-
Amazon Deals - ToS - Warp
How to save and invest hardcore earned money ??
- Thread starter IndianMascot
- Start date
- Replies 368
- Views 33,576
soodgautam
Jolly Blunt Roadrunner
For high risk - high return - Equity Mutual Fund (One time or SIP), but dont buy stocks directly - very difficult to time the market for an individualFor decent returns at low risk - FMP (better than fixed deposits because they give you 11-12% returns POST TAX)
desib0y2011
Newbie
If you are risk averse, invest in gold ETF options which would limit your downside to the option premium.
Can you pls explain this gold ETF options with benefits.
Gold ETF is nothing but a simplistic approach to investing in gold. You no longer need to buy physical representations of gold, but instead, can trade with it, just like you would do a mutual fund or a stock. It is all paperless. These funds (ETFs) are such that almost the entire corpus (to the tune of 99% in most), goes into gold at bullion rates, and the rest 1% might be put into select rated financial instruments. Due to this pattern, it doesn't matter which fund house's ETF you end up taking - they will give you the same returns over any duration.
Exchange-Traded Funds (ETFs) are securities that trade like stocks but are supposed to track the price of an index like the Dow or S&P 500 instead of an individual company, or they may be designed to track the price of a commodity like oil, gold, or silver.
In and of themselves, ETFs are not illegal or immoral and may in fact be the right purchase choice for traders. The main issue I have with the gold and silver ETFs is that they have been presented to potential investors as 100% backed by gold and silver. In fact, evidence is mounting that some ETFs hold no gold or silver at all, and may even be part of a campaign on the part of central banks and big government to keep the prices of gold and silver from appreciating.
ETFs are among the fastest growing investment vehicles in the financial market today, accounting for more than $178 billion in "net inflows" in 2008, while traditional mutual funds experienced almost $179 billion in "net outflows" during the same period. In other words, $178 billion more flowed into ETFs in 2008 than flowed out, while $179 billion more flowed out of traditional mutual funds than flowed in.
Sometimes gold and silver ETFs are the right choice for traders, but the wrong choice for investors. That's because when you scrutinize the gold and silver ETFs carefully, it turns out that when you buy ETF shares, you may not be buying actual gold and silver, but rather exposure to the price of gold and silver… and there's a big difference.
ETF Shares Not Same as Owning
Can you pls explain this gold ETF options with benefits.
Gold ETF is nothing but a simplistic approach to investing in gold. You no longer need to buy physical representations of gold, but instead, can trade with it, just like you would do a mutual fund or a stock. It is all paperless. These funds (ETFs) are such that almost the entire corpus (to the tune of 99% in most), goes into gold at bullion rates, and the rest 1% might be put into select rated financial instruments. Due to this pattern, it doesn't matter which fund house's ETF you end up taking - they will give you the same returns over any duration.
Exchange-Traded Funds (ETFs) are securities that trade like stocks but are supposed to track the price of an index like the Dow or S&P 500 instead of an individual company, or they may be designed to track the price of a commodity like oil, gold, or silver.
In and of themselves, ETFs are not illegal or immoral and may in fact be the right purchase choice for traders. The main issue I have with the gold and silver ETFs is that they have been presented to potential investors as 100% backed by gold and silver. In fact, evidence is mounting that some ETFs hold no gold or silver at all, and may even be part of a campaign on the part of central banks and big government to keep the prices of gold and silver from appreciating.
ETFs are among the fastest growing investment vehicles in the financial market today, accounting for more than $178 billion in "net inflows" in 2008, while traditional mutual funds experienced almost $179 billion in "net outflows" during the same period. In other words, $178 billion more flowed into ETFs in 2008 than flowed out, while $179 billion more flowed out of traditional mutual funds than flowed in.
Sometimes gold and silver ETFs are the right choice for traders, but the wrong choice for investors. That's because when you scrutinize the gold and silver ETFs carefully, it turns out that when you buy ETF shares, you may not be buying actual gold and silver, but rather exposure to the price of gold and silver… and there's a big difference.
ETF Shares Not Same as Owning
^^ You do realize that the same applies to money also. What you have is a worthless piece of paper with no intrinsic value. The value comes from the government's backing of that money. As long as the ETF is backed by a solid and reputable organization, its as good.
desib0y2011
Newbie
^^ You do realize that the same applies to money also. What you have is a worthless piece of paper with no intrinsic value. The value comes from the government's backing of that money. As long as the ETF is backed by a solid and reputable organization, its as good.
Totally agree with you on this about our currency (not money).
As long as the ETF is backed by a solid and reputable organization
I doubt that because I haven't seen the 'solid and reputable' organization's gold vault. (btw, 'solid and reputable' reminds me of UTI in year 1999/2000 :cyclops🙂
Totally agree with you on this about our currency (not money).
As long as the ETF is backed by a solid and reputable organization
I doubt that because I haven't seen the 'solid and reputable' organization's gold vault. (btw, 'solid and reputable' reminds me of UTI in year 1999/2000 :cyclops🙂
D
Deleted member 7160
If possible, relocate to economy cities - Hyderabad/ Bangalore?
These cities are no more economic cities buddy. Bangalore is very expensive place to stay. The petrol is the costliest in Bangalore, the property rate has also increased a lot.
These cities are no more economic cities buddy. Bangalore is very expensive place to stay. The petrol is the costliest in Bangalore, the property rate has also increased a lot.
^ Real estate is indeed a good bet, provided one knows where to buy from. Your location says Ghaziabad, I doubt one can get anything at 5L there today
thats why I got that much, only underpriced (or reasonably priced) property can give you better return i.e location matters
you wont get good appreciation in delhi where price is already very high.
I got it @1950 psf +free parking+club+edc+idc etc.
and sold @ 2300 (although rate was 2550)
thats why I got that much, only underpriced (or reasonably priced) property can give you better return i.e location matters
you wont get good appreciation in delhi where price is already very high.
I got it @1950 psf +free parking+club+edc+idc etc.
and sold @ 2300 (although rate was 2550)
IndianMascot
Addicts
Relocation is not an issue. bt people like me get relocated automatically according to the Job. And investing in reality sector is always an better option and I would definately go for it but on a later stage.But if someone wish to invest on smaller scale, then wt can be the best available options. ETF looks good wt now some new drawbacks are being shared.@ desiboy: So, wt else can be other options ??
The best way as mentioned in the initial parts of the thread is Gold & FDs. If u want to be totally away from risk & still earn good, then these 2 are the best bets. Or at max, Debt linked MFs, provided the debts held by that Fund are solid.Stock Markets....well, u can buy & hold stocks of fundamentally strong cos, and they will invariably yield u good returns over a longer period of time. But to find out which co. is Fundamentally strong, u have to do good research, or ask someone who has good knowledge in the market & is reliable for u.And for Mascot (who has actually started this thread), theres another option.......buying property WITH DUE CARE & DILIGENCE, in areas like Vasai, Virar. Prices wud increase manifold there, as compared to prices in say a Walkeshwar.
IndianMascot
Addicts
Yes, earlier I was planning for Vashi, but due to new airport coming there price had shoot up and only option left for me is Vasai. So, wt I assume is we can divide the investment into two parts. Risky and Safe Investmenta) Safe Investment - Gold, FD, ETF and Life Insurance Policiesb) Risky Investment - Shares, .........
desib0y2011
Newbie
Relocation is not an issue. bt people like me get relocated automatically according to the Job. And investing in reality sector is always an better option and I would definately go for it but on a later stage.
But if someone wish to invest on smaller scale, then wt can be the best available options. ETF looks good wt now some new drawbacks are being shared.
@ desiboy: So, wt else can be other options ??
I guess that would be something that would offer capital guarantee & protection such as NSCs, FD etc.
But if someone wish to invest on smaller scale, then wt can be the best available options. ETF looks good wt now some new drawbacks are being shared.
@ desiboy: So, wt else can be other options ??
I guess that would be something that would offer capital guarantee & protection such as NSCs, FD etc.
To all young people out here.....invest in MF, ELSS to save taxes and Equity diversified for other surplus money. Invest in a good fund based on your research not that of a agent.avoid large scale FD's,RCD's etc at all costs, it is for the old not for the young. Those who have EPF will anyway get adequate amount of debt exposure so don't invest in debt(FD etc.) again.buying Gold,silver is good but only in small quantities. Use a gold fund, a gold ETF will require a demat accn.....stay away from property, it is anyway a bulk investment and un-advisable....go for share market with a low charge demat accn. Only buy large caps/blechips at the beggining by seeing TV advice etc. Do it for 2-3 years. If u feel like u are ok with it then stay in and go in deeper otherwise back-off, MF's are a better options.
@ Mascot.....Ur strategy wud be good, provided u can even bear losing the "Risky" component of ur portfolio completely, in WORST COME WORST CASES. U must be earning well enuf in ur job, and i dont think u wud be able to devote much time to Stock markets. Unless u devote much time & u have good knowledge in the market, u have to be ready for anything in the markets. Especially, given the situation these days, where its bloodshed every other day.Actually once i have good amount in bank, i too wud take out a small component to play around in the market. And that component wud be of such size, that even if i lose whole of it, i wont worry.
IndianMascot
Addicts
Yes, You gt me rite. I would rarel get time to keep track on share markets and honestly speaking i had very less knowledge of it. I am sure there are many like me who are unaware and negligent when it comes for investment and end up with some stupid scheme and options. Hence I started this thread so that people like me could be benefited and people like you guys who are well mastered can advice. BTW, how do you monitor share markets and decide whose share is good for purchasing.
