Mahindra and Mahindra Finance Ltd. Fixed Deposits

Discussion in 'Mutual Funds Discussion Forum' started by lotmanythings, May 16, 2010.

  1. lotmanythings

    lotmanythings Member

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    Hi,

    Ive just found out that Mahindra and Mahindra Finance Ltd. is offering fixed deposits at 8% per annum. Since Mahindra is a very big company, I thought the risk involved would be very low. Also, it is rated FAA by Crisil, which indicated High Safety.

    Please comment on these FD's and whether it is wise to invest in them at this time.

    Thanks,
     
  2. magnet

    magnet Active Member

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  3. magnet

    magnet Active Member

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    If u still want to invest in sound companies also check ibn18

    its giving 12% which will give u more return over a year even if u fall under 30% tax bracket than mah and mah

    Though ratings wise its a bit risky than mah and mah..But i guess atleast we know about the company much

    http://www.clickindia.com/detail.php?id=5273572

    http://myiris.com/newsCentre/storyShow.php?fileR=20100420201249200&dir=2010/04/20

    Also note for company fds above 5k interest tds is deducted not like banks where on above 10k it does
     
  4. rvm123

    rvm123 Active Member

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    shriram transport is issuing non-convertible bonds with interest around 11.25%. that also seems to be a good investment
     
  5. magnet

    magnet Active Member

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    Well what u missing is that rates would be applicable if u parked the money for more than 6 years...for single year its the same as mahindra and mahindra 8-9%

    I wont advise to lock money for such long period that too in insecure stuff

    I again stick to ibn18 ....

    Note::invest at your own risk...i might invest and i dont have any holding or work there ...its just a decision with risk on my money which i keep in fd at 6.5% yearly interest
     
  6. rithikesh

    rithikesh Active Member

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    Magnet and others interested in Fixed Income products.

    1. STFC NCD issue is far better than Corporate FDs, even better than Co-op Bank FDs, as they are secured againsts the assets of the company. It is a good and secured credit quality paper. Moreso, although it is for 5yrs or more, but it will be listed on NSE providing you an option to sell there. And the liquidity is also good. Check out liquidity of TATACAPN3, SRTRANSFINN3 on nseindia.
    Remember, NCD issues follow first-come-first-serve basis allotment.

    2. Consider MIP-Growth options of MFs. They carry very less risk, while better than FD returns.

    3. Recently, I have learnt about Muthoot Gold Bonds, which they say are secured and provide return as good as 12%. Planning to put some there.

    4. Corporate FDs are also good, but go for goods ones and not more than 1 to 2 yrs.
     

  7. magnet

    magnet Active Member

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    Ya ditto..i myself did small study to invest in jp associates..but after some net searching what i found were article which suggested same to go for NCD rather than company fds....And even if u want to go dont go for beyond 1 year company fd...
    Invest only in good ones like mah and mah,tata motors,jp associates and others well established and having sound ratings

    I am trying to search the article where ncd and company fd comparision is given..i forgot to bookmark the page
     
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