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( Recurring Deposits Vs SIP ) vs Tax

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  #1  
Old 10th July 2010, 03:47 PM
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Default ( Recurring Deposits Vs SIP ) vs Tax

hi all

I all i m just wondering if investment in recurring deposit is more beneficial or in MF ( debt ).

I m intrested in investing 2000 pm for 3 years . should i invest it in RD or MF ( debt ) .

RD will fetch me 7.5% annually . but MF in debt will fetch me slightly ( or more ) higher .

But their is tax on the income that we receive from MF ( debt ), but i m not sure if it is also true for RD .

Can any body help which once to choose

thnk suresh


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Old 12th July 2010, 04:23 PM
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Default Re: ( Recurring Deposits Vs SIP ) vs Tax

Quote:
Originally Posted by sureshsharma1979 View Post
hi all

I all i m just wondering if investment in recurring deposit is more beneficial or in MF ( debt ).

I m intrested in investing 2000 pm for 3 years . should i invest it in RD or MF ( debt ) .

RD will fetch me 7.5% annually . but MF in debt will fetch me slightly ( or more ) higher .

But their is tax on the income that we receive from MF ( debt ), but i m not sure if it is also true for RD .

Can any body help which once to choose

thnk suresh
There is no guarentee of debt MF fetching you higher returns than RD. Currently debt MF's aremore efficient than RD's in general. More clarity will come for DTC in coming months.
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Old 13th July 2010, 04:20 PM
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Default Re: ( Recurring Deposits Vs SIP ) vs Tax

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Originally Posted by nikrod View Post
There is no guarentee of debt MF fetching you higher returns than RD. Currently debt MF's aremore efficient than RD's in general. More clarity will come for DTC in coming months.
Hi Nikrod

Thanks for your help...

I need you further help if you can pls check and advise the below profile of mutual funds suites me.

Kindly note that i m will to risk , and will be investing by money for 5 or more years . the total amount i will be investing is Rs 50,000in mf .

Catagory --- Large cap Eqty funds --- HFDC Top 200 Eqty Fund -- 35%

Catagory --- Mid cap funds --- DSP Blackrock small and midcap fund -- 15%
OR Birla Sun Life Midcap Fund

Catagory --- Divfied Funds --- DSP BlackRock Equity Fund -- 25%
OR Reliance Growth Fund

Catagory --- Thematic Fund --- DSP Blackrock World Mining Fund --15 %
Templetion India Growth Fund


Catagory --- MIP --- Birla Sun Life MIP 2 - Savings 5 Plan ---5%
Or HDFC Monthly Income Plan - LTP

Catagory --- Liquid Funds - HDFC Cash Mang Fund - Treasury Adv ---5%
Or Kotak Flexi Debt- Institutaional Plan

Pls note that iv has invested in ULIP premium paid is 15000 per year and Rs 2000 every month in RD. should i n=invest more in debt mf ?

Thnk Suresh

Last edited by sureshsharma1979; 13th July 2010 at 04:29 PM.
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Old 14th July 2010, 12:22 PM
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Default Re: ( Recurring Deposits Vs SIP ) vs Tax

Quote:
Originally Posted by sureshsharma1979 View Post
Hi Nikrod

Thanks for your help...

I need you further help if you can pls check and advise the below profile of mutual funds suites me.

Kindly note that i m will to risk , and will be investing by money for 5 or more years . the total amount i will be investing is Rs 50,000in mf .

Catagory --- Large cap Eqty funds --- HFDC Top 200 Eqty Fund -- 35%

Catagory --- Mid cap funds --- DSP Blackrock small and midcap fund -- 15%
OR Birla Sun Life Midcap Fund

Catagory --- Divfied Funds --- DSP BlackRock Equity Fund -- 25%
OR Reliance Growth Fund

Catagory --- Thematic Fund --- DSP Blackrock World Mining Fund --15 %
Templetion India Growth Fund


Catagory --- MIP --- Birla Sun Life MIP 2 - Savings 5 Plan ---5%
Or HDFC Monthly Income Plan - LTP

Catagory --- Liquid Funds - HDFC Cash Mang Fund - Treasury Adv ---5%
Or Kotak Flexi Debt- Institutaional Plan

Pls note that iv has invested in ULIP premium paid is 15000 per year and Rs 2000 every month in RD. should i n=invest more in debt mf ?

Thnk Suresh
Yor fund selection and allocation is mostly OK. I would like to give some suggessions though. Kotak Flexi Debt- Institutaional Plan is for institutional investors. Institutaional plans generally have very high minimum investment limits & different expense ratio than retail plans. You can invest in retail plan of same scheme. Another note is Templetion India Growth Fund is not a thematic fund. It can be called as mid cap oriented fund or a multi cap.

Also funds DSP BlackRock Equity Fund & Reliance Growth Fund are mid cap funds with some large cap exposure.

Try to invest via SIP route and stay invested atleast for 5 years. Happy investing.
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Old 16th July 2010, 08:14 PM
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Default Re: ( Recurring Deposits Vs SIP ) vs Tax

Quote:
Originally Posted by sureshsharma1979 View Post

But their is tax on the income that we receive from MF ( debt ), but i m not sure if it is also true for RD .
You are liable to pay tax in RD as well. I think ICICI deducts tax at source (not very sure) but you need to pay tax. The interest that you get gets added to your income from other sources

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