Investment advice needed for girl child.

Thanks guys for so much help and sorry for replying late. Been busy with so many issues.

Anyways. keeping it aside, I do not have much knowledge in investment plans and policies so have decided after discussing with my wife to invest in gold and property as we don't need much knowledge in these. Also, have some experience with these, so it's a safe bet for me.
But going through the comments, I think I will choose Sovereign Gold Bond and property. Might have to wait 1-2 years for the property but that's something that I am considering safe from my POV.
Have invested a small amount in crypto and have forgotten about it until some miracle happens and I can get huge gains in it in some years. :P

Thanks so much guys. This community is really helpful. I hope it doesn't die like erodov.
 
scott1391990 said:
Thanks guys for so much help and sorry for replying late. Been busy with so many issues.

Anyways. keeping it aside, I do not have much knowledge in investment plans and policies so have decided after discussing with my wife to invest in gold and property as we don't need much knowledge in these. Also, have some experience with these, so it's a safe bet for me.
But going through the comments, I think I will choose Sovereign Gold Bond and property. Might have to wait 1-2 years for the property but that's something that I am considering safe from my POV.
Have invested a small amount in crypto and have forgotten about it until some miracle happens and I can get huge gains in it in some years. :P

Thanks so much guys. This community is really helpful. I hope it doesn't die like erodov.
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If you want to Invest money in property later do so but then how about parking that for now in some good mutual fund.
 
I see many people suggesting buying gold coins/biscuits. Apart from saving capital gains tax by buying and selling such instruments in cash, is there any other benefit that buying such physical forms of gold has over buying digital gold.
 
Digital gold has cost associated with it while buying and selling which can reduce your returns.

To the OP - RE is illiquid asset, means selling takes lot of time and hassle along with costs like registration and middle men and it's genuiness in papers.
Don't think that am dissuading you, but think about long term and all the avenues. Better late than never.
 
frozenscotch said:
Digital gold has cost associated with it while buying and selling which can reduce your returns.

To the OP - RE is illiquid asset, means selling takes lot of time and hassle along with costs like registration and middle men and it's genuiness in papers.
Don't think that am dissuading you, but think about long term and all the avenues. Better late than never.
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Thanks. Will be looking at all the pros and cons before moving forward.
 
Gold purchased from reputed brands cost more due to taxes but are hassle free when selling. My relative sold her gold chain purchased from Tanishq and got full amount on current market price, where as the other jewellery when sold got a cut. This is for jewellery so if we have to sell coins/biscuits then it will be hassle free and you will get price same as current market price though one should remember sometimes these shops ask you to buy something in return as they won't pay full amount in cash. I think that can be managed by selling coins/biscuits to multiple shops.
 
kartikoli said:
Gold purchased from reputed brands cost more due to taxes but are hassle free when selling. My relative sold her gold chain purchased from Tanishq and got full amount on current market price, where as the other jewellery when sold got a cut. This is for jewellery so if we have to sell coins/biscuits then it will be hassle free and you will get price same as current market price though one should remember sometimes these shops ask you to buy something in return as they won't pay full amount in cash. I think that can be managed by selling coins/biscuits to multiple shops.
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This is mostly true for even local jewellery shops. They will give you full gold value if you are selling back stuff bought from them. But in buying jewellery, you lose the 'making charges'. I believe everyone has some making charges for biscuits and coins as well. And then there is the issue of storage as well. One can negate all that by buying digital gold, but then one can be sure that there will be no way to bypass capital gains tax.
 
rdst_1 said:
This is mostly true for even local jewellery shops. They will give you full gold value if you are selling back stuff bought from them. But in buying jewellery, you lose the 'making charges'. I believe everyone has some making charges for biscuits and coins as well. And then there is the issue of storage as well. One can negate all that by buying digital gold, but then one can be sure that there will be no way to bypass capital gains tax.
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Agree I think almost everyone gives good value for items bought from them.
Making charge of biscuits and coins should be negligible compared to jewellery so it comes to buying from branded shops VS local.
Brands - Buying Taxes / Hassle free selling
Local - No taxes but small making cost / Selling can be difficult as not everyone will give full cash and might want you to buy something instead, defeating whole purpose of investment
Digital gold - Taxes
Land - These days people prefer to buy small flats (less than 1000sqft) as investment else it will become difficult to sell due to less no. of customer. My relatives had a big plot and they made a deal for 40-60% builder agreement and out of 22 flats those that were just 700sqft sold at much better value compared to big ones.
 
scott1391990 said:
Thanks guys for so much help and sorry for replying late. Been busy with so many issues.

Anyways. keeping it aside, I do not have much knowledge in investment plans and policies so have decided after discussing with my wife to invest in gold and property as we don't need much knowledge in these. Also, have some experience with these, so it's a safe bet for me.
But going through the comments, I think I will choose Sovereign Gold Bond and property. Might have to wait 1-2 years for the property but that's something that I am considering safe from my POV.
Have invested a small amount in crypto and have forgotten about it until some miracle happens and I can get huge gains in it in some years. :p

Thanks so much guys. This community is really helpful. I hope it doesn't die like erodov.
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Gold and property! There you go down south :blackeye:! All the best to you and your wife with that!
scott1391990 said:
Thanks. Will be looking at all the pros and cons before moving forward.
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I can tell you now. You will do what your wife will say. All the best!
 
@frozenscotch
It's generally drilled down not to use LICs for investment. Could you give a couple of examples of why/how they're bad with some calculations?

I figured out how to calculate XIRR and my smallish LIC policy came out to be around 6%, which is slightly better than an FD. Did I miss something?
 
LIC means life insurance corporation, not life investment corporation. Why are you even calculating returns, just because they are offering :rolleyes:.

This mindset of ours (getting some returns for our payments), and LIC played the game of safe investments very very nicely thru their huge network of agents. Now, look at these agents - they can be one of our relative, our neighbor or from our street, a lady next door ;). see the trust factor increases many times when they, a known face come and say - you invest a lakh an year , for 20 years, then you get 25lakh return + bonus.
You see only that 25lakh, your eyes are lit. You don't have an idea how much of your policy money is leaked in the name of commission to that agent. (That would be big chunk , really)
Bonus component - how this is calculated, LIC don't reveal this
This is about a good chunk of your money distributed across as commission.

Sorry for the gyan, now, few questions to ponder upon -
1.
Why don't you put your money in FD's which are very easy to break and get funds out in case of emergency ?
With LIC, premature closure will have considerable loss. FDs give 5.5%. So, 0.5% loss with lots of flexibility for your funds. Why LIC ?

2.
LIC - It insures only life. A typical policy doesn't cover medical costs (There might be some LIC mediclaim policy, I didn't check).
Check how much is total policy cost, and how much your family gets when the worst happens ? Now, compare with a term policy. why do you do like this LIC ?

3.
For investments, there are PPF(7.1%) or EPF(8.4% i think) , lot better than FD or LIC , but 15years lock-in. Why LIC ?
(Am not going to equities here)

You just need to separate insurance and investments, all the numbers are before you !!!

Some more specific details -
Mediclaim - you can get a mediclaim policy for 25000 per year, for a young family of 4 , policy value of 20lakhs (hospital costs/accident etc)
Term policy - you can get a life cover of 1Cr for a family head for 25000 per year
For a total 50,000, look at the benefits and compare with LIC

LIC -
monthly SIP of 8334, totaling 1,00,000 per year for 15 years = 15 lakhs , rate 6.0 , at the end, you get 24,35,802 (benefits - life cover of 15 or 20lakh at the best may be, and return at the end of policy if all goes well)

PPF -
1lakh for 15 years = 15lakhs , rate 7.1 , at the end, you get 27,12,139 (benefits - return at the end of 15years lock-in, if all goes well, else nominee will get whatever gets accumulated)

A typical blue chip mutual fund -
After putting 50K in mediclaim mentioned cabove ,
monthly SIP of 4166, totaling 50000 per year for 15 years = 7.5 lakhs , rate 14% , at the end, you get 25,53,149
benefits - you tell me

calculators I used from here - https://finity.in/calculators/sip-calculator.html
I could not search for specific illustrations, so, I just wrote it. If you see any mistakes in numbers, just get the gyst of it.

These are just my thoughts. No hard feelings for LIC or its employees/agents.
 
Today we surrendered 3 of my brother's LIC policies. My dad had taken them. We lost money as we surrendered in just 3 years but better than putting money every year for next 20 Years. Even I surrendered mine few months back.
Do not consider lic as investment. Our agent himself now tells me not to consider lic if your goal is investment.

Better get a term insurance and put rest in other instruments. The only LIC policies we have now are the ones which are fully paid up and awaiting their maturity.
 
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alekhkhanna said:
Real estate is suddenly super hot right now. I am seeing fast construction everywhere in Noida.
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same with mumbai,although now they dont have buyers as market is too saturated,maybe this thing is depending upon area to area. Real estate is a safe bet with a country increasing in population and people moving away from villages to cities this will always be in high demand
 
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