD, even though it appears that I am getting certain amount as interest, I cannot consider that as profit once I factor in the inflation during these 2 years. I hope I made it clear.
Is this true?
Also, how much tax I need to pay once the 2 years are over and I get the amount back?
Now I have another question. My friend says that even though I am getting 7% interest, if I take inflation into consideration, the amount I actually get will be lesser after 2 years. For example, now the inflation is 9% per year. If I (try to
) calculate the effective amount after 2 years with the above RD, even though it appears that I am getting certain amount as interest, I cannot consider that as profit once I factor in the inflation during these 2 years. I hope I made it clear.Is this true?
Also, how much tax I need to pay once the 2 years are over and I get the amount back?
Onemufc
Herald
Lets take a easier example , Say you deposit 1L in FD @ 8% and Inflation is 10% and the net inflation for the next 5 years comes out at 9 % . Then you will be losing money, That is because the value of 1L will be going down for the next 5 years . That is why Mutual Funds are worth the risk.
Also , PF is the best investment mate . Tell your Finance team to cut more PF from your basic. As they say , Raise a Request
Also , PF is the best investment mate . Tell your Finance team to cut more PF from your basic. As they say , Raise a Request
nanoneo
Contributor
This is a bit late, but contrary to common perception, buying real estate isn't a great form of investment. I know it works for a few people. That is people who know exactly what they are doing, but:
Real estate market keeps swining up and down. When it isn't swining, its in a constant boom and bust cycle. When you actually want to sell the house what will you do if the market is currently bust?
Just because a house or piece of land appreciates in value, it doesn't mean that you will find a seller. Selling a house is far more difficult that you would think.
Plan to sell a house of liquid money? Forget it. Any money made of property sale goes under capital gains. Unless you reinvest it, say goodbye to twenty percent.
Real estate market keeps swining up and down. When it isn't swining, its in a constant boom and bust cycle. When you actually want to sell the house what will you do if the market is currently bust?
Just because a house or piece of land appreciates in value, it doesn't mean that you will find a seller. Selling a house is far more difficult that you would think.
Plan to sell a house of liquid money? Forget it. Any money made of property sale goes under capital gains. Unless you reinvest it, say goodbye to twenty percent.
Basically speaking you are right with taking inflation into consideration you making lost as the value of your commodity to buy same good have increased at faster pace than your money grew as inflation is more than returns you getting.unni said:Thanks. The link made it crystal clear.
Now I have another question. My friend says that even though I am getting 7% interest, if I take inflation into consideration, the amount I actually get will be lesser after 2 years. For example, now the inflation is 9% per year. If I (try to
Is this true?
Also, how much tax I need to pay once the 2 years are over and I get the amount back?
Now speaking about tax.Better would be calculating the amount you earn as interest in a year.If preparing FD ask for interest certificate from bank for a particular year from the period of 1st April to march next year.Now the amount you getting though accrued need to add and calculate tax according to your slab.
Reason being its not a wise practice to calculate tax after term over as liability will turn more at end of term.
sudan_rulz
Contributor
Me too looking for sum similar investment plans but planning to go for equity funds way..
Though its too risky, but the profit u can earn is :gap:
Though its too risky, but the profit u can earn is :gap:
There are some usual suspects - HDFC Top 200, Reliance Regular Savings Balanced (this also has an Equity option, but the Balanced one has been performing better), IDFC Premier Equity and Reliance Pharma. These funds have been performing well in the long run for some time now
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