Where should I make investments?

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raksrules said:
@MAGNeT

I am very reluctant in putting my money in such not so known banks. We have been saved from losing like 50K some years ago when i had just collected the FD money from ABAD Bank (Ahmedabad something) and the next day the bank had packed its bags.
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The banks i have mentioned are not worst .But you never know.Co-operative banks started mainly to finance politicans.If the politican himself gets scrwed than you are sure about the bank going kaput.

Recently in Hyderabad some bank name Amanat catering to its same religion customer has gone kaput.RBI have restricted 1000 rupee per account transaction per day.

These banks offer so good rates of FD all are caught into it.

But now i feel i have sound knowledge enough to move above fd and move to liquid funds.

But most probably i will complete the terms of all my fixed deposits.
 
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@raksrules

If you want better returns but dont want the headaches and risks of investing in individual stocks the invest your money in Nifty Bees. Its an index fund which is a collection of 50 stocks so even if company goes bankrupt the index is not affected much. Ofcourse there is still the overall market risk like we had in 2008-09 where the whole market goes down but then that is the time to buy more units of nifty bees.

Check this out

Nifty PE Ratio
 
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If I am correct, if any bank goes under you can get back a max a 1L per FD only. In other words your FD is insured for 1L only.
 
rdst_1 said:
If I am correct, if any bank goes under you can get back a max a 1L per FD only. In other words your FD is insured for 1L only.
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If what you are saying is right then say i have a FD of 3 Lakh in a Bank then i am entitled to get only 1 Lakh back incase the bank goes under ?
If yes then in order to mitigate risks here, can we like make multiple FDs of 1 Lakh each and since each FD is different, i would still be entitles to get all my principal amount back on all the FDs in the event of bank closure.
 
rdst_1 said:
If I am correct, if any bank goes under you can get back a max a 1L per FD only. In other words your FD is insured for 1L only.
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raksrules said:
If what you are saying is right then say i have a FD of 3 Lakh in a Bank then i am entitled to get only 1 Lakh back incase the bank goes under ?
If yes then in order to mitigate risks here, can we like make multiple FDs of 1 Lakh each and since each FD is different, i would still be entitles to get all my principal amount back on all the FDs in the event of bank closure.
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It's not per FD. It is per person in a bank, irrespective of the number of FDs or branches. Spreading out your FDs across branches of the same bank is not going to be any different from putting them in one big lump sum in one branch. The maximum amount one can get back this way is only 1 lac.

Read this for details: http://www.rbi.org.in/scripts/FAQView.aspx?Id=64
 
Also dont be under that impression that your 1 lakh rupee is safe.

Basically bank has to pay some insurance premium to an insurance company per account per year and upto 1 Lakh amount is safe.

Recently one bank which went dud ,it was found they were not even paying this insurance amount.Hence because of banks fault all its customers looses even this sum.

Also until bank is not completely winded up sum is not got.There are banks which went dud 4-6 years back,but matter is in court something and even that 1 lakh amount haven't been paid.
 
I think in such cases it is always safe to put money in Government backed banks even if we don't like their customer service etc.
Can anyone list down some banks where it would be safe to put our money in FD ?
 
I think bank of Baroda is a fairly decent option for fd. Share Market has lost its charm. I think investment in land/plots wud give good returns quickly considering current demand, but make sure the documents are proper or there will be trouble. even post office offers interest upto 8% not a bad option along with tax benefits.
 
Actual Silver , its even more worth than gold other options like FD , NSC , PPF are just waste can't even beat inflation.
 
There is a golden rule in investment, the higher the the return, the higher the risk.
So, its obvious that few asset class can give astonishing returns, but kindly keep in mind that you can loose your entire principal also.
So, kindly look at the risk also and not just returns.
 
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Yes i am not at all being greedy and putting all eggs in one basket. FD is being used only because at this point it feels safe along with decent return rates.
 
Raks its better you post your query on financial site like jagoinvestor forum.
The way its moving here from least risk to a commodity investment of silver (and also backlashing government instruments which are actually tax saving ones and never inflation beating instrument ).You will just get confuse and wont be able to decide.

Also be clear how much risk you ready to take.Where your money right now is at bottom of pyramid which is said to be least risky.WHereas share markets,equity mutual fund ,commodites goes into top of pyramid(most risk).
Also real estate can be of least interest if sum is less say 10L and you located in metro.And mind you even it has its share of trouble checking ownership of plots.
 
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With interest rates dropping now, an FD doesn't seem like it is worth it these days.

raksrules: Do check out a financial planning website for free info, on how to divide your assets. I guess you could apply this to yourself and your parents/siblings, and plan out where to park the money. (of course, modify the division with a little thought, and not exactly what the websites say)

I'd suggest you park a bit in liquid MFs (under Direct Plan), which provide liquidity similar to FDs.
 
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Wait for the Inflation Indexes Bonds coming up in the next few months. Debt MFs are good too. No tax on the returns if sold after 1 year.
 
Bumping the thread again,

I am planning to remove the money invested from MF and cash out on whatever the NAV is at the moment. What is this Inflation Index Bond some people are talking about ? Also what is the rate of return and how safe is the principal and tax implications ?
 
Which is the best site for trading stocks online?
I have a icici bank account, but many people said that icici direct charges heavy brokerage.
 
I have an ICICI bank account + demat + trading account. The brokerage is higher than a lot of other competitors but so are the services, mentioning a few. Instant money transfer to-from bank to trading account. Daily suggestions for day trading, short term, long term suggestions. Automatic STCG/LTCG calculations based on your trading history.

A lot of these services are also available on third party sites too but I preferred ICICI because my trading volume was not huge enough and the increase in brokerage does not matter much as compared to the services being offered.

@pradeep200417,
check the services which are being offered too while comparing brokerages. If you go to an ICICIDirect centre and request a demo of services, they would definitely oblige. Preferably during off peak hours.
If you are going to trade heavily then a terminal based platform would be much better instead of the web-based system and the brokerage/annual charges for that vary a lot.
 
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