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  • Category: Miscellaneous

    The best way to invest money

    The people will try to save some money from the earnings of today to take care of their expenditures during the retired life or for some unexpected expenses. It is always thought of a common man to keep the money in banks as the Fixed deposit is the safe way. But as the rates of interest are coming down and the inflation rates are increasing, the money kept in FDs is actually becoming less than what we have deposited. So many people thought that keeping in Mutual Funda is the best bet. It will give good results and risk is also less. But, after this budget, the returns on capital gains are also taxable. So the common man is in a fix. What is the best way to keep our money safe and at least growing at an equivalent rate of inflation? This is the question many have in their minds now. I like to know the views of our learned members.
  • #626197
    It is a million dollar question which has been haunting the individuals, particularly the senior citizens, since ages as to where to invest the money.
    There are primarily two modes of earning through investing-
    1. Buying something which increases in value over a time period e.g. gold, real estate etc.
    2. Letting others to use one's own money for profit and get an interest on the money so invested e.g. investing in bank deposits, mutual funds etc.

    I myself being a senior citizen and a common man bereft of any specialised training in financial management, continuously ponder over such issues and often get confused primarily because of the age factor.
    However, I have learned, so far, this much that there is no magic wand which can multiply our savings overnight irrespective to the number of restless and sleepless nights spend by us.
    At advanced age, we cannot think about investing in such options which yield remarkable results over a period of 10-15 years or more.

    To sum up, in my opinion, investing in monthly dividend paying mutual funds is a better option for senior citizens who require regular monthly income.

    Let us encourage each other in sharing knowledge.

  • #626200
    Now a days saving in the bank has become non importance as the interest offered is meagre and when the time comes for withdraw they are forcing the account holder to continue. So there is no charm in investing in bank fixed deposits. What I suggest that look out for developing area were the plots are being created and invest there at the initial stage. And when the full venture has been over, then resale. Surely land appreciation would be there and you will be benefited. Like wise when a apartment is in pillar stage, invest a part of money as advance and later sell it to prospective buyer and thus can make money. But these are having risk factors. Not all lands will bring you instant fortunes nor all new flats being constructed would bring instant gain. However some investors are doing it wisely and getting benefited.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #626205
    In earlier days, people including retired people used to invest money in the Provident Fund and Fixed Deposit, used to get a good interest and used to enjoy life contentedly. But the situation has changed drastically. The rates of return of PF and FD have been moving downwards quarter by quarter. So, for a good inflation-protected return, people have to move to mutual funds. For inflation-protected return with minimum risk, the aged investors have to go for debt-oriented hybrid mutual funds, which, in common parlance, is known as MIPs.
    Beware! I question everything and everybody.

  • #626492
    Banks are under huge pressure to balance the books, improve buissness and show profits.

    A FD traditionally was the safe instrument for Indians but it locks the money and encourages people to save thereby reduce the spending and business in bank transactions.

    Further on, a reduction in interest rates on FD and added an increase in the long-term capital gains would be to discourage people from saving too much and looking at other means to save or spend usefully.

    Nothing that comes free in the form of advise suits all especially related to money investments. It would be good to choose a good financial planner, paying them the consultation charges or indirectly by means of the commission they generate from our investments.

    For an average person, the investments need to be spread out into equities, MFs, gold, real estate and pension plans(yes, these are a form of investment too). Once done, the allocation and performance in the sectors need to be monitored periodically and more regularly in the case of equities and MFs.

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