Debt funds v/s Fixed Deposits - help

[startrade]

Agreed but what about companies i have mentioned..i did read in papers that some company is refusing to pay interest to investors but that are not heared one..

I(my family members) already have invested in tata motors one

And i am planning to shift my sisters fund from bank fds to known companies one like Unitech ,Jp associates etc

I know its riskier but without risk reward also is not great.

Thats the reason ill keep minimum 6 months or 12 months for fd thats it

Unitech already has a huge debt burden even after massive issues of shares to institutional investors in 2009. Most of their projects in Gurgaon and Noida are either on standstill since last 1-2 years or are 1-2 years behind schedule.

Unitech is not a safe company to put money in by any standard.

 

[magnet]

Unitech already has a huge debt burden even after massive issues of shares to institutional investors in 2009. Most of their projects in Gurgaon and Noida are either on standstill since last 1-2 years or are 1-2 years behind schedule.

Unitech is not a safe company to put money in by any standard.

Even DLF is at that level and they are top 2 construction company of our country...

Its sure they wont fell like lehmen brothers..government or the construction sector itself wont allow that too happen since this will seriously hamper the whole sector

Yes in my other thread too i got a link from bunny where it says to see in all ratings of the company before investing...I might invest in gold now may be coins or demat gold

 

[blitz2280]

Even DLF is at that level and they are top 2 construction company of our country...

Its sure they wont fell like lehmen brothers..government or the construction sector itself wont allow that too happen since this will seriously hamper the whole sector

Yes in my other thread too i got a link from bunny where it says to see in all ratings of the company before investing...I might invest in gold now may be coins or demat gold

One should never buy physical gold from bank or ornaments for INVESTMENT purpose. You can buy it if you like the pleasure of owning gold.

To invest in gold always use ETF.

Here are the important reasons

1. Banks sell gold coins at a premium of 15 percent over the gold rate at that time. This premium is taken for giving the guaranty of purity.

But they will not buy it back, because they do not want to pay you that 15 percent premium. So you are forced to sell it elsewhere and lose the premium amount.

So if you buy gold worth 11500 from a bank. The next day if you sell it to some other source you will get only 10000 rupees.
2. In case of Gold ETF, if you hold it for more than 1 year it is considered as a long term capital. Any profit you get from selling it will be taxed at 20 percent. But in case of gold bar or coin, you need to hold it for 3 years for it to be considered as a long term asset. If you sell it before that time then you have to pay a income tax at 30 percent on the profit.
3. But the tax problem does not end here. After 3 years you need to pay a wealth tax on gold bar or coin at the rate of 1 percent every year which is not needed in case of gold ETF.
4. Finally, gold can get stolen. Bank locker or insurance can cost you a tidy sum.

So in short if you invest in gold then invest in gold ETF not in gold coin or bar.

One more point here is that gold is a good asset for times of crisis. In good times it is better to invest in share market. You will get far more retuns from it.

 

[magnet]

One should never buy physical gold from bank or ornaments for INVESTMENT purpose. You can buy it if you like the pleasure of owning gold.

To invest in gold always use ETF.

Here are the important reasons

1. Banks sell gold coins at a premium of 15 percent over the gold rate at that time. This premium is taken for giving the guaranty of purity.

But they will not buy it back, because they do not want to pay you that 15 percent premium. So you are forced to sell it elsewhere and lose the premium amount.

So if you buy gold worth 11500 from a bank. The next day if you sell it to some other source you will get only 10000 rupees.
2. In case of Gold ETF, if you hold it for more than 1 year it is considered as a long term capital. Any profit you get from selling it will be taxed at 20 percent. But in case of gold bar or coin, you need to hold it for 3 years for it to be considered as a long term asset. If you sell it before that time then you have to pay a income tax at 30 percent on the profit.
3. But the tax problem does not end here. After 3 year’s you need to pay a wealth tax on gold bar or coin at the rate of 1 percent every year which is not needed in case of gold ETF.
4. Finally, gold can get stolen. Bank locker or insurance can cost you a tidy sum.

So in short if you invest in gold then invest in gold ETF not in gold coin or bar.

One more point here is that gold is a good asset for times of crisis. In good times it is better to invest in share market. You will get far more retuns from it.

1:: I am aware of it i never buy from bank .

2::Gold etf ...well i have still doubts heard whatever u invest ard 4% of your investment goes into the AMC charges or vault charges or insurance

But positive to invest in nsel new gold demat stuff ard 0.4% charges

http://economictimes.indiatimes.com...es/Gold-in-demat-form/articleshow/5758814.cms

3:: Wealth tax is charged on above 30 lakh assets i guess its not 1% after 3 years or something Anyways from next year that too will go under direct tax code. So it will be more easy o add in your portfolio or investment(DTC 0.25% on 50 crore assets)

4:: I guess for investing ard 3-5 lakh ull get 300 grams of gold...When u can store 10k amount of cash even that much secure place in your home u can create or it will use same space as 10k cash ...Though even i want a much more white approach rather than physical product

 

[blitz2280]

1:: I am aware of it i never buy from bank .

2::Gold etf ...well i have still doubts heard whatever u invest ard 4% of your investment goes into the AMC charges or vault charges or insurance

But positive to invest in nsel new gold demat stuff ard 0.4% charges

http://economictimes.indiatimes.com...es/Gold-in-demat-form/articleshow/5758814.cms

3:: Wealth tax is charged on above 30 lakh assets i guess its not 1% after 3 years or something Anyways from next year that too will go under direct tax code. So it will be more easy o add in your portfolio or investment(DTC 0.25% on 50 crore assets)

4:: I guess for investing ard 3-5 lakh ull get 300 grams of gold...When u can store 10k amount of cash even that much secure place in your home u can create or it will use same space as 10k cash ...Though even i want a much more white approach rather than physical product

Thanks Magnet. I was not aware of demat gold scheme.

It seems that the only hiccup is having to open an additional demat account. Do you know the account opening charge and annual charge for this gold demat account?

Also, I checked in detail for the charges of Gold ETF. I found that for Benchmark Gold ETF ( probably also called GoldBees ) it is 2% per year. But it is still 5 times the 0.4% charged for demat gold.

The details about Gold ETF are here http://niftyprediction.blogspot.com/2008/09/gold-etf-invest-in-gold-without-buying.html

 

[magnet]

Thanks Magnet. I was not aware of demat gold scheme.

It seems that the only hiccup is having to open an additional demat account. Do you know the account opening charge and annual charge for this gold demat account?

Also, I checked in detail for the charges of Gold ETF. I found that for Benchmark Gold ETF ( probably also called GoldBees ) it is 2% per year. But it is still 5 times the 0.4% charged for demat gold.

The details about Gold ETF are here http://niftyprediction.blogspot.com/2008/09/gold-etf-invest-in-gold-without-buying.html

Yup even i am bit confused

This stuff mentions its free to open account but have only few participants right now

Even gold etf which u buy are said to be demat gold..And now this NSEl too is demat ..So i do get confused and so are u sir in your post i guess

The nsel is a different product than gold traded funds .Its demat gold but not the gold etf in real sense

More details

http://www.nationalspotexchange.com/egold.htm#

Also ill wait for articles from persons who have invested in it to know how it works

Since all articles about gold etf never mentioned about the 4% charge stuff and now i see in this article an expense angle in gold etf else i thought when u buy it after that u have to 4get about it unless u need it to sell


And ya your details about 1% was correct...I can see that in this article

http://www.rediff.com/money/2007/mar/09gold.htm

But ya its mentioned over specified limit...The article is of 2007 .At that time wealth tax was on 15 lakh + now its 30 lakh plus and from next year DTC will come so another change


Btw regarding NSEL stuff even anyones gets detail and article do share here