If you have quite some dead money lying in the bank giving you interest at 3.5% annually then see how you can make it work for you to give more than FD.
In a comment Srinivas asked
Hello sir can You please guide me about best investment instrument option to park my lumpsum amount for about a year without much risk (as seen in equity shares or equity mutual funds)- liquid funds? debt funds? Money market?Corporate bonds? Govt securities or bank FDs ? . I’m totally confused between all these. And also mention about the tax on the returns from investing or parking lumpsum in such instrument. Thank you in advance. You r doing a nice job for beginners like us. Keep it up. 🙂
Question sounded to me interesting as well as very tricky and this is the problem of many of us where people have quite some dead money ( I prefer calling money in your saving account as dead money ) lying in the bank giving you interest at 3.5% annually and so instead of keeping it dead Srinivas at least thought of making it live and so I would suggest you some options. Remember I am not an investment advisor.
As investment should be without much risk, all out equity investment is not good option but yes you can park 10%-20% into some good mutual funds which I have suggested in my ebook.
Apart from the equity based investment I would suggest you avoid Liquid Funds but you can invest in liquid plus funds. Unlike liquid funds, they will keep some portion of your investment in instruments with a maturity of more than 91 days and hence get classified as debt funds which are more tax-efficient as well. Remember this is for short term and get good returns but should not be left for complete year into them.
Bank Fixed Deposits income is all taxable but if you invest in mutual funds and remain invested for more than one year into a single fund your income is tax free but before investing check the fund details about the taxing information on that particular fund.
For the Definitions of the terms where you have confusion I would suggest read Mutual Fund Terms.
Hi… Shabbir,
I have gone through ebook it is very very informative and your blogs are also inspiring for insvestment.
I wanted to make SIP for retirement and some other short term planning (1-2year).Kindly suggest some funds which I can opt through SIP for good rerutn.
Regards,
F.M.ADHA
Hi,
I am new to stock market and went through your bolg ..very informative..i have gone through technical analysis of dish tv given by you but still dont know how to get that graph on yahoo finance as i didnt saw any graph for stock on that site..is any training required for getting that graph?i have seen some advertisements in newspaper in which some people provide training and charge 6000 for it..
Jayashree, See the advance flash charts and not basic charts
Hi Shabbir,
Firstly – great site. Keep up the good work.
I am currently looking to save up a bit of money for 3 purposes. In about a year I would like to purchase a car. 2nd I want to save up around 50k for my next years ULIP payment. Lastly to fulfill my 80c requirements I can invest a further 24k.
Basically I would also like to grow the money put in for the first 2 for around 6 months or so and thereby take care of the last condition.
I am not averse to putting some amount in slightly higher risk funds (for around 6 months -9) and the remaining in low risk (for nearly a year). Can you suggest some funds for such a purpose? What are your thoughts about the pharma funds like Franklin and Reliance?
Arjun, I do not suggest funds but I suggest people how to find funds for investment. Refer my eBook where I have listed some good funds as well as suggested methods to find more for you.
yes, sure i have started sip as i told you on your blog, one more thing i want to ask is how do you view gold as an long term investment ,and also whether you preffer physical gold or gold ETF’s
Gold is a very safe investment but not a kind of investment which can multiply in short time but yes if you plan to have a very long term view it should be physical gold but for short term to medium term ETF’s is fine.
hi, what about the investment i have started,i have invested in sip of icici pru tax plan and sundram tax with dividend reinvest 2000 each and sundram mid cap and reliance growth 1500 each.i have a long term plan to stay invested5-10 years. how do u view my investments, what kind of returns should i expect.
I prefer dividend payout and not dividend reinvest and see why in my article
http://shabbir.in/full-tax-saving-without-investing-one-lac/
Rest your investment is a wise one.
hi, it was great to read ur book. i have invested in sip of icici pru tax plan and sundram tax with dividend reinvest 2000 each and sundram mid cap and reliance growth 1500 each.i have a long term plan to stay invested5-10 years. how do u view my investments, what kind of returns should expect. could u suggest good health insurance, life insurance plan , i am 33 years and married with annual salary of 5 lakh. what should be the sum assured in both the plans. are unit linked plans which offer returns also better or should i go for dedicated plans.
I don’t consider life insurance plan but if you would like to do go for a Term Insurance and Invest as you wish. Life Insurance is completely junk.
Health Insurance I am not an expert at that.
HI SHABBIR
BOOK IS REALLY GREAT AND SIMPLE TO UNDERSTAND .I HAVE TAKEN INSPIRATION FROM U . I AM PLANNING TO INVEST IN MUTUAL FUNDS AND SHARES .I WANT UR SUGGESTION ,I AM PLANNING T INVEST 50,000 EACH IN MUTUAL AND SHARES .I M GOING THROUGH VARIOUS SITES .AT PRESENT FINDING IT DIFFICULT T DECIDE WHRE T INVEST?I AM PLANNING MY PORTFOLIO?
I AM PLANNING TO INVEST IN 5 MUTUAL FUNDS WHICH WLL GVE ME GOOD RETURNS .SHOULD I GO FR SIP ,EQUITY OR SECTORS SHARES?FR HW LONG I SHOULD INVEST ?
SHOULD I INVEST IN GOLD FUNDS LIKE AIG AND DSP BLACKROCK?
REGARDING SHARES CAN U SUGGEST 8 TO 10 SHARES WHICH I CAN INVEST FR LONG TIME AND GET GOOD RETURNS?
ALREADY I HAD INVESTED IN INDIA BULLS POWER ? WHAT U THINK ABOUT THAT ?
KAINDLY GIVE UR VALUABLE OPINION ?
THANKS
REGARDS
DRSWAPNIL
I also had your email and was planning to place a reply. In the ebook I have the best funds listed and you can choose all or some from there or also shown the method how to select a fund as well.
Regarding IndiaBulls IPO I would suggest read http://shabbir.in/indiabulls-power-ipo/