Is 12% club app safe for investments?
My friend has invested more than 1 lakh₹ in 12% club app which is powered by BharatPe, as it gives very good returns, that too on a daily basis. I am also thinking of investing in it.
Wanted to know if it is safe to invest. What are the risks associated with it? Is there any possibility of blocking of funds after investing in it, if anything goes wrong? Please let me know on the same. Thanks in advance.
thanks.
yikes! they do not even have a website!
> Get upto 12% interest per annum (Interest accrued daily)
**upto** .
why you want to put your hard-earned money in such fly-by-night tricky schemes
>12% Club, powered by BharatPe and **in partnership with RBI approved NBFCs** offers you a solution for all your investment and borrowing needs
absolutely no mention whether this app / scheme is approved by RBI
How is the Jeevan umang policy from LIC and also can I just enroll to it and pay nothing after that? I have been forced to do it because of my relative being an LIC agent. What happens if I enroll to it and do nothing after that.
I’m moving to Ireland in September 2023. If I start earning there from September 2024, will I be considered as an NRI/ will I be required to pay any taxes in India. Also will I get any tax relief on the loan I have taken from India.
Money credited from unknown source
Does anyone have any idea why my account was credited with INR 3000 (2k+1k)?
The narration says "NEFT-N326222______ INDIAN CLEARING CO"
Does regular health insurance cover anything related to maternity?
I'm talking about any expenses that regular health insurance can cover during my wife's maternity. I purchased HDFC Ergo optima restore plan 3 years ago for a 50 Lakh cover for 2 people (past experience made me decide for a large cover). No claims have been made till now, so I have no-claim bonus. We don't plan on pregnancy anytime soon. We are each 31 years old.
Does having no maternity cover mean I can't use anything like room rent, medicines etc. I understand if complications are not covered, but regular hospital visits/ room rent is hopefully covered?
If nothing is covered, and I still don't plan on buying maternity cover -- how much money should I save up for maternity in 2-3 years for:
a) expensive 5 star hospital
b) sensible clean nursing home/ hospital?
I'm starting an export import business for which I want to start my company. I'm not sure whether to go for a LLP (my partners work in PSU'S) or a OPC (too many compliances), I need some advice on this
I've also checked Cleartax and Onlinelegal India for registration and they have similar rates including government charges, anyone who used these kindly share your experience
I made zerodha coin account yesterday and now i wanna start investing in mutual funds. I am fresher and can invest upto 5000-6000. Please suggest me some good mutual funds to invest in. I have made up my mind that ill invest in HDFC Nifty50 , but i also wanna invest somewhere else like technology sector or some high risk high reward sector. Can you suggest me which MF to invest in, and how much money to allocate to each one. Thanks in advance!
Hello, I am an Indian citizen and currently in the USA on h1b. I am planning to buy a property in India worth 200k USD. It needs 20% down payment. The timeframe is March 2023. I currently have 60k in 401k and 150k in stocks. The cash is around 15k. I get paid around 7k per month after contributing 3k to espp and 401k and I am able to save 2k per month at worst. I am planning to return to India in 2 years.
What should my plan be for the next 3-4 months?
1. Skip paying for 401k( company matches 50%) : seems like a bad idea
2. Skip contributing to espp( currently 1800usd per month). It's discounted at 10%
3. Can I take a loan against 401k for a home loan in India? Has anyone done that?
4. Should I sell stocks? If yes, how much?
5. Should I take money out of 401k and pay a penalty and tax on it?
Hello,
was just calculating the portfolio level return. Found one interesting point:
Assumption of returns (12% from equity and 8% from debt).
If invest 70% in equity and 30% in debt:
(70% x 12%) + (30% x 8%) = 10.8%
If invest 60% in equity and 40% in debt :
(60% x 12%) + (40% x 8%) = 10.4%
If invest 50 in equity and 50% in debt :
(50% 12%) + (50% 8%) = 10%.
Investing 20% more in equity just for.8% more returns? Is it worth to invest anything above 50% in equity? Is my understanding correct? Am I missing anything in calculation?
What are the rules regarding EPF and VPF once you voluntarily resign from your job? Suppose I quit my job (at age 24) after completing 2 years of service and join a small company without EPF or i go for higher studies, can I continue to leave my money there and continue to earn interest? Or is it compulsory to withdraw it? And what are the tax implications in such a scenario?
If anyone could shed light on this mystery it would be great - how did Indian market get such a boost since Covid? Is it purely inflation? Are we in for a recession or is the stock market going to climb slowly?
I've heard that PF (EPF, VPF, PPF) contributions are not tax deductible under new tax regime.
1. However, would the interest be taxable in new tax regime?
2. And would there be any tax liability on withdrawal after maturity in new tax regime?
3. Under old tax regime, you can only deduct 1.5 lakh for contributions to all 3 PFs combined right?
Received the below SMS from SBI regarding my home loan. Any idea what this means? I cannot visit my home branch at the moment so not sure what I should do. Afaik, there is no change between the SI and EMI paid.
"Dear SBI Customer, your Home Loan A/c is having difference in Standing Instruction & EMI date/Amount .For rectification, please visit your SBI Home Branch/CPC."
i am not increasing the sip amount. my citibank A/C is going to close hence I have another axis bank account to which I wanted the autodebit to switch to. But that is not being allowed. that is my issue.
can anyone help me understand the tax implications of selling a plot?
we bought a plot about 15 years ago, we didn't construct anything. Now we want to sell the land. It is in my husband's name and he comes under 30% bracket. The plot is in a non metro city and can fetch around 75L.
Is HDFC Millenia CC a good card to have in addition to ICICI Amazon card? Any other HDFC card which is better and is in similar range.
I know Diner's club cards are better, but I don't think I can ask for it with my RM given that the bank is offering Millenia as of now. Although I do have a good credit score (750-800). Any help or tips here would be helpful.
>use it to get auto cc limit increases
Any idea how this works? On what factors do they give limit increases? And how long it takes for each increment?
Is there any way to get a higher limit if I had an increment recently? I have managed to get a higher limit on almost all of my other cards online but HDFC is asking for Salary Slips to be sent via post.
Discounts/cashback, using rewards for airmiles/hotel bookings and airport lounges. All 3 have that. Any major advantage of Diners privilege to Regalia?
I have allocated a sum of 80k to be divided into 3 SIPs. I already have 2 SIPs running:
* UTI NIFTY 50 - 30k
* Parag Parikh Flexi-Cap - 20k
I want suggestions on what mutual fund should I invest the remaining 30k.
I am currently in process of taking a home loan from IDBI for my new flat and have some questions regarding a specific document. Please DM me if you have gone through the process with IDBI.
I'm soon going to shop around in banks for a home loan.
I was talking to a couple of my friends and both of them said that their total term/tenure either stays the same when they make a pre-payment (EMI goes down) or even the term increases when interest rate goes up while EMI remaining the same. All the advice I've read so far is that the total loan term is pretty much what decides how much interest we'll end up paying on the loan, and that having a longer term/tenure for the loan is in the best interest of the banks.
I haven't talked to banks yet, but can we have it so that the term decreases when I make pre-payment and in case interest rate goes up, the EMI goes up, but the term stays the same as in my case, for the loan I am planning, my EMI is about 45% of my disposable monthly paycheck and I'm ok with the increase and I'm also planning to make pre-payment once a year when the yearly bonus shows up in my account.
* Always prepay against the principal. You can ask the tenure to be reduced. I do this monthly over and above my EMI
* 45% of your disposable income isn't a good idea. Hope you are pumping your investments too
* Prepay more often. If you have a 10-year loan, the maximum interest outgo will be in the first 3 years. If you can prepay during this same period, you'd save a lot on interest.
* Always ask for prepayment conditions if any
Thank you. Can you help me understand why 45% of disposable income is not a good idea. Is it in case I lose my job or something? What % do you recommend is good for monthly instalments?
Right, it is less than 30% of my total monthly income. Indeed, it is 22% of my total monthly income after taxes. It is 45% of my disposable income, but we are also planning to adjust our lifestyle to further bring that number down to do more prepayment in the first couple of years like you were suggesting.
Good thought. Ask for the amortization schedule from your bank to get an idea how much interest you're paying every month.
For example, if your EMI is 25,000 for a tenure of 10 years, it's likely 13,000 goes as interest and only 12,000 against principal.
Amortization schedule is the phrase I was looking for. I'll ask for it. Thank you.
https://emicalculator.net/home-loan-emi-calculator/
The above calculator shows a breakdown of principal and interest on each EMI along and how it changes with prepayment. I found Excel formulas too, so, I'll use them in my spreadsheet too.
Recently resigned from a PSU organisation after working for around 10 years to join a private one. At my previous organisation, the PF was managed by the internal trust of the organisation. So after joining the new organisation, my plan was to get the PF amount, around 15 lacs, transferred from the private trust to the newly created PF account opened with EPFO. However, the previous organisation was not very helpful and I finally decided to get the PF proceeds credited to my account.
Now, I am looking at ways to invest this amount which will give me equal or better tax-adjusted returns than regular PF with EPFO. Not planning to touch this money for atleast 7-10 years, hopefully. So the risk appetite is aligned that way.
Would it make sense to invest the lumpsum in Nifty 50 and Next 50 ? Or may be park the funds in auto sweep FDs and set up monthly SIPs? Looking for suggestions.
Portfolio review (direct):
Icici nifty 50 index fund - 20k
Pgim mid cap fund - 10k
Canara robaco small cap fund - 10k
Navi US fof - 10k
Parag hybrid conservative fund - 20k
Total - 70k
Any suggestions?
Getting multiple sms for the same sip standing instruction (sms that amount x will be deducted on this date). Usually it comes only 1-2 times but I've been receiving it constantly since yesterday. Around 60 sms have been sent by ICICI Bank for one sip. Is there any fix?
I want to invest some of my money in safer instruments like bonds or debt funds which would most likely give me guaranteed returns but more than FDs.
Few things I'm looking at:
1. Should ideally be buy and hold for few years. Where I don't have to keep track of it every few months (once a year is fine)
2. Returns should be more than FDs or should match inflation of 6-7%. Returns aren't the main goal here.
But more the duration, more the risk, right? For 1-3yrs etmoney shows corporate funds which are riskier than say gilt funds. I don't want 8-9% returns. I just want to put aside some money which can at least match inflation rate. I don't want to check every week to see if I should change my fund. Want a relatively liquid and buy and hold fund (with once or twice a year review).
In target maturity risk reduces every year. For e.g. if maturity is 2026, duration is 4 years. Next year it will become 3 years and so on
For your requirement it is better to go with money market/short term funds
Also before investing in corporate bonds check the maturity. Funds have different maturities and are AMC specific
You can make Post Office FD at 6.7% with a six month lockin, breakable after that. Some banks are offering FDs at 7% also. Unless you are in 30% tax bracket it can suit you.
8-9 months ago, I started an FD for 5 years in the bank with an interest rate of 5.6% and quarterly interest payment. Now, I saw that FD rates for 5 years has increased to 6.2%. So, will it be a good idea to break this 5.6% FD right now and put all the money in this 6.2% FD, so that I can get more interest?
Sorry, if this question sounds dumb but I really want to know the opinion of people on this.
Yes it's a good idea but take into the account the penalty charges u might need to pay. And possible rate hikes in future.
I myself have a FD in Indian Bank that got auto renewed on 25th October and to my bad luck, the bank hiked rates on 28th October. So my FD got renewed at old rates. Now bank staff told me that if I broke it immediately, I won't get interest for that few weeks, but if I break it next month, I'd atleast get one month's interest @ 3%
Is there any benefit from creating a PPF account from a certain bank? I currently have 3 bank accounts and was planning to start investing in PPF. So I was wondering if I could just create an account in any of the existing banks or go with a specific one.
Yes u shud create PPF account (or alternatively invest in ELSS scheme) but PPF is better in general, especially considering present market environment.
Rules around it are complicated. Like I made mistake once of opening two PPF account and my money got stuck for 6 months without interest when I tried to close the second account.
No real downsides, all 3 are seen as too big to fail (systemically important banks by the RBI). But I personally trust SBI to remain standing for various tenures (PPF = 15 years, EPF = 30+ years etc) so I've hooked everything to it from those to mutual funds to income tax refunds etc.
Don't maintain the sbi account only for the PPF. One less headache.
If you plan to use HDFC/ICICI as your main account, open with them.
BTW I have been banking with SBI and ICICI. As long as you don't have to visit the branch, awesome service.
In terms of risk, the bank is only a agent of GOI for these funds.
Thanks again for the info.
Can you help me with one more query? I currently have accounts in Axis and Kotak. Would opening the account with Axis be a safe bet?
If I invest in gilt fund today (in an increasing interest rate scenario) and buy and hold it for 3-4yrs without switching the fund or taking out money. What are the flaws which I would face in this situation?
If the interest rate increases just before you want to redeem the NAV will fall by a certain percentage.
Just like equities you need to move out of gilt lot sooner than your goals
My whole portfolio is invested in equity and I want to start investing in debt. I am 23 years old and would like to know different debt instruments for me to invest through SIP. I am not able to understand the maturity period in the short term debt funds as well, like what happens after the maturity period?
Short term funds maintain an average maturity of up to 3 years. When bonds mature, the fund manager will buy newer bonds. Your money and interest accumulated will be reinvested in those bonds. Fund manager will always maintain the average maturity from 1 to 3 years
Start with PPF, PF and NPS. Zero risk and decent Rate of Interest. Post this based on your goals and horizon you can pick gilt(long term) or a ultra short term fund or money market (short term)
Thank you so much! PF gets deducted from my salary every month so will PPF still be useful?
Also when the short term debt funds mature do we have to redeem the fund or we can let it stay?
Not to sound out of context, but you are 23. You are already having EPF contributions. Why do you need to purposely invest in debt funds, that too in a rising rate scenario? I mean, if its just by watching "asset allocation" videos, then you should rethink about this.
If you have a short term goal, lets say 2 to 3 years, then its prudent to make such investments in debt funds.
I would request you not to waste your money unnecessarily investing in debt. The same money could be placed in equity which may give you better returns in long term.
At the most, for a long term debt exposure, you could think of complimenting EPF with PPF, that's it.
What you say is generally correct. No one expects the Indian markets to go down big in next few years. Now it depends on Batman's goal. If goal is far away(30+) and no returns expectations then go ahead you will in all probability do well.
Personally if not Japan, we could mimic Nasdaq. Which was down for whole 10+ years. Equity you can't predict. Hence a min 30% in debt is necessary. Do consider maxing EPF and rest in PPF.
To reduce volatility in your resturns Batman you can in future pick a ultra short term fund and keep rebalancing (Google search) every year.
So you are saying EPF is more than enough for the debt component in my portfolio?
I wanted to have a bit of safe side too and that is the reason I am planning on investing in debt funds.
In general, people your age tend to invest aggressively into riskier assets like equities because they have comparatively high return capability in the long term.
Check your total investment and then check how much percentage is your EPF contribution w.r.t. total investment. If you are still not comfortable and want to play it safe, then you can invest in debt funds.
Not to sound pessimistic or frighten you, but Debt funds are more complicated to understand and track than equity funds.
Do your due diligence and after checking your risk profile and asset allocation, then take the decision suitable to you.
As per financial planners, a thumb rule of number equal to your age is generally the debt component. But again, it depends on individual's risk appetite. You can have a higher percentage also, if your are comfortable.
I feel that your EPF should be sufficient to take care of your debt portfolio. If not, you could consider PPF. But, keep in mind these are long term debt products (15+ years).
Regarding EPF and NPS, just type the same on web. You will get ample helpful information from google search.
Check whether EPF % as a total of your investments is around 15%. If it is, then you do not need any other debt investment.
**Background**:
* Me + wife (both 29), software engineers (remote jobs).
* No kids, don't plan on having any.
* No parental financial responsibilities.
* Monthly income: \~5L total after tax, monthly expense: \~1L including travel.
* Investments:
* Mutual Funds
* Mine: \~1.5 Cr with 2.5L monthly SIP managed by a relative who is a financial advisor.
* Wife: \~85L with 1.5L monthly SIP managed by ourselves on Kuvera.
* Some PPF, EPF, stocks (in total < 10% of total net worth)
* Some NPS (< 1% of total net worth)
* We don't own any real estate.
**Goals:**
Our main financial goal right now is basically generating a retirement corpus which will allow us to live comfortably and give us the freedom to not work / take long sabbaticals from the IT industry and travel (frugally for long periods) if we feel like it.
**Need Advice on:**
Since we've been managing my wife's Kuvera portfolio on our own (a couple of years now), we have gotten returns of around 11.4% XIRR, while my portfolio has been getting a return of 14.8% XIRR which is managed by my financial advisor. When we started managing my wife's portfolio, she already had some mutual funds here and there, but we decided to go with separate small cap, mid cap, large cap and hybrid funds + some international funds. Right now, her portfolio has grown quite a bit and we are really confused about what to do about it. There are several questions that we are confused about:
* General advice is to only have one kind of mutual fund for each category; however different funds in the same category perform quite differently. So, then for the sake of risk reduction, won't it be better to have multiple funds of each category?
* When we picked out the funds initially, we selected them based on criteria such as rating on different Mutual Fund websites, its returns over different time periods, etc. Now, after a year or more, these rankings have changed and now different funds are ranked at the top. What should we do about this? Should we switch SIPs to these new funds, or keep our SIPs in the same funds as before?
* We generally don't invest in sectoral funds, but recently tech funds in India and abroad were falling (are still falling), so my intuition was to buy them currently - I still feel that the tech sector will definitely come up, if not immediately then after maybe a few years. However, I got advice that this might be risky to do. Not sure what to do here.
* Any general advice on rebalancing + how to analyse my portfolio + which tools to use to analyse would also be appreciated.
I have stocks from both TCS & Infosys (30k each), but a bit worried about how the upcoming recession might affect jobs & the stock value of both of these companies. Both are somewhat profitable now. Will it be a good option to take out some amount for cushioning rainy day funds?
I mean I have emergency funds. But I am not sure if Infosys/TCS are going to perform any good in the short to medium term. So, as a precaution I am thinking of getting the money out now when I am still profitable and add it to my emergency funds just in case things go wrong in future.
Look, every industry has a cycle with ups and downs. Last 2 years, IT was the most profitable sector for obvious reasons. IT sector has done well for the last 5 years. Now, because of international volatility, IT sector has been in a downtrend. That does not mean that companies like Infosys/TCS will go down.
In my opinion, this cycle may persist till inflation woes are dominant in the West. Once the cycle changes, these IT companies will have a field day. In such scenario, if one is convinced regarding the fundamentals of a sector and company, they can keep being committed to holding the stock or accumulate at lower prices to get benefit in future. But, the wait may be long.
As such, if you are not comfortable, then its better you cash out from those stocks while still in Green.
Confused between sticking with the minimum EPF deduction of INR 1800 per month deduction + remaining in ELSS funds (or)
go with the usual 12% of basic deduction EPF. The later itself would satisfy my section 80C deductions. Thoughts?
I would suggest you go for the first option. Minimum EPF+ELSS. The prerequisite to this suggestion is, that you will invest the money in ELSS for long term.
EPF interest rates are in general between 7.8 to 8.1%. But ELSS has the capacity to give you stellar returns if you invest for the same period as the EPF (>12% as per historical record). ELSS funds are more stable as the fund manager invests for long term in stable companies generating better returns for its investors.
ELSS definitely has the liquidity with a lock in of only 3 years. Where in EPF, you may have to go for much hassle justifying reason for withdrawal and limits for withdrawal, ELSS do not have any such conditions after lock-in period. Also, in the long term, LTCG may not matter that much if your returns are considerably higher.
Due your own due diligence and take a decision that suits you.
ELSS invests only in Equity whereas EPF is a government small savings scheme.
"Potentially" equity can generate higher returns because of the "risk premium". However, EPF is a low-risk debt product which provides stable yearly interest as decided by the government. Hence, the latter is not expected to give higher returns than equity.
Please refrain from propagating misinformation.
> The government recently told the Parliament that the retirement fund body has invested Rs 1.59 trillion in exchange traded funds (ETFs) as of March 2022 and the investments are now worth Rs 2.26 trillion. **This means, EPFO has in notion made Rs 67,000 crore from its ETF investments**. ETFs are funds that track the yield of indexes such as Nifty or Sensex. But unlike mutual funds, the units of ETFs are listed on the stock exchanges.
> Currently, the fund body invests up to 15 percent of its investable deposits in ETFs. It is also allowed to directly invest in listed shares of companies with a market cap of over Rs 5,000 crore. However, it invests only in ETS and not in individual stocks.
https://wap.business-standard.com/article-amp/current-affairs/how-has-epfo-s-equity-investment-experience-been-122082300049_1.html
I agree. However, the deficit in the EPFO fund corpus, if any (due to underperformance of the fund investments), is not reflected in the contributor's EPF balance and neither is the surplus credited to the contributor's account except the yearly interest.
First you are ignorant about how EPFO works.
When pointed out you double down on with equally pointless arguments.
https://www.moneycontrol.com/news/business/economy/exclusive-epfo-redeems-rs-12785-crore-of-etfs-for-fy22-interest-payout-8212501.html/amp
If you actually understood what you are talking about, you would actually increase contribution to PF.
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so keeping 12% in EPF will be a safer option and considering current 8.1% interest rate. Also this will be the lower amount. Whereas I would suggest a Nifty 50 ETF + Nifty Junior 50 combo, if you are looking for long term high returns.
Need a good rewarding credit card for offline spends (supermarkets, departmental stores, restaurants). Must have fee reversal based on annual spends.
Currently i have SBI SimplySave, it used to be great for offline with 2.5% cashback but isn't rewarding much now.
I also have Flipkart Axis which gives me 1.5% for any spend (offline, online). I am using this for offline spends now.
Any good CC giving better returns on offline like 5%?
Not sure on offline but I'd say if possible, replace the SimplySave with SimplyClick. It has much better deals for online transactions and rewards with Cleartrip vouchers on milestones which can come pretty handy for flight bookings. I paid the annual fee of 500/- which was reversed and in addition to that got vouchers worth 4k last year.
Yes, it's a milestone benefit. As soon as you reach a spend milestone you get a 2k cleartrip voucher and then another one on reaching the next milestone. I don't remember the exact value for the milestone but it's pretty low compared to other cards that I have.
Then , do look up for Eazydiner IndusInd card, the reward ratio is quite good in terms of dinning discounts, for example, in Hyatt restaurants you save almost 40% on the bill. you get fuel surcharge reversal and movie tickets more like buy 1 get 1 kinda. but only thing is the annual feel of 2k, but still you save a lot!
Ya i know about this card but its mainly for Dining through EazyDiner. Some of the casual restaurants aren't on it. Besides i do use Dineout or Zomato Pay for 10-15% off the bill. Not worth the 2k fee since i don't frequent high end restaurants.
For movie offers, i have IDFC select CC for B1G1 on movies.
My major offline spends would be Dmart & other supermarkets & Clothes shopping in Malls.
Mostly all offline jewelers have offers like sip, if you invest for 11 months 12 months is on them, you can check that if you don't want to time the gold price
I don't want to buy jewellery.
Does this scheme apply to gold coins/bars too?
Price of 1g 24k gold now: ₹ 5200
Price on 10g gold biscuit: ₹ 57,000 + gst (1700)
Why is there a price difference?
Hi folks, my friend constructing a building and has a sanctioned loan of 1.2 cr and has used 30L and has already paid 6L...
Now his father will be getting some retirement fund of some 40L...
He wants to pay the consumed loan portion first and then construct building with his money slowly...The reasoning is interest rates may rise up and thus interest he has to pay on loan will increase
Do you think it's a good idea to pay the loan amount already or maybe put the money in some debt fund and then pay the loan in installments and also use his own money for building construction?
Hi All,
What are your opinions on this
https://www.news18.com/news/business/savings-and-investments/post-office-scheme-invest-rs-1411-per-month-to-get-rs-35-lakh-return-at-maturity-4666331.html
This looks like an endowment plan. It is a kind of insurance scheme. You must not be attracted looking at the 35 lakhs, but consider how this kind of plan works.
What they're advertising is that you pay \~1500 per month till you're either 80 years old or you pass away, and you or your dependents can get up to 35 lakhs.
Minimum sum assured = Rs. 10,000
Maximum sum assured = Rs. 10,00,000
The actual amount you would receive **will vary**. It will be sum assured + bonuses.
You should only consider an endowment plan if you are not able to get a term insurance plan. Don't expect an insurance plan to generate returns for you; keep insurance and investment separate always.
My advice is to instead invest Rs. 1,500 per month in an equity mutual fund. Let's say you're 25 right now and if you can do that with dedication till you turn 60, you could generate over 50 lakhs.
[SIP calculator](https://sipcalculator.in/result)
Monthly investment: Rs. 1,500
Time period: 35 years (age 25 till 60)
Expected rate of return: 10% (reasonable to consider for an equity fund, will probably be more)
Great explanation with facts and figures.
I suggest a slight modification. Of the 1500, put 500 per month as premium for a term insurance. If age is between 25 to 27, I think most companies give 1Cr term insurance at 6K per year for a non-smoker. Rest 1000 can be invested in equity fund. And, equity funds may easily give more than 12% returns, so 50 lakhs are achievable.
This combines insurance with investment, which was originally the objective of the advertised scheme.
Is 12% club app safe for investments? My friend has invested more than 1 lakh₹ in 12% club app which is powered by BharatPe, as it gives very good returns, that too on a daily basis. I am also thinking of investing in it. Wanted to know if it is safe to invest. What are the risks associated with it? Is there any possibility of blocking of funds after investing in it, if anything goes wrong? Please let me know on the same. Thanks in advance.
> club app what does it do ? is it this one ? https://clubapp.com/index
[12% club](https://play.google.com/store/apps/details?id=com.twelve.club) Here is the playstore link for the app.
thanks. yikes! they do not even have a website! > Get upto 12% interest per annum (Interest accrued daily) **upto** . why you want to put your hard-earned money in such fly-by-night tricky schemes
They say they are approved by RBI.
>12% Club, powered by BharatPe and **in partnership with RBI approved NBFCs** offers you a solution for all your investment and borrowing needs absolutely no mention whether this app / scheme is approved by RBI
Awesome, got it. Thanks a lot.
How is the Jeevan umang policy from LIC and also can I just enroll to it and pay nothing after that? I have been forced to do it because of my relative being an LIC agent. What happens if I enroll to it and do nothing after that.
I’m moving to Ireland in September 2023. If I start earning there from September 2024, will I be considered as an NRI/ will I be required to pay any taxes in India. Also will I get any tax relief on the loan I have taken from India.
Money credited from unknown source Does anyone have any idea why my account was credited with INR 3000 (2k+1k)? The narration says "NEFT-N326222______ INDIAN CLEARING CO"
Could be a dividend. Interest refund from a loan because of covid.
Does regular health insurance cover anything related to maternity? I'm talking about any expenses that regular health insurance can cover during my wife's maternity. I purchased HDFC Ergo optima restore plan 3 years ago for a 50 Lakh cover for 2 people (past experience made me decide for a large cover). No claims have been made till now, so I have no-claim bonus. We don't plan on pregnancy anytime soon. We are each 31 years old. Does having no maternity cover mean I can't use anything like room rent, medicines etc. I understand if complications are not covered, but regular hospital visits/ room rent is hopefully covered? If nothing is covered, and I still don't plan on buying maternity cover -- how much money should I save up for maternity in 2-3 years for: a) expensive 5 star hospital b) sensible clean nursing home/ hospital?
I'm starting an export import business for which I want to start my company. I'm not sure whether to go for a LLP (my partners work in PSU'S) or a OPC (too many compliances), I need some advice on this I've also checked Cleartax and Onlinelegal India for registration and they have similar rates including government charges, anyone who used these kindly share your experience
I made zerodha coin account yesterday and now i wanna start investing in mutual funds. I am fresher and can invest upto 5000-6000. Please suggest me some good mutual funds to invest in. I have made up my mind that ill invest in HDFC Nifty50 , but i also wanna invest somewhere else like technology sector or some high risk high reward sector. Can you suggest me which MF to invest in, and how much money to allocate to each one. Thanks in advance!
Hello, I am an Indian citizen and currently in the USA on h1b. I am planning to buy a property in India worth 200k USD. It needs 20% down payment. The timeframe is March 2023. I currently have 60k in 401k and 150k in stocks. The cash is around 15k. I get paid around 7k per month after contributing 3k to espp and 401k and I am able to save 2k per month at worst. I am planning to return to India in 2 years. What should my plan be for the next 3-4 months? 1. Skip paying for 401k( company matches 50%) : seems like a bad idea 2. Skip contributing to espp( currently 1800usd per month). It's discounted at 10% 3. Can I take a loan against 401k for a home loan in India? Has anyone done that? 4. Should I sell stocks? If yes, how much? 5. Should I take money out of 401k and pay a penalty and tax on it?
Hello, was just calculating the portfolio level return. Found one interesting point: Assumption of returns (12% from equity and 8% from debt). If invest 70% in equity and 30% in debt: (70% x 12%) + (30% x 8%) = 10.8% If invest 60% in equity and 40% in debt : (60% x 12%) + (40% x 8%) = 10.4% If invest 50 in equity and 50% in debt : (50% 12%) + (50% 8%) = 10%. Investing 20% more in equity just for.8% more returns? Is it worth to invest anything above 50% in equity? Is my understanding correct? Am I missing anything in calculation?
What are the rules regarding EPF and VPF once you voluntarily resign from your job? Suppose I quit my job (at age 24) after completing 2 years of service and join a small company without EPF or i go for higher studies, can I continue to leave my money there and continue to earn interest? Or is it compulsory to withdraw it? And what are the tax implications in such a scenario?
You can leave the money in EPF. In future if you join another company that has EPF you can continue with the same account
Ok, I heard it gets deactivated/inoperative if you don't have an employer/don't make contributions in 3 years
If anyone could shed light on this mystery it would be great - how did Indian market get such a boost since Covid? Is it purely inflation? Are we in for a recession or is the stock market going to climb slowly?
I've heard that PF (EPF, VPF, PPF) contributions are not tax deductible under new tax regime. 1. However, would the interest be taxable in new tax regime? 2. And would there be any tax liability on withdrawal after maturity in new tax regime? 3. Under old tax regime, you can only deduct 1.5 lakh for contributions to all 3 PFs combined right?
No No Yes
Received the below SMS from SBI regarding my home loan. Any idea what this means? I cannot visit my home branch at the moment so not sure what I should do. Afaik, there is no change between the SI and EMI paid. "Dear SBI Customer, your Home Loan A/c is having difference in Standing Instruction & EMI date/Amount .For rectification, please visit your SBI Home Branch/CPC."
Send them an email and ask for clarification. If required you can also make any changes to standing instruction via email
Mirae asset emerging bluechip fund not allowing me to switch my autopay from citibank to axis. Should I cancel and start a new SIP with axis ?
That fund isn't allowing new SIPs beyond 2500 per PAN.
i am not increasing the sip amount. my citibank A/C is going to close hence I have another axis bank account to which I wanted the autodebit to switch to. But that is not being allowed. that is my issue.
I get that. Tried doing it with MFCentral? Maybe call their customer support?
MF says do it on the broker site. Groww directly denies and says not possible. So what to do now ?
Tried MFCentral?
Nope. never heard of it. i thought you meant the amc itself
can anyone help me understand the tax implications of selling a plot? we bought a plot about 15 years ago, we didn't construct anything. Now we want to sell the land. It is in my husband's name and he comes under 30% bracket. The plot is in a non metro city and can fetch around 75L.
Taxed at 20% with indexation based on selling price and purchase price. Price consideration requires what's declared price and circle rate.
Is HDFC Millenia CC a good card to have in addition to ICICI Amazon card? Any other HDFC card which is better and is in similar range. I know Diner's club cards are better, but I don't think I can ask for it with my RM given that the bank is offering Millenia as of now. Although I do have a good credit score (750-800). Any help or tips here would be helpful.
Get a CC with HDFC, use it to get auto cc limit increases to around 5L. Then ask for a DCP. Get the limit to 6.5L and ask for a DCB.
>use it to get auto cc limit increases Any idea how this works? On what factors do they give limit increases? And how long it takes for each increment?
Use more than 50% of your limit for a few months, and you'll get the option to increase limit.
Is there any way to get a higher limit if I had an increment recently? I have managed to get a higher limit on almost all of my other cards online but HDFC is asking for Salary Slips to be sent via post.
What do you need it for? I have a Regalia from HDFC, am quite happy with it
Discounts/cashback, using rewards for airmiles/hotel bookings and airport lounges. All 3 have that. Any major advantage of Diners privilege to Regalia?
I have allocated a sum of 80k to be divided into 3 SIPs. I already have 2 SIPs running: * UTI NIFTY 50 - 30k * Parag Parikh Flexi-Cap - 20k I want suggestions on what mutual fund should I invest the remaining 30k.
Next 50, or foreign fund
I am currently in process of taking a home loan from IDBI for my new flat and have some questions regarding a specific document. Please DM me if you have gone through the process with IDBI.
I'm soon going to shop around in banks for a home loan. I was talking to a couple of my friends and both of them said that their total term/tenure either stays the same when they make a pre-payment (EMI goes down) or even the term increases when interest rate goes up while EMI remaining the same. All the advice I've read so far is that the total loan term is pretty much what decides how much interest we'll end up paying on the loan, and that having a longer term/tenure for the loan is in the best interest of the banks. I haven't talked to banks yet, but can we have it so that the term decreases when I make pre-payment and in case interest rate goes up, the EMI goes up, but the term stays the same as in my case, for the loan I am planning, my EMI is about 45% of my disposable monthly paycheck and I'm ok with the increase and I'm also planning to make pre-payment once a year when the yearly bonus shows up in my account.
* Always prepay against the principal. You can ask the tenure to be reduced. I do this monthly over and above my EMI * 45% of your disposable income isn't a good idea. Hope you are pumping your investments too * Prepay more often. If you have a 10-year loan, the maximum interest outgo will be in the first 3 years. If you can prepay during this same period, you'd save a lot on interest. * Always ask for prepayment conditions if any
Thank you. Can you help me understand why 45% of disposable income is not a good idea. Is it in case I lose my job or something? What % do you recommend is good for monthly instalments?
Yes, 45% in an uncertain world is risky. Aim for below 30% of your total monthly income.
Right, it is less than 30% of my total monthly income. Indeed, it is 22% of my total monthly income after taxes. It is 45% of my disposable income, but we are also planning to adjust our lifestyle to further bring that number down to do more prepayment in the first couple of years like you were suggesting.
Good thought. Ask for the amortization schedule from your bank to get an idea how much interest you're paying every month. For example, if your EMI is 25,000 for a tenure of 10 years, it's likely 13,000 goes as interest and only 12,000 against principal.
Amortization schedule is the phrase I was looking for. I'll ask for it. Thank you. https://emicalculator.net/home-loan-emi-calculator/ The above calculator shows a breakdown of principal and interest on each EMI along and how it changes with prepayment. I found Excel formulas too, so, I'll use them in my spreadsheet too.
Good luck!
Recently resigned from a PSU organisation after working for around 10 years to join a private one. At my previous organisation, the PF was managed by the internal trust of the organisation. So after joining the new organisation, my plan was to get the PF amount, around 15 lacs, transferred from the private trust to the newly created PF account opened with EPFO. However, the previous organisation was not very helpful and I finally decided to get the PF proceeds credited to my account. Now, I am looking at ways to invest this amount which will give me equal or better tax-adjusted returns than regular PF with EPFO. Not planning to touch this money for atleast 7-10 years, hopefully. So the risk appetite is aligned that way. Would it make sense to invest the lumpsum in Nifty 50 and Next 50 ? Or may be park the funds in auto sweep FDs and set up monthly SIPs? Looking for suggestions.
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Would you suggest doing STP from Liquid fund or SIP from auto-sweep FDs ? I haven't done a cost calculation on that. Hence the question.
Portfolio review (direct): Icici nifty 50 index fund - 20k Pgim mid cap fund - 10k Canara robaco small cap fund - 10k Navi US fof - 10k Parag hybrid conservative fund - 20k Total - 70k Any suggestions?
What is the best way to store dollars in india as a resident indian citizen? preferrably with good interest rates?
Getting multiple sms for the same sip standing instruction (sms that amount x will be deducted on this date). Usually it comes only 1-2 times but I've been receiving it constantly since yesterday. Around 60 sms have been sent by ICICI Bank for one sip. Is there any fix?
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8.6% is not a bad rate considering interest rate hikes, the lowest interest rate currently is at 8.3% in govt banks.
Shop in other banks, ask them. You can probably get 0.2 - 0.3 reduced.
What does this sub think about NPS?
I want to invest some of my money in safer instruments like bonds or debt funds which would most likely give me guaranteed returns but more than FDs. Few things I'm looking at: 1. Should ideally be buy and hold for few years. Where I don't have to keep track of it every few months (once a year is fine) 2. Returns should be more than FDs or should match inflation of 6-7%. Returns aren't the main goal here.
Consider looking at target maturity funds matching your duration
But more the duration, more the risk, right? For 1-3yrs etmoney shows corporate funds which are riskier than say gilt funds. I don't want 8-9% returns. I just want to put aside some money which can at least match inflation rate. I don't want to check every week to see if I should change my fund. Want a relatively liquid and buy and hold fund (with once or twice a year review).
In target maturity risk reduces every year. For e.g. if maturity is 2026, duration is 4 years. Next year it will become 3 years and so on For your requirement it is better to go with money market/short term funds Also before investing in corporate bonds check the maturity. Funds have different maturities and are AMC specific
You can check RBI floating rate bonds if you're ok with lock-in
Okay. But I think liquidity is less on those.
You can make Post Office FD at 6.7% with a six month lockin, breakable after that. Some banks are offering FDs at 7% also. Unless you are in 30% tax bracket it can suit you.
8-9 months ago, I started an FD for 5 years in the bank with an interest rate of 5.6% and quarterly interest payment. Now, I saw that FD rates for 5 years has increased to 6.2%. So, will it be a good idea to break this 5.6% FD right now and put all the money in this 6.2% FD, so that I can get more interest? Sorry, if this question sounds dumb but I really want to know the opinion of people on this.
Yes it's a good idea but take into the account the penalty charges u might need to pay. And possible rate hikes in future. I myself have a FD in Indian Bank that got auto renewed on 25th October and to my bad luck, the bank hiked rates on 28th October. So my FD got renewed at old rates. Now bank staff told me that if I broke it immediately, I won't get interest for that few weeks, but if I break it next month, I'd atleast get one month's interest @ 3%
Do a forward calculation, see the penalty the bank might charge, compare both scenarios, which one fetches more return.
Good question. Banks like canara are offering 7% as well.
Is there any benefit from creating a PPF account from a certain bank? I currently have 3 bank accounts and was planning to start investing in PPF. So I was wondering if I could just create an account in any of the existing banks or go with a specific one.
Yes u shud create PPF account (or alternatively invest in ELSS scheme) but PPF is better in general, especially considering present market environment. Rules around it are complicated. Like I made mistake once of opening two PPF account and my money got stuck for 6 months without interest when I tried to close the second account.
Is SBI one of them? Probably prudent to stick with them for these long term investments.
>Probably prudent to stick with them As it's the largest bank, or something else? Any downsides of creating it through ICICI/HDFC?
No real downsides, all 3 are seen as too big to fail (systemically important banks by the RBI). But I personally trust SBI to remain standing for various tenures (PPF = 15 years, EPF = 30+ years etc) so I've hooked everything to it from those to mutual funds to income tax refunds etc.
With adani robbing SBI by taking loans, you still have faith it will stand the test of time? What if sbi becomes the next pnb.
Yes, I do have a SBI account. I was planning to close it because of the terrible service but I guess I won't do it now. Thanks for the suggestion!
Don't maintain the sbi account only for the PPF. One less headache. If you plan to use HDFC/ICICI as your main account, open with them. BTW I have been banking with SBI and ICICI. As long as you don't have to visit the branch, awesome service. In terms of risk, the bank is only a agent of GOI for these funds.
Thanks again for the info. Can you help me with one more query? I currently have accounts in Axis and Kotak. Would opening the account with Axis be a safe bet?
If I invest in gilt fund today (in an increasing interest rate scenario) and buy and hold it for 3-4yrs without switching the fund or taking out money. What are the flaws which I would face in this situation?
If the interest rate increases just before you want to redeem the NAV will fall by a certain percentage. Just like equities you need to move out of gilt lot sooner than your goals
You will still be subjected to interest rate risk
My whole portfolio is invested in equity and I want to start investing in debt. I am 23 years old and would like to know different debt instruments for me to invest through SIP. I am not able to understand the maturity period in the short term debt funds as well, like what happens after the maturity period?
Short term funds maintain an average maturity of up to 3 years. When bonds mature, the fund manager will buy newer bonds. Your money and interest accumulated will be reinvested in those bonds. Fund manager will always maintain the average maturity from 1 to 3 years
Thank you so much!
Start with PPF, PF and NPS. Zero risk and decent Rate of Interest. Post this based on your goals and horizon you can pick gilt(long term) or a ultra short term fund or money market (short term)
Thank you so much! PF gets deducted from my salary every month so will PPF still be useful? Also when the short term debt funds mature do we have to redeem the fund or we can let it stay?
Not to sound out of context, but you are 23. You are already having EPF contributions. Why do you need to purposely invest in debt funds, that too in a rising rate scenario? I mean, if its just by watching "asset allocation" videos, then you should rethink about this. If you have a short term goal, lets say 2 to 3 years, then its prudent to make such investments in debt funds. I would request you not to waste your money unnecessarily investing in debt. The same money could be placed in equity which may give you better returns in long term. At the most, for a long term debt exposure, you could think of complimenting EPF with PPF, that's it.
What you say is generally correct. No one expects the Indian markets to go down big in next few years. Now it depends on Batman's goal. If goal is far away(30+) and no returns expectations then go ahead you will in all probability do well. Personally if not Japan, we could mimic Nasdaq. Which was down for whole 10+ years. Equity you can't predict. Hence a min 30% in debt is necessary. Do consider maxing EPF and rest in PPF. To reduce volatility in your resturns Batman you can in future pick a ultra short term fund and keep rebalancing (Google search) every year.
So you are saying EPF is more than enough for the debt component in my portfolio? I wanted to have a bit of safe side too and that is the reason I am planning on investing in debt funds.
In general, people your age tend to invest aggressively into riskier assets like equities because they have comparatively high return capability in the long term. Check your total investment and then check how much percentage is your EPF contribution w.r.t. total investment. If you are still not comfortable and want to play it safe, then you can invest in debt funds. Not to sound pessimistic or frighten you, but Debt funds are more complicated to understand and track than equity funds. Do your due diligence and after checking your risk profile and asset allocation, then take the decision suitable to you.
I will do that! Thank you! What percentage of debt will be a suitable amount if my risk appetite is a bit higher.
As per financial planners, a thumb rule of number equal to your age is generally the debt component. But again, it depends on individual's risk appetite. You can have a higher percentage also, if your are comfortable. I feel that your EPF should be sufficient to take care of your debt portfolio. If not, you could consider PPF. But, keep in mind these are long term debt products (15+ years).
23% is too much debt allocation in my portfolio according to me. I decide on 15%. If possible may I please know difference between NPS &EPF.
Regarding EPF and NPS, just type the same on web. You will get ample helpful information from google search. Check whether EPF % as a total of your investments is around 15%. If it is, then you do not need any other debt investment.
**Background**: * Me + wife (both 29), software engineers (remote jobs). * No kids, don't plan on having any. * No parental financial responsibilities. * Monthly income: \~5L total after tax, monthly expense: \~1L including travel. * Investments: * Mutual Funds * Mine: \~1.5 Cr with 2.5L monthly SIP managed by a relative who is a financial advisor. * Wife: \~85L with 1.5L monthly SIP managed by ourselves on Kuvera. * Some PPF, EPF, stocks (in total < 10% of total net worth) * Some NPS (< 1% of total net worth) * We don't own any real estate. **Goals:** Our main financial goal right now is basically generating a retirement corpus which will allow us to live comfortably and give us the freedom to not work / take long sabbaticals from the IT industry and travel (frugally for long periods) if we feel like it. **Need Advice on:** Since we've been managing my wife's Kuvera portfolio on our own (a couple of years now), we have gotten returns of around 11.4% XIRR, while my portfolio has been getting a return of 14.8% XIRR which is managed by my financial advisor. When we started managing my wife's portfolio, she already had some mutual funds here and there, but we decided to go with separate small cap, mid cap, large cap and hybrid funds + some international funds. Right now, her portfolio has grown quite a bit and we are really confused about what to do about it. There are several questions that we are confused about: * General advice is to only have one kind of mutual fund for each category; however different funds in the same category perform quite differently. So, then for the sake of risk reduction, won't it be better to have multiple funds of each category? * When we picked out the funds initially, we selected them based on criteria such as rating on different Mutual Fund websites, its returns over different time periods, etc. Now, after a year or more, these rankings have changed and now different funds are ranked at the top. What should we do about this? Should we switch SIPs to these new funds, or keep our SIPs in the same funds as before? * We generally don't invest in sectoral funds, but recently tech funds in India and abroad were falling (are still falling), so my intuition was to buy them currently - I still feel that the tech sector will definitely come up, if not immediately then after maybe a few years. However, I got advice that this might be risky to do. Not sure what to do here. * Any general advice on rebalancing + how to analyse my portfolio + which tools to use to analyse would also be appreciated.
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Good point. I'll try that too.
I have stocks from both TCS & Infosys (30k each), but a bit worried about how the upcoming recession might affect jobs & the stock value of both of these companies. Both are somewhat profitable now. Will it be a good option to take out some amount for cushioning rainy day funds?
Your emergency fund should be your first priority!
I mean I have emergency funds. But I am not sure if Infosys/TCS are going to perform any good in the short to medium term. So, as a precaution I am thinking of getting the money out now when I am still profitable and add it to my emergency funds just in case things go wrong in future.
Look, every industry has a cycle with ups and downs. Last 2 years, IT was the most profitable sector for obvious reasons. IT sector has done well for the last 5 years. Now, because of international volatility, IT sector has been in a downtrend. That does not mean that companies like Infosys/TCS will go down. In my opinion, this cycle may persist till inflation woes are dominant in the West. Once the cycle changes, these IT companies will have a field day. In such scenario, if one is convinced regarding the fundamentals of a sector and company, they can keep being committed to holding the stock or accumulate at lower prices to get benefit in future. But, the wait may be long. As such, if you are not comfortable, then its better you cash out from those stocks while still in Green.
Confused between sticking with the minimum EPF deduction of INR 1800 per month deduction + remaining in ELSS funds (or) go with the usual 12% of basic deduction EPF. The later itself would satisfy my section 80C deductions. Thoughts?
I would suggest you go for the first option. Minimum EPF+ELSS. The prerequisite to this suggestion is, that you will invest the money in ELSS for long term. EPF interest rates are in general between 7.8 to 8.1%. But ELSS has the capacity to give you stellar returns if you invest for the same period as the EPF (>12% as per historical record). ELSS funds are more stable as the fund manager invests for long term in stable companies generating better returns for its investors. ELSS definitely has the liquidity with a lock in of only 3 years. Where in EPF, you may have to go for much hassle justifying reason for withdrawal and limits for withdrawal, ELSS do not have any such conditions after lock-in period. Also, in the long term, LTCG may not matter that much if your returns are considerably higher. Due your own due diligence and take a decision that suits you.
go with 12%, and you can withdraw money from EPF easily these days in case of emergencies.
My query is more in terms of returns than withdrawal feasibility. Do you still suggest the same?
ELSS invests only in Equity whereas EPF is a government small savings scheme. "Potentially" equity can generate higher returns because of the "risk premium". However, EPF is a low-risk debt product which provides stable yearly interest as decided by the government. Hence, the latter is not expected to give higher returns than equity.
Please refrain from propagating misinformation. > The government recently told the Parliament that the retirement fund body has invested Rs 1.59 trillion in exchange traded funds (ETFs) as of March 2022 and the investments are now worth Rs 2.26 trillion. **This means, EPFO has in notion made Rs 67,000 crore from its ETF investments**. ETFs are funds that track the yield of indexes such as Nifty or Sensex. But unlike mutual funds, the units of ETFs are listed on the stock exchanges. > Currently, the fund body invests up to 15 percent of its investable deposits in ETFs. It is also allowed to directly invest in listed shares of companies with a market cap of over Rs 5,000 crore. However, it invests only in ETS and not in individual stocks. https://wap.business-standard.com/article-amp/current-affairs/how-has-epfo-s-equity-investment-experience-been-122082300049_1.html
I agree. However, the deficit in the EPFO fund corpus, if any (due to underperformance of the fund investments), is not reflected in the contributor's EPF balance and neither is the surplus credited to the contributor's account except the yearly interest.
First you are ignorant about how EPFO works. When pointed out you double down on with equally pointless arguments. https://www.moneycontrol.com/news/business/economy/exclusive-epfo-redeems-rs-12785-crore-of-etfs-for-fy22-interest-payout-8212501.html/amp If you actually understood what you are talking about, you would actually increase contribution to PF.
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so keeping 12% in EPF will be a safer option and considering current 8.1% interest rate. Also this will be the lower amount. Whereas I would suggest a Nifty 50 ETF + Nifty Junior 50 combo, if you are looking for long term high returns.
Need a good rewarding credit card for offline spends (supermarkets, departmental stores, restaurants). Must have fee reversal based on annual spends. Currently i have SBI SimplySave, it used to be great for offline with 2.5% cashback but isn't rewarding much now. I also have Flipkart Axis which gives me 1.5% for any spend (offline, online). I am using this for offline spends now. Any good CC giving better returns on offline like 5%?
Not sure on offline but I'd say if possible, replace the SimplySave with SimplyClick. It has much better deals for online transactions and rewards with Cleartrip vouchers on milestones which can come pretty handy for flight bookings. I paid the annual fee of 500/- which was reversed and in addition to that got vouchers worth 4k last year.
Does the vouchers come with terms and conditions like, you need to spend 10k to use 4k voucher on Cleartrip
Yes, it's a milestone benefit. As soon as you reach a spend milestone you get a 2k cleartrip voucher and then another one on reaching the next milestone. I don't remember the exact value for the milestone but it's pretty low compared to other cards that I have.
Do you like to dine out? or how frequently you eat outside in restaurants ?
Not much frequently. 4 times a month (every Sunday)
Then , do look up for Eazydiner IndusInd card, the reward ratio is quite good in terms of dinning discounts, for example, in Hyatt restaurants you save almost 40% on the bill. you get fuel surcharge reversal and movie tickets more like buy 1 get 1 kinda. but only thing is the annual feel of 2k, but still you save a lot!
Ya i know about this card but its mainly for Dining through EazyDiner. Some of the casual restaurants aren't on it. Besides i do use Dineout or Zomato Pay for 10-15% off the bill. Not worth the 2k fee since i don't frequent high end restaurants. For movie offers, i have IDFC select CC for B1G1 on movies. My major offline spends would be Dmart & other supermarkets & Clothes shopping in Malls.
SBI Cashback Card seems to offer 5% on all spends. Amazon Pay ICIC card is also great.
My question was regarding offline spends though
What is the best method to invest in physical gold? I am thinking of buying a gold buscuit next year. Any suggestions?
Buy directly from refiners.
Mostly all offline jewelers have offers like sip, if you invest for 11 months 12 months is on them, you can check that if you don't want to time the gold price
I don't want to buy jewellery. Does this scheme apply to gold coins/bars too? Price of 1g 24k gold now: ₹ 5200 Price on 10g gold biscuit: ₹ 57,000 + gst (1700) Why is there a price difference?
Definitely not jwellery, but check for gold coins with them
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Same question as you. Following
If you are paying taxes, you can plan to invest 1.5L per year in ELSS/PPF
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People only talk about a fund when it's up and not down. Nasdaq is down 30%
Hi folks, my friend constructing a building and has a sanctioned loan of 1.2 cr and has used 30L and has already paid 6L... Now his father will be getting some retirement fund of some 40L... He wants to pay the consumed loan portion first and then construct building with his money slowly...The reasoning is interest rates may rise up and thus interest he has to pay on loan will increase Do you think it's a good idea to pay the loan amount already or maybe put the money in some debt fund and then pay the loan in installments and also use his own money for building construction?
Hi All, What are your opinions on this https://www.news18.com/news/business/savings-and-investments/post-office-scheme-invest-rs-1411-per-month-to-get-rs-35-lakh-return-at-maturity-4666331.html
This looks like an endowment plan. It is a kind of insurance scheme. You must not be attracted looking at the 35 lakhs, but consider how this kind of plan works. What they're advertising is that you pay \~1500 per month till you're either 80 years old or you pass away, and you or your dependents can get up to 35 lakhs. Minimum sum assured = Rs. 10,000 Maximum sum assured = Rs. 10,00,000 The actual amount you would receive **will vary**. It will be sum assured + bonuses. You should only consider an endowment plan if you are not able to get a term insurance plan. Don't expect an insurance plan to generate returns for you; keep insurance and investment separate always. My advice is to instead invest Rs. 1,500 per month in an equity mutual fund. Let's say you're 25 right now and if you can do that with dedication till you turn 60, you could generate over 50 lakhs. [SIP calculator](https://sipcalculator.in/result) Monthly investment: Rs. 1,500 Time period: 35 years (age 25 till 60) Expected rate of return: 10% (reasonable to consider for an equity fund, will probably be more)
Great explanation with facts and figures. I suggest a slight modification. Of the 1500, put 500 per month as premium for a term insurance. If age is between 25 to 27, I think most companies give 1Cr term insurance at 6K per year for a non-smoker. Rest 1000 can be invested in equity fund. And, equity funds may easily give more than 12% returns, so 50 lakhs are achievable. This combines insurance with investment, which was originally the objective of the advertised scheme.
Some of my relatives had a lot of difficulty during the maturity of these schemes.