I want to invest 20 lac Rupees for my future..help me?

Question

I did invest Rs 6 lacs in post office MIC.apart from post office I want to invest Rs 20 lac.....
(I have house ...car and all the things I just want to invest)

Answer 1

if you just want to invest then you have four option.

1. secured investment. you should buy property in underdevelop townships where you get return 50-100% after 3-4 years till then you can earn some income as rent. also you can invest in govt. bonds/ FDs . liquidity is not easy and capital gain apllicable

2. partly secured. you can invest in mutual funds offered by various company. easy liquidity but capital gain applicable

3 un-secured. you can invest in shares where the return is very high in compare with any option but the risk will be high also. easy liqudity and tax applicable

4. other option: today almost all the insurence companey are offering equity linked insurence plan means they will invest your money in the shares and they will give you the return according to there profits. its as high as return like a mutual funds. here your capital will be at no risk because of under section 15 A, your investment will be secured by Govt. of india. and the return what you will get that will be tax free cos income from life insurence plan is tax exempted. and liquidity is easy in this type of plan just check the option and ask your insurence advisor about it, he will give you the detail. you can expect a annual return in this type of plan upto 30-40% as well as you will get a life insurence upto 10 times of your investment. these companey will give you the detail about your portfolio where your money is invested every month and you can change your investment plan when ever you feel like swithing your investment plans

Answer 2

The best place to research Indian mutual funds with an unbiased view is http://www.valueresearchonline.com/ . Other options is to read about mutual funds at http://www.easymf.com.

Regarding deposits and withdrawal to a MF. You can enroll in any plan with a minimum initial investment amount using a cheque. Other option is to enroll for a SIP plan and have ECS clearance. This way, your deposits from MF are directly credited into your bank account. Similarly your investments into a MF are directly taken out of your bank account.

Some of the funds that I have seen being invested as a Systematic Investment Plan are:

Franklin Flexicap - Dividend (reinvested)
HDFC Equity - Dividend (reinvested)
HSBC Equity - Dividend (reinvested)
Reliance Vision - Dividend (reinvested)
SBI Magnum Contrafund - Dividend (reinvested)
Templeton India Growth - Dividend (reinvested)

The best Income fund is

JM Arbitrage Advantage Fund - Growth

You could find detailed plan as to how to invest regularly in these funds and make a crore rupees out of a monthly investment of Rs 5000 at http://in.groups.yahoo.com/group/MAKING_A_CRORE_RUPEES/

Answer 3

Dude ,
IT all depends opn UR time horizon , as mentioned that U already have a home then buying a property & liquidation it later U will attract tax .
Ping me I shall give U a free advice .

Answer 4

you can invest different mutual funds by select and earn average benefit of indian economy. i can agree you best benefit

Answer 5

Property is the best thing .. just buy at any upcoming place and its sure to shoot up

Answer 6

Contact [e-mail] with all details!

Answer 7

BUY A PIECE OF LAND ON ANY HIGHWAY AND SEE THE MONEY GROW

Answer 8

Be helped by equity funds
Diversified equity funds are often looked upon as the 'Plain Janes' of the mutual fund industry. 'What's so great about them if you can invest directly in stocks?' is what people have probably told you.
It's time to take a good look at what the seemingly plain diversified equity fund is capable of delivering.
You don't have to go back too far in time. In 2005, the best performing diversified equity fund delivered a return of 80.21%. You read that right! The lousiest actually delivered 23.32%.
Not a single diversified equity fund lost a single penny over the calendar years 2003 to 2005. Even the worst fund returned over 37% per annum during this time period.
In 2006, the returns were more subdued. Nevertheless, the best fund delivered a return of 61.48% and the worst, -3.20%.
Let's say that, 10 years ago, you put in a one-time investment of Rs 10,000 in two funds: HDFC Equity and Magnum Equity. By January 1, 2007, your investment in HDFC Equity would be worth Rs 2,66,763 and Rs 73,185 in Magnum Equity.
The varied assortment
While we talk about diversified equity funds as a category, it will be inaccurate to assume they all have the same focus. In fact, nothing could be further from the truth.
Some like Magnum Midcap, Franklin India Prima, Sundaram BNP Paribas Select Midcap and Birla Mid Cap are focussed on mid-cap stocks.
Some funds like Pru ICICI Growth and Franklin India Bluechip are focused on large-caps.
Birla MNC and UTI MNC are examples of those investing in multinational companies. DSP Top 100 Equity invests in the 100 largest companies.
And that was just the investment focus. They differ on how much they invest in debt (fixed return), equity (stocks) and how much they hold in cash.
The funds will also differ on the number of stocks that each fund manager decides to invest in. Some may have more than a hundred stocks, others around 20.
Picking the right one
As of now, there are over 150 diversified equity funds in the market. And the variety is immense.
If you decide to invest in them, make sure you understand the objective of the scheme and see if it fits in with your investment needs. Don't just blindly invest in any fund or New Fund Offering that hits the stands.
Ask yourself certain questions:
1. Am I comfortable with the fund's objective?
2. Has the fund manager invested in too few stocks?
3. Is s/he very heavy on either mid- or large-caps?
4. Is s/he holding a huge amount in cash?
5. Has he invested very heavily in just one sector?
In other words, make sure you understand what you are investing in.
We have picked up five good funds, which we will carry tomorrow. Take a look and see if they fit into your profile.
SIP: Best investment policy
Zealous advertising by asset management companies leads to some concepts and products being misunderstood by customers. They come up with unusual requests, which put service providers in a spot.
I market mutual fund products. Recently, a client came up to me and asked for an application form for systematic investment plan (SIP). I replied, "Wonderful, which scheme you want to start an SIP for?"
He got a bit agitated and looked at me with disgust. He gave a supercilious guffaw and said, "What do you mean which scheme? Don't you know SIP is a fund which has given stupendous returns on your investments."
It took a bit of convincing to reassure him about my professional competency. He backed down a bit and listened to my take on SIP.
An SIP is an old tried and tested method of investing. It is not a miraculous investment scheme that gives outstanding returns.
SIP is a method of investing a fixed /regular sum every month or every quarter. The investment can be in the scheme of your choice as most mutual funds give you this facility for their schemes. In other words, instead of investing lumpsum in one scheme you invest a smaller fixed amount every month or every quarter.
For example: If your scheme of choice is, say, HDFC Top 200 or DSPML TIGER and you want to invest Rs 1,00,000 in it. Instead of issuing a cheque of Rs100,000 at one go, invest Rs 5000 every month for 20 months. This is systematic investment planning.
The biggest plus which SIP provides you with is regular disciplined savings. I have observed that the urban yuppie is living an EMI-supported lifestyle
Homes, cars, timeshare memberships for holidays, laptops, all sorts of consumer durables are bought on EMIs, which eat into their salaries. It is virtually impossible to accumulate a decent sum which can be invested at one go. An SIP gives them the benefit of piecemeal investing of small sums.
Every month, like all other EMIs, this also gets deducted from the bank a/c through electronic clearing service, which is convenient. A SIP does not pinch the pocket much if started at an earlier stage. It adds the power of compounding to your savings. An illustration of power of compounding works as under:
Suppose every year you invest Rs 60,000 at 12 per cent per annum. After 30 years it will add up to Rs 1.60 crore (Rs 16 million). If the savings were started 5 years later the kitty accumulated would be lower by Rs 90 lakh (Rs 9 million) to just Rs 89 lakh (Rs 8.9 million). Just an early start of five years, that is, an additional Rs 3 lakh (Rs 300,000) of incremental investment increases your corpus by almost a crore (Rs 10 million). That is the power of compounding.
Want more money to retire comfortably? Start one more SIP, for a higher amount.
SIP facilitates averaging costs over a period of time. Since you are investing the same amount every month or every quarter, the average NAV at which you have acquired the units will be lower.
Let's say, Mr Z invests Rs 5,000 every month and has started the SIP in September 2006 (Table I).
Table I
Month Amount invested (Rs)NAV (assumed)Units allocated
Sept 065,00010500
Oct 065,00010.5476
Nov 065,0009555
Dec 065,00013384
Jan 075,0008625
25,0002,540
As you can see more units are allotted to Mr Z when the NAV is lower and fewer number of units are allotted when the NAV is higher. The average cost per unit for Mr Z is Rs 25,000/2,540 = 9.85 and the average cost during the same period would work out to (Rs 10+10.5+9+13+8/5=10.1)
Had Mr Z invested his Rs 25,000all at once in September 2006 he would have been allotted 2500 units at the cost of Rs 10. This is assuming a no load structure in both the methods of investing.
Wait, there is a qualification!!. If a SIP is started for a short period or especially during a singular bull run ,it will work against you. Every time you invest it will be at a higher NAV and the units allotted will be lower. Well, then where is the misunderstanding?
With so many points in its favour, you might believe that one just cannot err with an SIP. That's incorrect. There is a certain way of reading the performance of an SIP vis a vis lumpsum which is explained below. A leading equity scheme has showcased these returns as per the table below:
The table assumes an investment the scheme Rs 1,000 per month. SIP against a lumpsum investment every year for five years, three years & one year, the returns would be as follows (Table II):
Table II
5 years SIP3 years SIP1 Year
SIP investmentsRs 1,000 p.mRs 1,000 p.mRs 1,000 p.m
Total amount invested60,00036,00012,000
Returs (annualized)54.18%50.81%38.53%
On Time investmentsRs 12,000 p.aRs 12,000 p.aRs 12,000 p.a
Total amount invested60,00036,00012,000
Returns (annualized)50.60%43.53%34.15%
Clearly, the returns earned though an SIP is higher across all periods. But if you notice, returns from a lumpsum investments were not all that bad either. This scheme had also beaten the benchmark whether you invest via an SIP or a lumpsum. (Since the scheme name is not revealed, benchmark becomes irrelevant)
Sometimes, the underperformance is cleverly couched by highlighting the SIP returns only. Returns across other parameters and compared with the benchmark may be poor.
So one must study all the parameters before deciding to invest. Unfortunately if you have chosen a dud scheme to invest systematically in, it will not transform its laggard status and give you poor returns for sure.
An SIP should be treated as what it is, a nice process of investing. The true test of a mutual fund scheme is its ability to beat its peers as well as its benchmark consistently.
The correct approach is to pick out a leading pedigree scheme, a consistent performer in a category, which suits your risk appetite, to systematically invest in.
Pension funds to save tax
If you thought equity-linked savings schemes were the only mutual fund products you could invest in to save tax under Section 80C, here's a surprise.
Mutual fund pension plans, targeted towards your retirement corpus, can also help you in your tax planning. These are debt-oriented balanced funds that take equity exposure of up to 40 per cent (as opposed to 65 per cent equities in regular balanced funds), while keeping the remaining in 'safer' debt instruments.
Currently, there are two MF pension plans on offer - Templeton India Pension Plan and UTI - Retirement Benefit Pension Fund. Both these schemes offer section 80 C tax benefits.
For instance, if your taxable income is Rs 300,000, and if you invest Rs 100,000 in TIPP or UTI RBPF, your taxable income comes down to Rs 200,000. As these schemes target your retirement, they mandate that you stay invested till the age of 58. Early withdrawals attract a high exit load. Of the two, we suggest you take a look at TIPP.
Consistent performance
TIPP has shown consistency over a long period of time. Over the past three and five years, TIPP returned 16.1 and 20.1 per cent, respectively, as against 15 and 17 per cent for corresponding periods by UTI RBPF.
We took the standard deviation of all balanced funds for the past three years and checked out the extent of fluctuation of the scheme's returns from that of its average return for the same period. TIPP has the lowest SD and stands third on the risk-adjusted returns charts.
On the other hand, UTI RBPF, in the past year, has managed to return only 7.7 per cent despite investing 15-20 per cent in equities. Even a one-year bank FD earns eight per cent. Besides, the fact that the fund, which can invest up to 40 per cent in equities, is benchmarked against the Crisil MIP Blended Index (that has 15 per cent allocation to equities) doesn't work in its favour.
Regular dividends
Once you turn 58, you can either withdraw the full amount (without exit load) or choose to receive a pension in the form of dividends. If you choose dividends, you are entitled to receive dividends in the form of pension.
TIPP has consistently given an average of 12 per cent dividend per annum for six years now. Even if you choose the dividend option at the time of investment, you will start receiving dividends only once you turn 58.
Portfolio
TIPP has consistently maximised its equity investments. As per its December 2006 portfolio, its top three sectors are banks, information technology and auto companies. It also invests in debt scrips of high credit quality.
How the Funds Have Fared
Returns (%)
SchemeNAV (Rs)1 Year3 Years5 Years
TIPP44.219.516.120.1
UTI RBPF19.77.71517
As on January 16, 2007